It also wants to attract new sign-ups.Īmazon is building Fresh stores to chase a different clientele than Whole Foods’ well-defined customer base, analysts say.
Amazon hopes that Fresh stores will help the company gain more of Amazon Prime members’ spending on groceries, thereby increasing loyalty to the subscription program. The online retailer isn’t just making those moves because it wants a bigger chunk of the US grocery business. Grocery analysts expect that the company will add more beyond that. It will open a 12th Thursday in Long Beach, California, and Amazon says it has plans to open an additional four stores, although it has not given a timetable. Amazon has opened 11 Fresh locations around the United States over the past year.
Instead, Amazon is ramping up openings of Amazon Fresh grocery stores. But this time, Whole Foods isn’t the focus of the strategy. The company's rethinking of plans to open new Amazon Fresh stores is tied indirectly to expansion efforts of Amazon's other grocery chain, Whole Foods Market, said Burt Flickinger, managing director of the Strategic Resource Group, a New York City-based retail consultant.Four years after Amazon bought Whole Foods, the e-commerce giant is making another major push to sell shoppers groceries. Jassy said the company needs to be in a position “where we like the economics.” 2, Brian Olsavsky, chief financial officer, said the company “decided to exit certain stores with low-growth potential,” taking a $720 million charge against fourth quarter earnings in the process.Īndy Jassy, the company's chief executive officer, said the company is temporarily halting expansion of Amazon Fresh grocery stores until a format is found that separates what it offers from other grocers. That calls into question whether Amazon Fresh stores that were expected to open in Orange and Westport will ever move forward.ĭuring Amazon's fourth quarter earnings call with financial analysts on Feb.
The decision by Amazon Fresh officials to reaffirm their commitment to the Brookfield store comes as the company pauses expansion plans elsewhere and closes existing stores. The opening of the Amazon Fresh Brookfield location has been the subject of speculation for at least 18 months. Jessica Martin, an Amazon spokeswoman, said last week that the company had no details to share regarding the opening of the Brookfield store. Obtaining that document is the last major hurdle to a business opening. "I'm confident they will open at some point in the coming weeks and months."ĭembowski said the Candlewood Plaza store has had a certificate of occupancy for several months now. "We have another call scheduled with them in a couple of weeks," he said.
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