Amazon Fresh was primed to be the anchor store at The Shops at Town Square at Allentown and Forty Foot roads in Towamencin, but now, due to a volatile economy, that plan is dead in the water.
Alas, there will be no grocery store or big-name retailer opening at the shopping center anytime soon.
“The township was notified by the owner and developer of the shopping center, Philadelphia Suburban Development Corporation, of the intent of the parent company of the proposed grocery retailer to change their course of business,” said Towamencin Township Supervisor Laura Smith. “What that means is the grocery store everyone believed to be Amazon Fresh is not coming to fruition.”
PSDC owner Mark Nicoletti said Amazon had recently decided to put on hold and re-evaluate its strategic plan for the entire Amazon Fresh division.
“First, we would like to thank and commend the Towamencin Township supervisors for their leadership and support on behalf of PSDC’s efforts to redevelop the center. Covid, inflation and the recent disruption in capital markets have certainly added to our challenges,” Nicoletti told North Penn Now in an exclusive interview. “And we definitely took a hit when Amazon recently decided to basically put on hold and reevaluate their strategic plan for the entire Amazon Fresh division.”
Nicoletti said Planet Fitness, however, is outperforming expectations.
“We have other new very popular stores and restaurants in our pipeline,” he said. “Most importantly, the significant investment we’ve made in our beautiful new exterior renovations has been very well received.”
Last month, CNBC reported that Amazon is closing some of its Amazon Fresh and Amazon Go stores, in order to curtail expenses. During a recent earnings call, CEO Andy Jassy reported that it is pausing expansion of Fresh stores to “examine the business and see if it resonates with customers” and until “it can find a format that differentiates the company’s offering from others in the industry.”
Amazon’s finance chief Brian Olsavsky said the company was undertaking an assessment of its grocery portfolio and decided to “exit certain stores with low-growth potential.” According to CNBC, Amazon, which owns the profitable Whole Foods, took a $720 million impairment charge in the fourth quarter as a result.
Smith still has high hopes for the shopping center.
“I am disappointed and frustrated by this change but have faith another anchor will be secured by PSDC,” she said.
Nicoletti did not respond by press time to a request for an update on the approved Chipotle and Mattress Warehouse construction.
The announcement of a lease being signed with a grocery store occurred 10 months ago, when the township planning commission recommended preliminary and final land development approval to the board.
In October, Nicoletti appeared before supervisors to update them on the development of the shopping center. At that time, he placed the blame on the township for the delay in progress, citing a “very complicated” procedure and a “grueling” permitting process.
At the same meeting, Nicoletti had revealed that there was an agreement with a company to bring in a grocery store, but could not reveal the name due to a non-disclosure agreement.
“They are not letting us (reveal the name) until they are close to opening it,” he said in October. “They use the mystery name ‘Mendel,’ but they are not ‘Mendel.’ There is no company named ‘Mendel.’ They go by that during this process. It’ll be worth the wait.”
“Mendel’s Market” was the secret code name used by Amazon Go two years ago when it was developing its market in Havertown, according to Fox 29’s Chris O’Connell.
See also:
Signs Point to Progress at Towamencin Town Square — Though Not Mystery Market
Grocery Store Signs Lease for Former Genuardi’s Market Location in Towamencin
Chipotle, Mattress Warehouse Confirmed in Towamencin Shopping Village Revitalization
Planet Fitness Coming to Former Sears Hardware in Towamencin Following Health Club Use Approval
The Store Outfitters in Towamencin to Close After Nearly 70 Years
Multiple Businesses Eyeing Locations at Towamencin Village Shopping Center
