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 veteran+ »

ClownLoach wrote: January 23rd, 2023, 2:40 pm So I have heard nothing. The public obviously has not heard anything either. Based on the layoffs of my contacts there doesn't seem to be anyone left from Fresh upper management, so I'm assuming that they decided to give the stores one last shot? Maybe under WFM leadership now? The cost of the lease terminations would be massive with so many sites already signed; I think Amazon could afford a few more months or even a couple of years of losses to give the stores another shot under different leadership. The cost of a lease termination this early on is so high that it probably won't cost much more to keep them open another year or so than if they closed today. And the majority of the "zombie" stores can probably open as WFM to prevent more losses while they retool the broken Fresh brand.

I also found out that the hires from Tesco for Amazon Fresh were not only running the UK stores but actually were in charge in the US. This explains all the parallels with Fresh and Easy... It's the same people at the top, just recycled.

Very disappointing because a lot of really good people were recruited to Fresh from other companies only to be laid off. Almost as if they wanted to clear the corporate offices of competitors, especially Target, to hurt them even though they were hiring way too many leaders for this small group of new, unproven stores.
OMG.................what was Bezos thinking in hiring ANYONE from Fresh & Easy or Tesco?

So much makes sense now regarding Amazon Fresh.

I wonder if these F&E clowns have infiltrated the Whole Foods operations.

I have intimate experience with these F&E folks from the lowest level all the way up and they are categorically toxic for any retail operation. You want a corporate virus that will rot itself from the inside out? Hire Tesco people and Brits that worked at F&E.
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by storewanderer »

veteran+ wrote: January 23rd, 2023, 3:17 pm
ClownLoach wrote: January 23rd, 2023, 2:40 pm So I have heard nothing. The public obviously has not heard anything either. Based on the layoffs of my contacts there doesn't seem to be anyone left from Fresh upper management, so I'm assuming that they decided to give the stores one last shot? Maybe under WFM leadership now? The cost of the lease terminations would be massive with so many sites already signed; I think Amazon could afford a few more months or even a couple of years of losses to give the stores another shot under different leadership. The cost of a lease termination this early on is so high that it probably won't cost much more to keep them open another year or so than if they closed today. And the majority of the "zombie" stores can probably open as WFM to prevent more losses while they retool the broken Fresh brand.

I also found out that the hires from Tesco for Amazon Fresh were not only running the UK stores but actually were in charge in the US. This explains all the parallels with Fresh and Easy... It's the same people at the top, just recycled.

Very disappointing because a lot of really good people were recruited to Fresh from other companies only to be laid off. Almost as if they wanted to clear the corporate offices of competitors, especially Target, to hurt them even though they were hiring way too many leaders for this small group of new, unproven stores.
OMG.................what was Bezos thinking in hiring ANYONE from Fresh & Easy or Tesco?

So much makes sense now regarding Amazon Fresh.

I wonder if these F&E clowns have infiltrated the Whole Foods operations.

I have intimate experience with these F&E folks from the lowest level all the way up and they are categorically toxic for any retail operation. You want a corporate virus that will rot itself from the inside out? Hire Tesco people and Brits that worked at F&E.
Now we know why the stores seemed so off.

And those $$$ off transaction coupons...

It all makes sense now.

Odd they did not bring in any self checkout. I know they had dash cart and the just walk out but still could have used some self checkouts. Well maybe it doesn't matter with the customer counts so low.
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by ClownLoach »

Well we've got a London Amazon Fresh store closing, one less than 18 months old with full Just Walk Out. Wonder if more have been told but it hasn't made it to the public yet.
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by Romr123 »

There's a full signed Amazon Fresh in Rancho Mirage right off 111 which has paper covering the doors...doubt it ever opens. We pulled into the parking lot to investigate but painters' paper over the doors. "Opening Soon" was the sign.
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by veteran+ »

Romr123 wrote: January 24th, 2023, 11:31 am There's a full signed Amazon Fresh in Rancho Mirage right off 111 which has paper covering the doors...doubt it ever opens. We pulled into the parking lot to investigate but painters' paper over the doors. "Opening Soon" was the sign.
Was this a new build? What are the adjacent stores or what's across the street?

If not a new build, what was there before?
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by Romr123 »

Doubt it was a new build--its in a nondescript strip center near the Palm Desert mall...nothing noteworthy about it. It is just down the street from the Walmart Neighborhood Market.
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by ClownLoach »

Amazon Fresh effective immediately... Is charging for delivery unless you spend over $150. And Prime membership is required for any delivery.

I have a theory that they spared these stores for now because they don't want to book the loss until later. So they basically cleared out the entire upper management team, leaving the stores drifting rudderless, and then slashing expenses to stem the bleeding until they can be put out of their misery later.
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by storewanderer »

How much business do you estimate Amazon Fresh will lose as a result of that policy?

I thought they were figuring delivery picking etc. costs into their (very weird) prices.

Also the question if they cleared out management is who made the decision to institute this policy change? This is a pretty significant change.
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by pseudo3d »

ClownLoach wrote: January 28th, 2023, 6:36 pm Amazon Fresh effective immediately... Is charging for delivery unless you spend over $150. And Prime membership is required for any delivery.

I have a theory that they spared these stores for now because they don't want to book the loss until later. So they basically cleared out the entire upper management team, leaving the stores drifting rudderless, and then slashing expenses to stem the bleeding until they can be put out of their misery later.
It still has the Amazon Fresh name: once you start cutting costs like that, it damages the reputation of the brand.

Rebranding the stores may help mitigate that.
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Re: Amazon Halts All New Amazon Fresh Just Walk Out Stores

Post by ClownLoach »

storewanderer wrote: January 28th, 2023, 11:03 pm How much business do you estimate Amazon Fresh will lose as a result of that policy?

I thought they were figuring delivery picking etc. costs into their (very weird) prices.

Also the question if they cleared out management is who made the decision to institute this policy change? This is a pretty significant change.
I wasn't aware that they instituted the same charge at Whole Foods at some point last year, so I'll guess Amazon is just copying whatever policy changes they did at WFM to improve profits?

I'd rather see lower shelf prices at Fresh (as they were when they opened) and a delivery charge, but I would personally expect that if I was a Prime member the fee would be waived. But that isn't the case so this weird decision devalues the already expensive Prime.

Also something weird tonight that could be a fluke but worth mentioning: I went to initiate a return on my Amazon app and as of tonight the Amazon Fresh nearby has now been completely removed as a return or pickup location. Not sure of its a system glitch but I had to choose between Kohl's, UPS store, Amazon locker, UPS drop off, UPS sticker for a charge. I don't like going to Kohl's and no WFM near me. Tried to place a new order and all the usual Amazon lockers were listed except the Fresh. So no option to pick up or return at the Fresh 3 miles from me? Seems weird. Until the last couple of months the recommendation for pickups or returns above all else was the nearby Fresh. Maybe more news is coming.
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