The long-anticipated Amazon Fresh store at the 270 Center on Shady Grove Road will not come to fruition. All signage has been removed from the building in stages, over the last 48 hours. This is a reversal of not only Amazon's strategy of using bricks-and-mortar stores to expand its warehousing capacity for same-day deliveries, but also of CEO Andy Jassy's recent bullish remarks that the e-commerce giant would "go big" on physical grocery stores in 2023.
Canceling the Shady Grove Road store, which is on the border between Rockville and Gaithersburg, represents a major financial loss for the company. The store was fully built-out inside as of late summer 2022, and it has sat empty with bare shelves since. That has been the case with several other Amazon Fresh stores that were on the verge of opening around the country.
Now the question would be, will Amazon use its lease of the former office supply store for another grocery or retail concept, or will it break its lease at 270 Center at further cost? Jassy said the firm had settled on a format they want to "go big" with, but he did not say if "Amazon Fresh" was that format. Montgomery County has two existing Amazon Fresh concept stores, at the Collection at Chevy Chase and Chevy Chase Lake.
The cancellation of this store is the latest retrenchment move by Amazon. It recently laid off a substantial number of employees, and has "paused" construction of several projects at its HQ2 property in Arlington, Virginia, including the centerpiece Helix building that was scheduled for a 2025 delivery.
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