Is Amazon Fresh still Opening in The Lakeview Collection?

After a yearlong pause, Amazon has resumed opening Fresh supermarkets, although many locations remain unoccupied according to CNBC. In August, hundreds of eager shoppers lined up at a new Amazon Fresh store in a Philadelphia suburb. The grand opening was met with enthusiasm, marked by a person in a banana costume energizing the crowd and staff handing out free cold brew samples.

This event had been long-awaited, as the Fresh store in Bensalem, Pennsylvania, had appeared ready to open since 2022. However, it remained vacant for months, with only Amazon’s logo overlooking an empty parking lot. “I thought it would open sooner, but it didn’t,” said Joe Knowles, council president of Bensalem Township. “Then suddenly, it was ready.”

The Bensalem store is part of a small wave of Fresh supermarkets that Amazon has opened in recent months, the first since halting its expansion more than a year ago. Since June, Amazon has launched seven other stores across California, Illinois, Maryland, New Jersey, and Virginia, with more locations expected this year and beyond. Five redesigned stores in Illinois and California also opened this week.

These new openings mark a shift in Amazon’s attempts to become a major player in the grocery industry—a pursuit that began 17 years ago and peaked with the $13.7 billion acquisition of Whole Foods in 2017. Despite this, Amazon still holds only 1.4% of the U.S. grocery market, far behind Walmart’s 23.6% and Kroger’s 10%, according to Numerator. Amazon’s grocery portfolio includes Fresh, Go convenience stores, Prime delivery, and, as of this year, an unlimited grocery delivery subscription. It also launched a new grocery private label, Amazon Saver, featuring low-priced items like deli meats and pancake syrup.

The first Fresh supermarket opened in Los Angeles in September 2020, during the pandemic, aiming to offer more affordable prices than Whole Foods. These stores featured innovative technologies like cashierless checkouts, package drop-off counters, and Alexa-enabled recipe suggestions. By early 2022, Amazon had opened 46 Fresh locations worldwide. However, expansion plans were curtailed by CEO Andy Jassy’s cost-cutting measures, as Amazon dealt with economic challenges and downsizing. Some stores closed, and Jassy paused further openings until a successful store format could be identified.

Now, with job cuts mostly behind it, Amazon is once again investing in Fresh, refining its stores and introducing a redesigned format in select California and Illinois locations last year. Jassy emphasized the need for a stronger brick-and-mortar presence in the grocery market, as only 11% of the $1.6 trillion U.S. grocery market sales occurred online in 2022, according to Jefferies data.

The redesigned Fresh stores feature more colorful layouts and Krispy Kreme donut stands. Amazon has also replaced its cashierless checkout technology with Dash Carts, which track purchases as customers shop. Early feedback has been promising, with increased customer satisfaction and purchasing at the revamped locations. Still, 22 Fresh stores remain vacant or unopened despite completed construction, with some landlords filing lawsuits alleging Amazon breached contracts by terminating leases.

One unopened location is in Rancho Mirage, California, where Amazon began remodeling in 2021. City officials now expect the store to open in 2025. Council member Ted Weill commented on Amazon’s deep pockets, suggesting that the company’s financial power allows it to leave buildings idle for years if necessary.

Despite some setbacks, Amazon recently opened a Fresh supermarket in Roseville, California. While the store boasted an impressive selection, some found it lacking warmth or character, with one analyst likening it to a “stainless steel wine cellar.” Nevertheless, Amazon continues to push forward in the grocery industry, seeing potential synergies with its broader retail strategy.

It is worth noting that the original retail space brochure for this space is no longer listed, so assume Amazon should be coming in shortly.

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