Amazon closes more of its cashierless convenience stores
Amazon continues to scale back efforts around its cashierless checkout technology, Just Walk Out.
Amazon's Cashierless Checkout technology, Just Walk Out, Slows Down: What's Behind the Move
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Amazon, the e-commerce giant, has been gradually scaling back its efforts around its cashierless checkout technology, Just Walk Out, in recent months. The company has closed three of its Go convenience stores in New York, leaving only 17 stores across the nation. This significant reduction in the number of stores operating under the Just Walk Out technology marks a shift in Amazon's retail strategy.
The Just Walk Out technology, introduced in 2018, uses AI systems to track what customers pick up, allowing them to buy items without ever having to formally check out with a cashier. Initially, the technology was seen as a game-changer in the retail industry, but since 2023, Amazon has cut the number of Go storefronts it operates nearly in half.
In addition to closing stores, Amazon has also pulled the Just Walk Out technology from its grocery stores earlier this year. The company cited a focus on smaller grab-and-go shops as the reason for this decision. However, it's worth noting that Amazon still licenses the Just Walk Out technology to third-party convenience stores, and the company remains committed to the Go format and technology as a whole.
The decision to scale back on Just Walk Out technology comes as Amazon focuses on other areas of its business. The company has been investing heavily in its grocery delivery service, Amazon Fresh, and has also been expanding its physical retail presence through the acquisition of Whole foods market. This strategic move allows Amazon to allocate resources to other initiatives that align with its long-term goals.
Despite the scaling back of Just Walk Out technology, Amazon's commitment to cashierless checkout remains strong. The company has been testing the technology in various formats, including its Amazon Go convenience stores and its Amazon Fresh grocery stores. The technology has been well-received by customers, who appreciate the convenience and speed of checkout.
Amazon's decision to scale back on Just Walk Out technology is a strategic move to focus on other areas of its business. While the technology has been successful, the company is choosing to prioritize other initiatives. However, Amazon's commitment to cashierless checkout remains strong, and the company will likely continue to innovate and improve this technology in the future.
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