Amazon Fresh, take 2

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buckguy
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Re: Amazon Fresh, take 2

Post by buckguy »

marketreportblog wrote: April 4th, 2024, 6:02 am A small-format Amazon Fresh in Seattle is closing:
https://www.seattletimes.com/business/a ... itol-hill/
A similar format DC store closed today. They did a 75% off clearance. The store closed on very short notice and not everyone was able to get their packages from the Amazon locker inside.
ClownLoach
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Re: Amazon Fresh, take 2

Post by ClownLoach »

buckguy wrote: April 7th, 2024, 6:13 pm
marketreportblog wrote: April 4th, 2024, 6:02 am A small-format Amazon Fresh in Seattle is closing:
https://www.seattletimes.com/business/a ... itol-hill/
A similar format DC store closed today. They did a 75% off clearance. The store closed on very short notice and not everyone was able to get their packages from the Amazon locker inside.
I suspect any store they don't intend to remodel to the newer format is going to make the same sudden disappearance soon. They still are sitting on a mountain of money specifically held back from earnings to pay lease severance and other expenses. My closest Fresh is a converted Rite Aid so also a smaller than normal format and that has severely hindered its business.
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Re: Amazon Fresh, take 2

Post by lake52 »

I saw some Fire Alarm permit activity at the Roseville store the other day but didn’t think much of it, maybe just the contractor trying to close some stuff out.

Now I see it’s been reported that the Citrus Heights location has applied for a permit with CA ABC and work has resumed at the Elk Grove location. Looks like the Sacramento stores are actually going to open.

https://www.bizjournals.com/sacramento/ ... grove.html
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Re: Amazon Fresh, take 2

Post by ClownLoach »

They apparently are still building in Fountain Valley. I don't think that ever stopped, as the announcement and groundbreaking all started after they had officially mothballed the new stores and canceled some sites. Every time I go into one I leave questioning myself (why did I think this would be any better this time than before?). But if it is true that they merged the WFM and Fresh management, systems, everything else together then it is likely we will see some improvements as new stores open. I'm really surprised by the improvements I've seen at WFM especially the program to pack more SKUs into the smaller boxes with more creative fixtures and such. Visiting a reworked WFM in Santa Barbara versus a comparable size Fresh - it felt like the WFM had double the assortment.

I would remerchandise the Fresh stores to a compact Whole Foods format and revive the 365 name.

The problem with the failed first Gen 365 by WFM was that they built weird and cheap looking stores with funky decorations made of painted peg board, low capacity CVS style fixtures, and almost no perimeter services aside from a tiny hot deli that was primarily pizza. This was never going to be adequate for WFM customers.

The Fresh buildings have all the facilities needed for a compact WFM format (if they put the meat counter back). They have proper full height gondolas. The walls can easily be repainted so they aren't so bleak and dark (which is already fixed in remodeled stores).

On top of that, WFM is still stuck with many former 365 stores that haven't been fully remodeled to a mainline store yet. They removed the 365 signage which is a mistake in my opinion since the store is nothing like a Whole Foods inside.

Resurrect 365 in the Fresh format buildings.
Remodel the messed up first Gen 365 stores to the Fresh layout with the new resurrected 365 assortment.

If they stick with just calling it 365 they theoretically could get away with carrying conventional foods as well. They could draw a line somewhere closer to a mainline market than a health food only store.

I think that there could be room for the concept since it would basically be a new take on a Sprouts size store that attracts more mainstream shoppers.
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