No plans to close two remaining Amazon Fresh supermarkets on LI

Amazon has closed its Plainview, Long Island Amazon Fresh supermarket less than a year after its opening, citing underperformance and an assessment of its local offering. This closure, which follows a prior grocery store failure in the same location and local reports of high prices and low foot traffic, prompts questions regarding the viability and market fit of Amazon's physical grocery store expansion strategy, even as the company maintains its other Long Island Fresh locations and local delivery services.

Analysis

OUR SPONSOR Centered on community, culture, and customer rewards, Planet Nugg delivers a one-of-a-kind experience for both first-time shoppers and seasoned connoisseurs. Shop in-store or enjoy fast, discreet delivery. Planet Nugg – 2043 Wellwood Ave, Farmingdale. Less than a year after opening, the Amazon Fresh supermarket on Manetto Hill Road in Plainview has closed its doors for good. The store’s final day of operation was Sunday. But there are no plans to close Amazon’s other two supermarkets on Long Island, in East Setauket and Oceanside, a company spokesperson told Greater Long Island. “Certain store locations work better than others, and after an assessment of our offering, we’ve decided to close our Amazon Fresh store in Plainview,” the spokesperson stated via email. By Monday morning, the Amazon sign on the building had already been taken down and brown paper covered the glass at the entrance. The store first opened last October in the space where Fairway Market was located, before it closed in 2020. One Plainview resident, who declined to give a name, told GLI she was not surprised by the closure. “It was never really busy enough and the prices were too high when they opened,” she said. “I think it turned people away.” Despite the closure, Amazon says grocery delivery is still available in the area, and customers can use the Amazon Fresh pickup location on Grumman Road in Bethpage. Top: Shoppers at the Plainview Amazon Fresh store on opening day on October 24, 2024. (Credit: Nick Esposito/file photo) Amazon has closed its Amazon Fresh supermarket in Plainview, Long Island, less than twelve months after its launch, citing location-specific underperformance following a strategic assessment. While the company stated this is an isolated decision and that its other two Long Island stores will remain open, the closure points to potential execution challenges in its physical retail strategy. Anecdotal evidence from local residents indicates the store suffered from low foot traffic and a perception of high prices, suggesting a possible misalignment with local consumer demand. This specific location has a history of retail failure, as it previously housed a Fairway Market that closed in 2020, raising questions about the site's viability. Although the financial impact on Amazon is negligible, this event highlights the difficulty of penetrating the competitive brick-and-mortar grocery market and suggests that the company's expansion may face further localized headwinds. Amazon's continuation of grocery delivery and pickup services in the area demonstrates its commitment to a multi-channel grocery strategy, even as its physical store concept is being refined.

Key Decisions for Investors

• Investors should monitor for any pattern of similar closures, as this single event could be an early indicator of broader execution challenges in Amazon's high-capital physical grocery expansion.
• The direct financial impact on Amazon is negligible, so this event does not warrant a change in thesis for long-term holders, but it does highlight the low-margin, competitive nature of the brick-and-mortar grocery business.
• Consider this a data point on the difficulty of translating e-commerce dominance into physical retail success; the valuation of Amazon's grocery ambitions should factor in the risk of slow adoption and location-specific failures.