On a sweltering August afternoon, eager shoppers gathered outside Amazon Fresh’s long-awaited store opening in Bensalem, Pennsylvania. After nearly a year of delays, the store finally welcomed customers with free cold brew samples and an upbeat atmosphere. This event marks a significant moment in Amazon's grocery expansion, with the company launching several Fresh stores across the U.S. after halting new openings in 2022.
Amazon has been chasing the grocery market for years, from its massive $13.7 billion acquisition of Whole Foods in 2017 to its more recent ventures with Fresh supermarkets. However, it hasn’t been smooth sailing. The company's grocery expansion hit a wall when CEO Andy Jassy decided to pause Fresh store openings as Amazon struggled to find the right format that resonated with shoppers. Now, after refining the concept with redesigned layouts and features like Dash Carts, the company is slowly reentering the market.
Even with these new openings, Amazon’s footprint in the U.S. grocery sector remains small, holding just 1.4% of the market compared to giants like Walmart, which commands 23.6%. Amazon is betting that a mix of physical stores, same-day delivery for Prime members, and affordable in-store options like its newly launched Amazon Saver private label will help it expand further.
But challenges persist. Some Fresh locations that were built still sit vacant, leading to legal battles with landlords. At least 22 stores across the U.S. remain unopened, sparking multiple lawsuits claiming breach of contract. Despite these setbacks, Amazon remains committed to scaling its grocery presence, confident that its revamped stores will attract more customers over time.
As Amazon continues to fine-tune its approach to grocery retail, the company is focused on making Fresh stores a key part of its broader strategy. With more locations slated to open in the near future, Amazon’s push into the competitive grocery market is far from over.
