Amazon Fresh pulls plug on planned Metro Detroit stores
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The exterior of an Amazon Fresh store in Federal Way, Washington. Photo: David Ryder/Getty Images
Several Amazon Fresh stores planned in Metro Detroit won't open after all, with the retail giant having abandoned the venture last month.
Why it matters: That leaves sites in Troy, Roseville and other suburbs in limbo while a local broker looks for replacement tenants.
The big picture: Creative Commercial Real Estate Inc., a Rochester-based brokerage house, has been tapped to find occupants for at least five local properties where Amazon Fresh was supposed to open, Crain's Detroit reported.
Zoom in: One of the sites, at 32070 Gratiot Ave. in Roseville, is a former Toys "R" Us that has been updated with a gray facade and bright green accents familiar at other Amazon Fresh locations.
What they're saying: Amazon redeveloped the site and obtained a certificate of occupancy so it could open, Roseville city manager Ryan Monroe tells Axios Detroit.
- City officials haven't heard directly from the company, but Monroe assumes the space will be leased out to someone else.
- "We would certainly like something in there for our residents to use."
Catch up quick: Amazon last month announced it was closing its Amazon Fresh and Amazon Go physical stores and shifting resources toward Whole Foods Market expansion and faster grocery delivery.
- Amazon previously confirmed to Axios that 57 Fresh stores and 15 Go stores are closing, with most locations set to have shuttered Feb. 1.
- The move underscores Amazon's ongoing effort to refine its grocery strategy — even as the business now generates more than $150 billion in annual sales.
State of play: The five once-planned Amazon Fresh locations are scattered across the region, per Crain's:
- Troy, 662 E. Big Beaver Road
- Livonia, 29270-29350 Plymouth Road
- Plymouth, 41128-41496 Ann Arbor Road
- Rochester Hills, 2627-2951 S. Rochester Road
- Roseville, 32070 Gratiot Ave.
What's next: Michael Dudash of Creative Commercial Real Estate told Crain's his goal is to find one company for all the sites, adding that Amazon is "paying a lot of money in rent" on the unused locations.
- Axios reached out to Dudash, but he was unable to speak without Amazon's permission.
- In response to an inquiry about local plans, Amazon directed Axios Detroit to its Jan. 27 statement about the Fresh closures and Whole Foods expansion.
- "They are motivated because this is not a positive thing on their balance sheet. It's negative, negative, negative hundreds of thousands of dollars a month," Dudash told Crain's.