Amazon Abandons Cashier-less Tech in Certain Retail Outlets
In a move that could redefine the retail landscape, Amazon, the tech giant, initially deployed its innovative "Just Walk Out" technology in its Amazon Go stores, with plans for upscale grocery chains like Whole Foods (owned by Amazon), as well as other supermarkets and convenience stores, to potentially adopt this technology in the future. Large retailers such as Walmart and Target might also consider similar technologies as they compete in the evolving grocery and retail market.
The technology, which uses shelf sensors, ceiling-mounted cameras, and algorithms to determine what a consumer has bought and charge them automatically when they exit the store, was developed over a decade ago, with Jeff Bezos serving as the then-chief executive. Dozens of Amazon Go-branded convenience stores were opened, with the Just Walk Out technology, aiming to create a faster shopping experience without the need for checkout.
However, the receipting aspect of the technology proved unpopular, with shoppers receiving receipts digitally after they shop. The receipts could take several hours to arrive and were deemed impractical for larger shops. Additionally, some consumers felt uncomfortable with the entry gates or the transformation of traditional grocery stores into high-tech vending machines. These reported issues, as well as consumer preferences, contributed to the discontinuation of the cashierless system in new stores.
Despite this, Amazon will continue to license the technology to other retailers. Smaller stores in Britain will retain the cashierless system, and Amazon Go stores will still feature the Just Walk Out systems. The decision provides insights for other companies, particularly retailers, about consumer preferences.
The cashierless system debuted in 2018 at Amazon's Seattle headquarters in a convenience store inside the lobby. The technology was later installed in Fresh Stores and Whole Foods Market locations. The initial deployment of the technology in Amazon Go stores marked a significant step forward for Amazon's physical store presence.
While consumers generally prefer speed and convenience, technology that replaces traditional shopping elements and makes them feel alienated or intimidated is not always desirable, especially in physical store settings. This decision by Amazon underscores the importance of understanding and catering to consumer preferences in the evolving retail landscape.
