Amazon Shutting Down All Fresh, Go Stores in New Jersey

Amazon will close all of its Amazon Fresh and Amazon Go stores nationwide, shuttering four locations in New Jersey and ending the tech giant’s experiment with cashier-free grocery shopping.

The company announced the closures Tuesday, citing poor performance and changing consumer preferences. The New Jersey stores — located in Paramus, Woodland Park, West Orange, and Newark — will shut down over the next three months.

“We’ve made the difficult decision to close our Amazon Fresh and Amazon Go retail locations to focus on our core e-commerce business,” an Amazon spokesperson said. “We’re working with affected employees to find them positions in our fulfillment centers and other operations.”

The closures affect roughly 200 workers across the four New Jersey locations. Amazon said it will offer severance packages and help employees transfer to other positions within the company, though the spokesperson declined to specify how many jobs would be available.

The Paramus location on Route 17 opened in 2022 to fanfare, featuring Amazon’s “Just Walk Out” technology that allowed customers to grab items and leave without checking out. Sensors and cameras tracked purchases and charged customers’ Amazon accounts automatically.

But the high-tech shopping experience never caught on with Jersey customers, several local shoppers said.

“I tried it once, and it was weird,” said Maria Santos of Paramus, who was shopping at a nearby ShopRite Tuesday. “I didn’t trust it. I like to see my receipt and know what I’m paying for.”

The technology also proved expensive to maintain. Amazon spent millions installing cameras, sensors and scales in each store, costs that the company struggled to recoup as foot traffic remained light.

The Newark store, which opened in 2023 near the Prudential Center, was positioned as a convenient option for commuters and downtown workers. But even that high-traffic location failed to generate sufficient sales, according to Amazon’s internal reviews.

“These stores were a solution looking for a problem,” said retail analyst David Kim of Princeton. “Amazon thought they could revolutionize grocery shopping, but Jersey shoppers are pretty set in their ways.”

The closures add to Amazon’s broader retreat from physical retail. The company also shut down its bookstores and pop-up locations in recent years, refocusing on its dominant online marketplace and cloud computing business.

For New Jersey, the closures represent another hit to brick-and-mortar retail. The state has lost dozens of major retail chains in recent years, from Sears to Bed Bath & Beyond, leaving shopping centers scrambling to fill empty spaces.

“It’s disappointing, but not surprising,” said West Orange Mayor Robert Parisi. “These Amazon stores never seemed to have many customers. We’re already talking to other retailers about the space.”

The Woodland Park location, situated in a busy shopping plaza off Route 46, drew customers initially but saw traffic decline steadily over the past year. Store employees said many customers found the checkout-free system confusing and preferred traditional grocery stores nearby.

Amazon’s retreat from physical grocery comes as other retailers expand their New Jersey footprints. Wegmans recently opened new locations in Bridgewater and Hanover, while Whole Foods continues operating its existing New Jersey stores under Amazon ownership.

The company said it will honor all gift cards and customer credits through the closure dates. Amazon Prime members who used the stores for quick grocery pickup will need to rely on the company’s delivery services instead.

Local officials said they weren’t entirely surprised by Amazon’s decision. Several mentioned that the stores felt more like technology demonstrations than real grocery operations.

“They had a lot of fancy gadgets, but the selection was limited and prices were high,” said Paramus Councilman Chris Guarino. “People want value and convenience, not just cool technology.”

The closures will begin in March, with the Newark location shutting first, followed by West Orange and Woodland Park in April, and Paramus in May. Amazon said it will work with landlords on lease agreements and expects to complete all closures by June.

Workers at the stores learned of the closures in meetings Tuesday morning. Several employees contacted by Jersey Ledger declined to comment, citing non-disclosure agreements.

The company’s decision reflects broader struggles in the grocery industry, where profit margins remain thin and customer loyalty runs deep. Amazon’s attempt to disrupt traditional shopping patterns faced resistance from consumers comfortable with existing stores and wary of new technology.

Retail experts said Amazon’s grocery experiment may have been ahead of its time, but the company’s execution also fell short. Store locations weren’t always convenient, product selection was limited, and the technology sometimes malfunctioned.

“Amazon proved they could build the technology, but they couldn’t build a grocery business that people actually wanted,” Kim said. “In New Jersey especially, you’re competing against really strong local chains that know their customers.”

Amazon will continue operating its online grocery delivery service in New Jersey, which remains popular with customers who prefer shopping from home. The company also maintains dozens of warehouse and fulfillment centers throughout the state, employing thousands of workers.

For now, the four empty storefronts will serve as reminders of Amazon’s failed bet on cashier-free shopping — and New Jersey consumers’ preference for the traditional grocery experience.