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 reportedly attempted to back out of. The New York Post reported 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 raised issues about details such as colors and lighting, leading him to believe that it was a stall tactic. Salisbury and Amazon are scheduled to appear in court on September 22, with the developer suing Amazon for $37 million, including unpaid rent on the property. Amazon, on the other hand, claims that it has no obligation to pay any rent for the proposed store.
Similar lawsuits have also been filed against Amazon by landlords in New Jersey, Philadelphia, and Seattle. Despite opening its first Fresh store in 2020 and currently operating around 44 stores, Amazon has canceled plans for some Fresh locations. Additionally, the company laid off hundreds of Amazon Fresh store workers this summer. CEO Andy Jassy expressed that while Amazon sees potential in the grocery sector, they are still searching for a mass grocery format that is worth expanding broadly.
In other instances, Amazon has attempted to terminate leases for Fresh stores in different parts of the country. For example, in May, the company listed six properties for sublease in the Minneapolis/St. Paul area. It seems that Amazon is reevaluating its grocery strategy and making optimization decisions regarding its store locations.
Source: Business Insider