Much-anticipated Amazon Fresh store in Woodland Park on pause. Here's why

WOODLAND PARK — The signs may be up, but the Amazon Fresh market anticipated to open in the Plaza 46 building once home to a Fairway supermarket continues to be delayed.

The giant online retailer's efforts to expand its physical footprint seem to have hit a snag. During its recent quarterly earnings call, Amazon announced it was pausing efforts until further notice to open five planned Amazon Fresh sites in New Jersey.

Why is Amazon Fresh taking a pause?

More than two years ago, Amazon announced it would open its Route 46 location in the borough, which was to be among the first of its new line of supermarkets featuring 21st century innovations including Dash Carts, which do not require a visit to a cashier.

Borough officials reached out to Amazon this week and were given a letter from Amazon's Economic Development unit that read:

"We regularly review the Amazon Fresh pipeline and we've learned a lot since we first opened our first store in 2020. We are taking the time right now to focus on our existing Amazon Fresh stores in the U.S." The letter was signed by Gwendolyn Thames.

Amazon Fresh paused in NJ

That is in line with Amazon's announcement last month that it would be pausing its rollout of Amazon Fresh grocery stores across the country.

"We've decided over the last year or so that we're not going to expand the physical fresh doors until we have that equation with differentiation and economic value that we like, but we're optimistic that we're going to find that in 2023," said Andy Jassy, Amazon's chief executive officer.

With the exception of Amazon Fresh in Paramus, Amazon's decision to stand down has frozen its stores under development across New Jersey. Besides Woodland Park, stores are in various stages of completion in Eatontown, Old Bridge, Lodi and Holmdel.

There was also discussion among Clifton officials of a possible Amazon Fresh on the ON3, the former Roche site on Route 3.

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'Soulless' stores?

Supermarket pundits said Amazon Fresh is having a difficult time catching on with consumers.

The stores "tend to be characterized as soulless," David Bishop, partner and research lead at Bricks Meets Clicks, a retail consulting firm, told the Asbury Park Press. The shelves and ceilings are black. The stores are described as "cold" and "dark."

"It is not an inspirational experience as if you were going to a Wegmans or a ShopRite," Bishop said.

Supermarket analyst Matthew Casey, the owner of Matthew P. Casey & Associates in Rahway, told the Asbury Park Press that Amazon Fresh locations are "poorly producing stores." He said in his store visits, employees assembling online orders for grocery deliveries outnumbered actual customers.

"They appear to be a 1970s supermarket with 2022 technology," Casey said. "They have their Alexa at the end of the aisle where you can ask Alexa where the maraschino cherries are. Meanwhile, they don't have very knowledgeable supermarket people working in the stores."

Hoping for the best

Meanwhile, Woodland Park Mayor Keith Kazmark said he remains hopeful that Amazon will utilize the 59,350 square feet of space located off Route 46 and Browertown Road.

Besides the obvious tax implications — the city gets its taxes for the assessed value of the whole shopping complex, which also features a Kohl's — the store if opened is estimated to bring in about 100 employees.

Last month, Amazon held a ribbon cutting on its 205,000-square-foot distribution center with a pickup and returns center on McBride Avenue in the borough on the former Kearfott Guidance and Navigation corporation site.

This article originally appeared on NorthJersey.com: Amazon Fresh stores in NJ, including Woodland Park, on pause