Amazon Faces Lawsuits from Landlords Over Proposed Amazon Fresh Stores
Amazon is currently embroiled in legal battles with landlords over properties where it had planned to open Amazon Fresh grocery stores. One of the latest lawsuits involves a lease on Long Island that Amazon allegedly attempted to back out of. The New York Post reported on Saturday that Amazon signed a lease with Salisbury Partners for a storefront in East Meadow in April 2022.
According to Mark Sagliocca, whose family manages Salisbury and the property in question, Amazon continuously met with them for months, but in November 2022, they began nitpicking about details such as colors and lighting. Sagliocca believes this was a stall tactic. Salisbury and Amazon are set to appear in court on September 22, with the developer suing Amazon for $37 million, including unpaid rent on the property. Amazon argues that it has no obligation to pay rent for the proposed store.
Similar lawsuits have been filed against Amazon by landlords in New Jersey, Philadelphia, and Seattle. In New Jersey, a landlord is suing Amazon for $10 million after investing in preparing one of its properties for an Amazon Fresh store. Amazon has faced challenges with its Fresh stores, having canceled plans for some locations and laid off hundreds of store workers. However, CEO Andy Jassy expressed the company’s continued belief in the potential of the grocery industry.
Amazon has also attempted to terminate leases for Fresh stores in other parts of the country. In May, the company listed six properties for sublease in the Minneapolis/St. Paul area. Despite these setbacks, Amazon remains committed to refining its grocery strategy and finding a mass grocery format that is worth expanding widely.
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