Plans for 2 metro Detroit Amazon Fresh grocery stores appear to be scrapped

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E-commerce giant Amazon appears to be rethinking some of its brick-and-mortar grocery store business.

Two properties in metro Detroit that had been reported as future locations for Amazon Fresh grocery stores are available again, according to a report from Crain's Detroit Business.

In Madison Heights, the location at 29411 John R is listed as available for sublease with Washington D.C.-based CoStar Group Inc. A local listing by Mid-America Real Estate lists a sublease for the same address of more than 42,000 square foot space as an anchor space. The space is in a shopping center that features a BJ's Wholesale and Texas Roadhouse, with Home Depot and Lowe's stores nearby.

Visit one of the many Amazon Fresh stores across the country.
Visit one of the many Amazon Fresh stores across the country.

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An Amazon Fresh reportedly planned for a Dearborn location, in a former Kroger store north of Michigan Avenue near Outer Drive, also appears not to be happening, as the location is up for lease. The Kroger store closed in May 2019.

“We look forward to being a helpful partner to the property owner, and will provide support in the pursuit of alternative opportunities and ensuring the property is secure and maintained during this transition," Jordan Twardy, economic development director for the City of Dearborn, said in an email to the Free Press. "The City of Dearborn is proactive in attracting development that meets our community’s needs, and we're confident this will result in a positive redevelopment outcome.”

Elsewhere, Amazon Fresh stores planned for the Minneapolis area were not completed, according to Progressive Grocer, and are being subleased.

Amazon Fresh stores are like a traditional grocery store, but more high-tech. Unlike the traditional grocery store experience where you walk in, grab what you need, get in line and check out, the focus at Amazon Fresh is to be able to walk in and walk out with the items you just picked up. The shopping experience is meant to be "seamless."

Plans for Amazon Fresh stores in metro Detroit have been reported for Livonia, Plymouth Township, Rochester Hills, Roseville, Shelby Township and St. Clair Shores, along with one in Grand Blanc.

In a December 2022 Free Press article, Kurt Heise, Plymouth Township supervisor, confirmed that an Amazon Fresh store is under construction in a retail area near the recently opened $90 million Henry Ford Hospital facility on Ann Arbor Road near Haggerty. Plans for the store were approved by Heise, the township planner and the township engineer.

Proposed plans submitted, Heise told the Free Press at that time, came from “Mendel Grocery." That is the code name that Amazon is known to use for its grocery stores.

Andy Jassy, Amazon's president and chief executive officer, wrote in an April letter to shareholders that while they are "pleased with the size and growth of our grocery business, we aspire to serve more of our customers’ grocery needs than we do today."

Jassy noted that most grocery shopping still takes place at actual stores.

"Amazon Fresh is the brand we’ve been experimenting with for a few years, and we’re working hard to identify and build the right mass grocery format for Amazon scale. Grocery is a big growth opportunity for Amazon."

The first brick-and-mortar store opened in the Woodland Hills suburb of Los Angeles in 2020. There are now more than 40 stores in several cities and states across the U.S.

Emails to Amazon seeking comments were not answered.

Contact Detroit Free Press food and restaurant writer Susan Selasky and send food and restaurant news to: sselasky@freepress.com. Follow @SusanMariecooks on Twitter. Subscribe to the Free Press.

This article originally appeared on Detroit Free Press: Plans for 2 metro Detroit Amazon Fresh stores appear to be scrapped

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