They had completely reset the store within the last couple of months already. The aisles now have the stupid computer screens for category signs. Store is running skeleton crew as always. The only traffic is to the Amazon Return desk.
It is apparent now that aside from the aisle reset that adds more SKUs especially in GM, the "remodeled" Amazon stores are really only getting new wall decor, walling off the closed meat counter and putting a new cooler in front of it, adding a useless Krispy Kreme kiosk serving trucked in stale doughnuts from a nearby factory store, and adding a couple of self checkout lanes.
This is the Murrieta location that is a former Rite Aid, so smaller format than the chain standard. It was a test for that smaller size and it just does not work.
Produce was also very light and spread out, single broccoli spread across 4 shelves, maybe a dozen of each color of peppers, and lots of green labeled Fresh bags of apples spread out to take up space.
Something was more "off" than usual.
Also I figured out what was happening with the mothballed Corona store.
They are building an EOS fitness next to it, so that was the source of all the sudden arrival of construction equipment. In addition, there is a large red new For Lease sign that was installed facing the freeway behind the building.
I think Corona was one of the first to complete construction and be mothballed. Unlike many other locations this was a completely new shopping center. Since they never arrived the center tenant plan has pivoted, and what was probably going to be a drugstore site along with the rest of the strip of stores on the Southeast corner has been changed to a hotel which is under construction (I think it's Hampton Inn). So they basically killed this center which was promised as walking distance grocery shopping for an entire master planned home development. Not a ton of sympathy here because there's a very nice Stater Bros across the street that appears to be 10 years old or less, although it's a steep uphill walk. I don't know about you, but I would be very unhappy if I bought a home with plans for retail in the middle and it became a hotel. I could see the retail falling through and becoming more homes, but a hotel is different and can bring problems if not well managed.
I'm actually surprised they even sold enough product out of Murrieta to get to that level of out of stocks. It seems too quick for a bunch of it to have expired out. They probably shouldn't have tried that location in the first place. My guess is the remodels they did last summer have been complete flops, their holiday numbers were terrible (I could have said that based on what I saw in IL) and they may be at the end of the line for this format. I have received a few marketing emails from Amazon Fresh Grocery Store lately. Didn't look at them.
It seems like often the grocery component of these "master planned" home developments doesn't shake out as planned. This is the usual type of shady dealings these developers seem to do. Promise one thing then deliver something else that was never even offered as part of the original plan. More houses would be fine, that would just be a continuation of what is already there. Hotels don't belong near residential neighborhoods, they belong in commercial areas.
They had completely reset the store within the last couple of months already. The aisles now have the stupid computer screens for category signs. Store is running skeleton crew as always. The only traffic is to the Amazon Return desk.
It is apparent now that aside from the aisle reset that adds more SKUs especially in GM, the "remodeled" Amazon stores are really only getting new wall decor, walling off the closed meat counter and putting a new cooler in front of it, adding a useless Krispy Kreme kiosk serving trucked in stale doughnuts from a nearby factory store, and adding a couple of self checkout lanes.
This is the Murrieta location that is a former Rite Aid, so smaller format than the chain standard. It was a test for that smaller size and it just does not work.
Produce was also very light and spread out, single broccoli spread across 4 shelves, maybe a dozen of each color of peppers, and lots of green labeled Fresh bags of apples spread out to take up space.
Something was more "off" than usual.
Also I figured out what was happening with the mothballed Corona store.
They are building an EOS fitness next to it, so that was the source of all the sudden arrival of construction equipment. In addition, there is a large red new For Lease sign that was installed facing the freeway behind the building.
I think Corona was one of the first to complete construction and be mothballed. Unlike many other locations this was a completely new shopping center. Since they never arrived the center tenant plan has pivoted, and what was probably going to be a drugstore site along with the rest of the strip of stores on the Southeast corner has been changed to a hotel which is under construction (I think it's Hampton Inn). So they basically killed this center which was promised as walking distance grocery shopping for an entire master planned home development. Not a ton of sympathy here because there's a very nice Stater Bros across the street that appears to be 10 years old or less, although it's a steep uphill walk. I don't know about you, but I would be very unhappy if I bought a home with plans for retail in the middle and it became a hotel. I could see the retail falling through and becoming more homes, but a hotel is different and can bring problems if not well managed.
I'm actually surprised they even sold enough product out of Murrieta to get to that level of out of stocks. It seems too quick for a bunch of it to have expired out. They probably shouldn't have tried that location in the first place. My guess is the remodels they did last summer have been complete flops, their holiday numbers were terrible (I could have said that based on what I saw in IL) and they may be at the end of the line for this format. I have received a few marketing emails from Amazon Fresh Grocery Store lately. Didn't look at them.
It seems like often the grocery component of these "master planned" home developments doesn't shake out as planned. This is the usual type of shady dealings these developers seem to do. Promise one thing then deliver something else that was never even offered as part of the original plan. More houses would be fine, that would just be a continuation of what is already there. Hotels don't belong near residential neighborhoods, they belong in commercial areas.
Murrieta is a trap. Another case of a location with fabulous traffic statistics and an absence of grocery options, but that's because the street is overly congested. They probably saw huge traffic numbers in the lease brochure and assumed the store would be a hit. These sites always flop except for destination retailers, everyday stores do not work in these congested areas of suburbs. Ralphs and Rite Aid didn't make it there, but to be fair the center is completely filled now with discounters (Ross, Burlington, Dollar Tree etc.). Probably a mismatch with high priced Amazon Fresh. Across the street, but with better access is one of the top Sam's Club sites in California, and a huge new Trader Joe's just began construction taking an entire former OfficeMax... Very excited about the TJs because the Temecula one is tiny and has limited parking. Despite being one off ramp apart on I-15 they're keeping both locations.
