Digiday+ Member Article

Amazon is putting the brakes on Whole Foods’ bargain offshoot 365 stores, in an effort to consolidate its grocery retail businesses. With e-commerce grocery sales carried out through AmazonFresh and Amazon Prime Now, physical locations were intended to supplement the digital offerings. Without a clear audience in mind, however, scaling prospects for 365 were unclear.

In an email earlier this month, CEO John Mackey reportedly told employees that the company won’t open any new 365-format stores, though the dozen existing 365 stores will remain open. Mackey suggested the company made the decision because declining prices at Whole Foods overall make the distinction between the two brands less relevant. Industry watchers suggest 365 never really took off, and the decision to wind down the brand is part of an effort to re-focus Amazon’s grocery business.

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