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Amazon Phases Out Partner Grocery Storefronts

Grocery partners will shift from storefronts to new logistics and retail media collaboration models.

Updated on Oct. 21, 2026 in Retail

Isometric editorial illustration showing a steel delivery locker system and a shipping crate in a warehouse, representing logistics and retail systems.
Amazon is phasing out dedicated storefronts for grocery partners, reallocating resources toward internal logistics, supplier collaborations, and integrated retail media services. AI Illustration. Upload story photo >

Live Poll

Does Amazon's shift away from partner storefronts make it easier for you to shop for groceries?

Amazon is phasing out dedicated storefronts for grocery partners like Weis Markets and Winn-Dixie as part of a strategy to streamline its food operations. The transition moves the company toward supplier agreements and expanded use of in-store lockers and return points.

Why it matters

The change responds to consumer feedback regarding delivery fees and shopping friction, as Amazon refines its grocery model around e-commerce and Whole Foods Market. Retail operators should note the shift from partner-facing storefronts toward integrated retail media and logistics services.

Monthly active perishables customers grew by more than 50% in the first half of 2026, building on a foundation of $150 billion in total gross merchandise sales recorded in 2025. E-commerce currently captures 20.9% of all U.S. grocery spending.

The players

Amazon

A multinational technology and retail corporation focused on e-commerce, cloud computing, and physical grocery storefronts.

Weis Markets

A mid-Atlantic grocery chain that previously maintained a storefront presence on the Amazon platform.

Winn-Dixie

A Southern U.S. supermarket chain that utilized Amazon's third-party grocery partner storefront model.

Whole Foods Market

An upscale grocery chain owned by Amazon that serves as a central pillar of the company's refreshed food strategy.

The details

Amazon is pivoting away from its third-party storefront model to prioritize internal logistics and supplier-based collaborations. By leveraging its Amazon Lockers and returns points, the company aims to reduce the friction and delivery fees that previously challenged the partner storefront format. This shift effectively reallocates resources toward e-commerce and Whole Foods Market, emphasizing faster delivery windows like its 30-minute Amazon Now service.

Timeline

  1. 2025: Amazon recorded over $150 billion in gross merchandise sales.

  2. Early 2026: Amazon closed several Amazon Fresh and Amazon Go locations.

  3. May 2026: The company launched 30-minute grocery delivery through Amazon Now.

  4. Coming months: Amazon will complete the transition away from individual grocery partner storefronts.

Market Landscape

Amazon's strategy recalibration occurs as e-commerce captures 20.9% of total U.S. grocery spending. This transition away from partner storefronts marks a departure from earlier attempts to replicate traditional supermarket shopping experiences through third-party hosting.

Operators currently relying on major marketplace storefronts for grocery distribution should re-evaluate their reliance on third-party platforms for direct-to-consumer sales. Focus instead on how internal logistics and local retail media opportunities can replace the reach lost by these storefront transitions.

The takeaway

Amazon is consolidating its grocery strategy to prioritize efficiency and internal infrastructure over third-party marketplace hosting. Competitors should track whether the 50% growth in perishables customers continues as these storefronts disappear from the platform.

Further reading

For broader trends in the changing grocery sector, see our coverage on Retail.

Live Poll

Does Amazon's shift away from partner storefronts make it easier for you to shop for groceries?