As Steve Hewett, VP at Capgemini, points out, the process can be clunky if you don’t have the app already downloaded and set up with payment information.

However, the reality for a first-time shopper was a little less frictionless. The experienceĪmazon’s pitch is simple: visitors scan their smartphone when entering, they collect what they need and are automatically billed as they leave and later emailed a receipt. The stores also contain a counter where online orders can be delivered and returned. Cutchin covers business in the Coachella Valley.Out to prove it’s not just a gimmick with a few products to choose from, the stores stock hundreds of own-brand items, as well as a wide range of third-party products from brands including Morrisons and Booths. “I believe that, at some point, that Amazon Fresh will open in that space,” Weill said. While he said it was impossible to say when that opening date would be, Weill said the amount of money Amazon had already invested in redesigning and expanding the store, the ongoing rent they are paying on the space and the general viability of the grocery business in that location made him relatively confident in the project’s future. Rancho Mirage Councilmember Weill told The Desert Sun that Amazon has continued to provide reassurances that they will open the Rancho Las Palmas Amazon Fresh “at some point.” “From a city perspective, there is nothing preventing them from opening,” Codding wrote in an email. But I think that we have a very significant opportunity in the grocery segment.” What’s coming next?Īmazon Fresh’s Certificate of Occupancy - the final regulatory document needed to open the supermarket - was submitted in May and approved by the City of Rancho Mirage, according to city spokesperson Gabe Codding. “And when we do find that equation, we will expand it more expansively.

“We see some encouraging signs,” he added. “We're doing a fair bit of experimentation today in those stores to try to find a format that we think resonates with customers,” Jassy said on the call. Despite the apparent issues with the offering, Jassy struck an optimistic tone in the call regarding the tech giant’s future in the grocery business. The company announced plans to close some locations with “low growth potential” on the call, but did not provide further details on the specific locations or timeline.Īn Amazon representative declined to provide further details on the Rancho Mirage Amazon Fresh’s status, but pointed to Jassy’s comments in the February call. On the call, Amazon executives reported a $720 million impairment charge - referring to a loss in the value of an asset - in the fourth quarter of last year, primarily stemming from Amazon Fresh and Amazon Go (Amazon Go is a convenience store chain utilizing the same “Just Walk Out” technology). Why hasn’t the store opened yet?Īmazon has instituted a pause on opening new Amazon Fresh locations as it searches for improved “differentiation and economic value” for the offering, according to CEO Andy Jassy in a February earnings call. Rumors swirled that an Amazon Fresh was coming to the former Stein Mart at Rancho Las Palmas - left vacant following Stein Mart’s bankruptcy in 2020 - for nearly a year before signage confirming the plans was erected in November.Īt the time, Rancho Mirage Councilmember Ted Weill cited the complexity of the supermarket’s “extensive electronics” for the slow rollout, as well as the addition of a 10,000-square-foot former grocery store area on the east end of the building. The stores also have traditional checkout lanes for those who prefer them. Anything the customer puts into their cart while in the store is automatically added to their bill and is removed if they replace it on the shelf. The project generated significant media buzz for its potential to revolutionize the supermarket experience by effectively removing the entire checkout process.Īmazon's ' Just Walk Out' technology allows people to activate their Amazon accounts or credit cards at the entrance to Amazon Fresh stores. How did we get here?Īmazon Fresh, which was launched by Amazon in 2007 as a grocery delivery service, began rolling out physical stores in 2020. Here’s what to know about what stage the project is at and what might be coming next. Despite having all necessary city approvals and an outward appearance of completion, the high-tech supermarket’s debut is on pause amid a broader rethink at Amazon about the direction of its grocery business. Seven months after Amazon Fresh signage went up on the former Stein Mart building at the Rancho Las Palmas shopping center in Rancho Mirage, the store remains unopened.

Amazon fresh locations