To be fair, the Corona grocery store was built and has sat empty nearly 3 years now, so the developer did their job. Amazon screwed everyone in that center who signed a lease, their stores are slow and they are all losing money. Having said that, my bet is they're paying little to no rent because of the absence of required tenant which is the only reason they stay open. I've heard of cases where the alternative rent is incredibly low, like a few hundred bucks. But those alternatives are usually only valid a few years and can be updated on lease renewals. So I would guess the throwing together an EOS Fitness was to get a new "required" tenant on the site and increase the rent accordingly. So the tenants will maybe only get a 50% discount instead of a 95% discount as they currently receive. Many leases are extremely generous on absent main tenant especially when there's only one as in this center, and I've operated stores with as much as a 95% rent discount before - it's very realistic to expect this if your real estate people are smart in what they demand in a lease.
ClownLoach wrote: ↑February 12th, 2024, 9:47 am
Murrieta is a trap. Another case of a location with fabulous traffic statistics and an absence of grocery options, but that's because the street is overly congested. They probably saw huge traffic numbers in the lease brochure and assumed the store would be a hit. These sites always flop except for destination retailers, everyday stores do not work in these congested areas of suburbs. Ralphs and Rite Aid didn't make it there, but to be fair the center is completely filled now with discounters (Ross, Burlington, Dollar Tree etc.). Probably a mismatch with high priced Amazon Fresh. Across the street, but with better access is one of the top Sam's Club sites in California, and a huge new Trader Joe's just began construction taking an entire former OfficeMax... Very excited about the TJs because the Temecula one is tiny and has limited parking. Despite being one off ramp apart on I-15 they're keeping both locations.
To be fair, the Corona grocery store was built and has sat empty nearly 3 years now, so the developer did their job. Amazon screwed everyone in that center who signed a lease, their stores are slow and they are all losing money. Having said that, my bet is they're paying little to no rent because of the absence of required tenant which is the only reason they stay open. I've heard of cases where the alternative rent is incredibly low, like a few hundred bucks. But those alternatives are usually only valid a few years and can be updated on lease renewals. So I would guess the throwing together an EOS Fitness was to get a new "required" tenant on the site and increase the rent accordingly. So the tenants will maybe only get a 50% discount instead of a 95% discount as they currently receive. Many leases are extremely generous on absent main tenant especially when there's only one as in this center, and I've operated stores with as much as a 95% rent discount before - it's very realistic to expect this if your real estate people are smart in what they demand in a lease.
When that shopping center with Rite Aid/Ralphs opened in Murrieta I am guessing there wasn't much there at the time (early 90's) in the area so the traffic issue wasn't the same. Over time the center was no longer viable as a neighborhood grocery/drug center due to the traffic issue and other better accessible options on people's commute, somehow Rite Aid hung on for a long time, but Amazon Fresh never should have opened a grocery store in a substandard location in a substandard space. Maybe their thought was we don't care much about walk in traffic, we can get a deal on this store and use it for home deliveries? It is hard to know what they were thinking.
ClownLoach wrote: ↑February 12th, 2024, 9:47 am
Murrieta is a trap. Another case of a location with fabulous traffic statistics and an absence of grocery options, but that's because the street is overly congested. They probably saw huge traffic numbers in the lease brochure and assumed the store would be a hit. These sites always flop except for destination retailers, everyday stores do not work in these congested areas of suburbs. Ralphs and Rite Aid didn't make it there, but to be fair the center is completely filled now with discounters (Ross, Burlington, Dollar Tree etc.). Probably a mismatch with high priced Amazon Fresh. Across the street, but with better access is one of the top Sam's Club sites in California, and a huge new Trader Joe's just began construction taking an entire former OfficeMax... Very excited about the TJs because the Temecula one is tiny and has limited parking. Despite being one off ramp apart on I-15 they're keeping both locations.
To be fair, the Corona grocery store was built and has sat empty nearly 3 years now, so the developer did their job. Amazon screwed everyone in that center who signed a lease, their stores are slow and they are all losing money. Having said that, my bet is they're paying little to no rent because of the absence of required tenant which is the only reason they stay open. I've heard of cases where the alternative rent is incredibly low, like a few hundred bucks. But those alternatives are usually only valid a few years and can be updated on lease renewals. So I would guess the throwing together an EOS Fitness was to get a new "required" tenant on the site and increase the rent accordingly. So the tenants will maybe only get a 50% discount instead of a 95% discount as they currently receive. Many leases are extremely generous on absent main tenant especially when there's only one as in this center, and I've operated stores with as much as a 95% rent discount before - it's very realistic to expect this if your real estate people are smart in what they demand in a lease.
When that shopping center with Rite Aid/Ralphs opened in Murrieta I am guessing there wasn't much there at the time (early 90's) in the area so the traffic issue wasn't the same. Over time the center was no longer viable as a neighborhood grocery/drug center due to the traffic issue and other better accessible options on people's commute, somehow Rite Aid hung on for a long time, but Amazon Fresh never should have opened a grocery store in a substandard location in a substandard space. Maybe their thought was we don't care much about walk in traffic, we can get a deal on this store and use it for home deliveries? It is hard to know what they were thinking.
I think they liked the high traffic and thought it would be a good place to test a smaller format. Didn't work.
