Amazon Halts All New Amazon Fresh Just Walk Out Stores

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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by Romr123 »

Just down the street from the WM Neighborhood Market
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by veteran+ »

Romr123 wrote: March 26th, 2023, 6:29 pm Just down the street from the WM Neighborhood Market
You read my mind because I was going to ask you about that but I forgot.

Yeah, even that WMNM is misplaced. One of my Asst. Mgrs at F&E left to become a Store Manager over there. Glad to see him go, LOL.

I visited that store frequently to take its temp and never noticed significant traffic. As time passed, store conditions seemed to deteriorate. Also driving past to store often....................the parking lot was not too busy.
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by Romr123 »

Drove the length of the valley from Indio all the way to RM on Fred Waring--there's another WMNM on Fred Waring in La Quinta...no idea that was there.
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by veteran+ »

Could it be that Albertsons that closed?

It had some Tudor inspired architecture?
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by Romr123 »

Don't know--we were driving past at 50 mph from the casino back to PSP. No idea that E/W route existed!
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by marketreportblog »

Amazon appears to be done with the Twin Cities area:

https://www.axios.com/local/twin-cities ... -subleases
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by storewanderer »

marketreportblog wrote: May 9th, 2023, 5:52 am Amazon appears to be done with the Twin Cities area:

https://www.axios.com/local/twin-cities ... -subleases
Wonder about the not open but done locations in NorCal too...

They wouldn't be successful in MSP. They are doing the right thing to cut their losses and move on.
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by mbz321 »

And...let the lawsuits commence!

https://www.bizjournals.com/philadelphi ... grove.html

By Ryan Mulligan – Reporter, Philadelphia Business Journal
May 12, 2023

Listen to this article 5 min

With plans for at least six new Amazon Fresh stores in the Philadelphia area on hold, one local landlord has filed a lawsuit alleging Amazon is breaching its lease agreement.

Federal Realty GP LLC submitted a complaint against Amazon Retail LLC and Amazon.com Inc. (NASDAQ: AMZN) in Montgomery County Civil Court on March 21, and Amazon filed its response to the suit this week. The landlord-tenant dispute involves the delayed opening of a proposed supermarket at the Willow Grove Shopping Center and sheds some light on what's happening behind vacant Amazon Fresh storefronts across the Philadelphia area and the country.

Federal Realty Investment Trust's legal action comes after Amazon said earlier this year that it was pausing growth plans for the brick-and-mortar Amazon Fresh brand. During a February earnings call, CEO Andy Jassy said Amazon was "not going to expand the physical Fresh doors until we have that equation with differentiation and economic value that we like."

Amazon Retail LLC applied for a Pennsylvania liquor license at 102 Park Ave. in the Willow Grove Shopping Center in August of last year.

According to the lawsuit, Amazon informed Federal Realty Investment Trust on a conference call in October that it had made a companywide decision "not to open all retail stores" it originally intended to launch in 2023.
The proposed Amazon Fresh location in Willow Grove Shopping Center at 102 Park Ave., shown in September 2022.
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The proposed Amazon Fresh location in Willow Grove Shopping Center at 102 Park Ave., shown in September 2022.

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The complaint alleges that Amazon is "intentionally withholding rent under the false premise that landlord is in default of its lease obligations" and "has intentionally refused to complete its work, commence operations or pay rent, despite no interference by landlord.” Federal Realty says that it relocated other tenants within the shopping center for the "sole benefit" of Amazon, including Barnes & Noble, which the grocery store would replace. The suit alleges that Amazon has "unilaterally ceased all efforts" to complete its fit-out work and commence operations, constituting a default on the lease, while Federal Realty has fulfilled all of its obligations.

Amazon signed a 31,133-square-foot lease at the shopping center off Park Avenue in Montgomery County around April 2020, according to court filings. Rent, along with other expenses, totaled over $71,000 per month, the suit shows. Federal Realty, represented by Philadelphia law firm Zarwin Baum DeVito Kaplan Schaer Toddy, is seeking reimbursement of almost $180,000 in unpaid rent and expenses.

