DISCUSSION
What’s up with the stalled Amazon Fresh openings?
Written by RetailWire Staff
Throughout the U.S., a number of new Amazon Fresh stores have been built out, but are just sitting there, leading some to wonder if Amazon is quietly backing away from the Just Walk Out grocery concept.
Wrote The Information, “For the most part, these Amazon Fresh stores look like they’re ready to open: The lights are on; there are signs for meat, seafood, bread and 15-cent bananas. But the shelves are empty, the doors are locked and no employees are around. Amazon’s pivot from rapid expansion to cost-cutting has left ‘zombie’ grocery stores like these across the country.”
After two years of expansion that resulted in 44 U.S. stores and 19 UK stores, Amazon has refrained from opening any new Fresh stores since September, despite appearing to complete at least seven locations, according to The Real Deal’s analysis of The Information’s findings. The company has another 26 in development, with a recent Detroit Free Press report indicating two are heading to the Detroit region.
Weeks of missed package notices were found at some unopened locations. The Real Deal speculates, “It’s cheaper for the company to keep the stores in place while not operating, rather than ditch the stores altogether. While the company is on the hook for rent, maintenance and taxes, shutting down a store could also force Amazon to pay a fee for a lease withdrawal or severance to hired employees.”
In mid-November, The New York Times reported that Amazon was planning to lay off approximately 10,000 employees, the devices organization, retail division and human resources being the hardest hit departments. A report on December 2 from Computer World indicated the layoffs could balloon to 20,000 as a pandemic-induced hiring spree gets reversed.
In March of this year, Amazon surprised many by moving to shutter its Amazon Books, Amazon 4-star and pop-up locations. At the time, an Amazon spokesman told The New York Times the company will “focus more on our Amazon Fresh, Whole Foods Market, Amazon Go and Amazon Style stores and our Just Walk Out technology.”
One positive: Amazon posted a 10 percent year-over-year increase in net sales at its physical retail stores in the third quarter.
- ‘Zombie’ Amazon Grocery Stores Pile Up as Openings Grind to a Halt – The Information
- Amazon Fresh stores have gone stale – The Real Deal
- Amazon Fresh grocery stores slated for Plymouth, Dearborn – Detroit Free Press
- Amazon is closing all of its Books, 4-star and pop-up stores – RetailWire
- Amazon Is Said to Plan to Lay Off Thousands of Employees – The New York Times
- Layoffs, buyouts, and rescinded offers: Amazon’s status as a top tech employer is taking a hit – Vox
- Amazon.com Announces Third Quarter Results – Amazon
Discussion Thread0
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