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RIP Amazon Fresh

RIP Amazon Fresh
Welcome back to On The Ground, your CRE newsletter powered by DealGround.
Amazon Fresh is dead.
All 72 stores — 57 Fresh + 15 Go — closed.
Honestly? This one’s surprising.
This is Amazon.
They own Whole Foods Market.
They know grocery.
So how did they miss this badly?
Word is the Amazon Fresh team and Whole Foods team were siloed. No shared ops. No knowledge transfer.
Odd if true.
We’ve Watched This Movie Before
Haggen → expanded from 18 local to over 160 multi-state locations in a single transaction → bankruptcy
Fresh & Easy Neighborhood Market (by Tesco) → lack of customer understanding → questionable site selection → shutdown
Grocery is brutally hard.
Thin margins. Fierce competition. No room for mistakes.
Even giants lose.
What This Means for Landlords
This isn’t good news.
Yes, Amazon will pay rent.
But:
Dark anchors kill traffic
Shop tenants struggle
Values are crushed
Refinancing a dark box - good luck
A+ locations will survive.
A few might get Whole Foods conversions (the luckiest of the lucky).
It’s going to take time for everyone else.
Real Example
Fontana, CA
Amazon Fresh in Fontana sold for $17.8M (5.41% cap) in April 2025
Rent: $962k/year
40,100 SF → $2.00/SF/month
That’s top-of-market.
If it stays dark, the shop tenants are dead.
Bottom Line
Every few years, someone thinks they can challenge the legacy grocers. It’s a losing bet.
Fresh & Easy - RIP
Haggen - RIP
Amazon Fresh - RIP
Same lesson:
Operations matter
Site selection matters
Real estate quality is everything
👉 If you want the full thoughts and deeper breakdown, read it here: [RIP Amazon Fresh]
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Happy hunting. LFG!
The DealGround Team