In its response filed Monday, Amazon denies the claims. The e-commerce giant, which is is being represented in the case by Greenberg Traurig, said the complaint "incorrectly represented the content" of the October 2022 conference call during which Federal Realty alleges Amazon disclosed the decision to halt Amazon Fresh openings.
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Amazon's response alleges that the store is unable to open for business because Federal Realty "has failed to satisfy the landlord work completion date conditions." It argues that because Federal Realty hasn't completed the necessary alterations or improvements to the building agreed upon in the lease, Amazon has no obligation to start paying rent.

A motion or petition has not yet been filed in the case, and no court hearings have been scheduled.

There are currently 44 Amazon Fresh stores operating nationally, according to the brand's website, with two in the Philadelphia area in Broomall and Warrington. Many others have yet to open their doors, and there are signs that Amazon may be reconsidering its plans — at least in some parts of the country. In Minnesota, the company has put a half-dozen proposed Amazon Fresh locations up for sublease. No Minnesota locations have opened.

Landlords at proposed Amazon Fresh locations in the Philadelphia area either declined to comment on the status of the stores or have not responded to requests for comment. Amazon could not be reached for comment.

The facade of the building at the Willow Grove Shopping Center has been largely built out for months, though the status of the interior work is not clear. It's the same story around the region, with new Amazon Fresh stores in Philadelphia, Bensalem, Langhorne and Havertown at a standstill after applying for liquor licenses, despite outwardly appearing finished. Some of the buildings already feature the Amazon Fresh branding.

The other Philadelphia-area sites identified as proposed Amazon Fresh stores are:

403 West Chester Pike in Havertown
1837 Street Road in Bensalem
9960 Roosevelt Blvd. in Philadelphia
2424 E. Lincoln Highway in Langhorne
570 N. 5th St. in Philadelphia
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by storewanderer »

mbz321 wrote: May 12th, 2023, 6:29 am And...let the lawsuits commence!

https://www.bizjournals.com/philadelphi ... grove.html

By Ryan Mulligan – Reporter, Philadelphia Business Journal
May 12, 2023
.....
The complaint alleges that Amazon is "intentionally withholding rent under the false premise that landlord is in default of its lease obligations" and "has intentionally refused to complete its work, commence operations or pay rent, despite no interference by landlord.” Federal Realty says that it relocated other tenants within the shopping center for the "sole benefit" of Amazon, including Barnes & Noble, which the grocery store would replace. The suit alleges that Amazon has "unilaterally ceased all efforts" to complete its fit-out work and commence operations, constituting a default on the lease, while Federal Realty has fulfilled all of its obligations.

Amazon signed a 31,133-square-foot lease at the shopping center off Park Avenue in Montgomery County around April 2020, according to court filings. Rent, along with other expenses, totaled over $71,000 per month, the suit shows. Federal Realty, represented by Philadelphia law firm Zarwin Baum DeVito Kaplan Schaer Toddy, is seeking reimbursement of almost $180,000 in unpaid rent and expenses.

In its response filed Monday, Amazon denies the claims. The e-commerce giant, which is is being represented in the case by Greenberg Traurig, said the complaint "incorrectly represented the content" of the October 2022 conference call during which Federal Realty alleges Amazon disclosed the decision to halt Amazon Fresh openings.
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Amazon's response alleges that the store is unable to open for business because Federal Realty "has failed to satisfy the landlord work completion date conditions." It argues that because Federal Realty hasn't completed the necessary alterations or improvements to the building agreed upon in the lease, Amazon has no obligation to start paying rent.


So multiple landlords seem to allege that rent is not being paid. Amazon "denies the claims." I find it hard to believe the landlords, multiple landlords especially, would accuse someone of not paying rent who actually did pay rent.

Not paying rent is not the type of conduct I expect from a business that is supposedly as strong as Amazon is made out by Wall Street to be. That is more of a (insert name of bankrupt retailer here) move.
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by Romr123 »

Same stories as Minneapolis in Crain's Detroit Business. Swirling the drain....
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