I remember a similar feeling when they opened physical bookstores, it feels like a weird change but as Amazon generates money like other retailers do, with fast inventory turns, it just makes sense to have as many channels as possible to offload said inventory, including physical channels.
I went to a local Amazon fresh store and I was a bit disappointed. It had a barebones kind of feel. I found all I needed but I did not like being there. I can't put my finger on the cause but I don't think I'll return. Part of it was that the store was dark but I suspect there's more to it.
Anyhow, I hope they do better with their new stores.