POWAY, Calif. (KGTV) — The first Amazon Fresh grocery store location in San Diego County has been in the works for years. But while it appeared the store was just about ready to open in the spring, its doors have remained closed, leaving residents in the Poway neighborhood flummoxed.
“I’m just dying of curiosity," said Rey Cano.
“It’s been a big disappointment," said Alexis Vu.
The signage was installed in April, including designated parking spots for touchless grocery pick-up and corrals for the carts. But while everyone ABC 10News spoke with said they were excited to try out the high-tech concept, in which scanners connected to the Amazon app track what's in a customer's shopping cart and bill automatically, avoiding the need for check-out lines, they all said they are tired of waiting and wondering when the store will open.
“What the heck? We have this thing we’d like to use and it’s useless. We can’t do anything," said Ashley Yuhas. “It’s pointless. The community can put something else there that could be useful to the people.”
When reached by ABC 10News, Amazon declined to answer questions or confirm if or when the store would open.
San Diego State University professor Miro Copic, an expert on the grocery industry, says the Poway location is one of several around the country that Amazon has built without opening, jokingly referring to them as "zombie stores." He speculates that Amazon is currently pausing expanding its grocery operations while it weighs several factors. That includes anticipating a possible recession in 2023, with the benefits of waiting to open until an economic recovery.
Copic also says Amazon is struggling with its real estate footprint around the world, including its grocery division. It's possible the company is making adjustments to its business model and technology before opening new locations.
“It’s frustrating for the community. It’s frustrating for consumers. They’re excited to try this new shopping experience. But it is the least negative of the options they have," Copic said. "The worst thing to do is they open the store, big fanfare, then six months later they shut it down.”
Copic says if they are waiting to decide when or whether to open, it remains cheaper in the short-term to keep paying rent and utilities than it would be to buy out the property's lease and pay severance to employees. While that could be feasible indefinitely, Copic suggests the company will want to make an ultimate decision about whether to continue to expand and open the new locations, or cut its losses at some point in the relatively near future, perhaps in the first six months of 2023.
