Amazon initially introduced cashier-less technology at its grocery stores, touting it as the future of retail. However, the company has decided to scale back its “Just Walk Out” technology at Amazon Fresh locations in the US. Instead, Amazon is rolling out Dash Cart, a “smart shopping cart” that allows customers to scan groceries, access online shopping lists, and check out their items. The company found that customers were not fully embracing cashier-less technology, especially in grocery stores where they buy larger quantities and must perform additional tasks like weighing produce.
Despite the setback at its grocery stores, Amazon will continue to use the Just Walk Out technology at Amazon Go convenience stores, smaller format Fresh stores in the UK, and at third-party locations such as sports stadiums and college campuses. The company has also been reducing the number of humans involved in monitoring accurate checkouts, with data associates playing a key role in validating shopping visits. Additionally, Amazon One palm recognition, the app, or a credit/debit card are used for customers to enter Fresh stores, where sensors, cameras, and deep learning tools track what customers pick up and charge them accordingly.
In an effort to address the challenges faced at Amazon Fresh stores, Amazon is introducing self-checkout kiosks and assisted checkout options at these locations as they transition to using Dash Cart. Other retailers, including Dollar General, Walmart, and Costco, are also rethinking the reliance on self-checkout due to higher merchandise losses from customer errors and shoplifting. Amazon’s decision to pause expansions of Amazon Fresh stores starting in 2023 reflects the company’s focus on finding a retail format that resonates with customers before further growth.
Since its acquisition of Whole Foods in 2017, Amazon has been incorporating cashier-less checkout in its stores, including full-sized Amazon Fresh locations. Despite setbacks and challenges, Amazon has continued to experiment and refine its Fresh stores, redesigning locations in Chicago and Southern California to reflect customer preferences. CEO Andy Jassy emphasized the importance of finding a format that resonates with customers before expanding physical Fresh stores. The introduction of new name brands, quick meal options, self-checkout kiosks, and Dash carts in select locations shows Amazon’s commitment to evolving its grocery retail strategy.
