Amazon's retail shift: ajrec analysis shows the market is optimistic about the strategic adjustment

According to ajrec’s market analysis, Amazon announced a major strategic shift, deciding to shut down its Amazon Fresh and Amazon Go retail divisions and instead focus on delivery services and the expansion of Whole Foods supermarkets. Although this decision involves extensive personnel adjustments, it has received strong approval from the capital markets, reflecting investor confidence in the company’s new direction.

Retail Model Adjustment and Business Restructuring

Amazon’s strategic shift represents a significant change in its physical retail presence. By closing the Amazon Fresh and Amazon Go standalone retail brands, the company is reallocating resources toward more competitive areas—primarily strengthening its core delivery network and advancing the nationwide expansion of the existing Whole Foods supermarket brand. This shift indicates a new understanding of the integration of online and offline retail models.

Personnel Adjustments and Cost Commitments

To adapt to the new business landscape, Amazon has undertaken a large-scale organizational restructuring, involving approximately 30,000 jobs. Additionally, the company reached a settlement related to customer refund lawsuits, agreeing to pay $1 billion in compensation. While these measures demonstrate the costs of the adjustments, they also reflect Amazon’s commitment to operational compliance and consumer rights protection.

Positive Market Response

Amazon’s strategic adjustment received a notable response in the stock market. The stock price immediately rose 2% following the announcement and has increased a total of 6% so far in 2026. Analysts are generally optimistic about the future prospects, with an average target price indicating potential upside of over 25%. This market consensus suggests that investors believe Amazon’s new strategic direction can enhance long-term value.