So where is Amazon Fresh coming up short? I don’t think the answer is terribly difficult to arrive at in a broad sense. Amazon Fresh brick-and-mortar stores, it appears, aren’t pulling their weight, and the company may be looking to make a course correction early on - or pull the project altogether. It needs Amazon Fresh to contribute meaningfully to a grocery ecosystem that includes its online packaged goods business, Whole Foods Market, Amazon Go and its Fresh online business. It’s looking for its grocery properties to not just grow but to drive value for its all-important Prime membership. It’s also unclear how Amazon Fresh fits in with the vision CEO Andy Jassy, who took over the top role in 2021, has for grocery.īut Amazon measures success differently from other retailers. The move comes as Amazon is reevaluating its business across the retail enterprise, having just announced more than 18,000 layoffs. An Amazon Fresh press representative said the grocery chain does not comment on its future direction. There’s no official word on why Amazon Fresh appears to be hitting the brakes at a time when a low-price chain should be moving full steam ahead. One local official told the publication that the rollout of Amazon Fresh stores has been put on hold for the time being. It also has more than two dozen Fresh stores in earlier stages of development, The Information reported. These “zombie stores” are reportedly in existing markets like Illinois and Southern California as well as new ones like the Twin Cities.
Tech news site The Information reported last month that the chain hasn’t opened a store since September and that numerous locations that appear set to open are now sitting dormant. Now, it appears that Amazon Fresh has hit the pause button on its store rollout.
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