When Amazon introduced cashier-less technology, it was seen as the future of retail. However, Amazon is now scaling back its “Just Walk Out” technology at its grocery stores. Instead, Amazon is replacing it with Dash Cart, a “smart shopping cart” that allows customers to scan groceries, link to online shopping lists, and check out their groceries. Customers have not fully embraced the cashier-less technology, especially in grocery stores where they buy larger quantities and face tasks like weighing produce. Amazon is exploring using the technology in smaller stores like Amazon Go convenience stores, where it may be more seamless.
Amazon is removing the Just Walk Out technology from its US Amazon Fresh grocery stores, but will continue using it at Amazon Go stores, smaller format Fresh stores in the UK, and third-party locations like sports stadiums and college campuses. The company has been experimenting with the technology, and is reducing the number of human reviews while developing it further. Customers accessed Fresh stores using Amazon One palm recognition, the app, or a credit/debit card. Sensors, cameras, and deep learning tools tracked what customers took off the shelf, automatically charging them. Amazon plans to install self-checkout kiosks and assisted checkout options at Fresh locations that switch to Dash Cart.
Retailers like Dollar General, Walmart, and Costco are also reevaluating their use of self-checkout systems, as they have found that they can result in higher merchandise losses due to customer errors and shoplifting. Amazon, which has more than 40 Amazon Fresh locations in the US, introduced cashier-less checkout in Whole Foods stores after acquiring the chain in 2017. Despite challenges in getting customers to use Amazon Fresh stores, the tech giant has been expanding the concept. However, in 2023, it announced a pause on Amazon Fresh store expansions in order to experiment and find a format that resonates with customers.
In response to the challenges faced by Amazon Fresh stores, the company has redesigned locations in Chicago and Southern California. For example, in two Chicago-area stores, Amazon added more name brands, quick meal options, self-checkout kiosks, and Dash carts. Amazon CEO Andy Jassy noted that the company is conducting experiments in these stores to find a format that works for customers before expanding further. The changes reflect a shift in Amazon’s strategy for its physical retail presence. Overall, Amazon’s move away from full automation in its grocery stores demonstrates the complexities and challenges of implementing cashier-less technology in the retail industry.