New York – Amazon is making significant changes to its Amazon Fresh grocery stores by removing its Just Walk Out technology in an effort to revamp the chain and enhance customer satisfaction. This technology, which allowed customers to pay without waiting in line, will be replaced by smart carts that offer real-time spending updates and the convenience of skipping the checkout line.
During the redesign of Fresh stores in the past year, Amazon spokesperson Carly Golden noted that customer feedback played a crucial role in the decision to introduce smart carts. Customers expressed a desire to view receipts and savings while shopping, prompting the shift away from the Just Walk Out system. The new smart carts will not only allow customers to skip the checkout line but also provide them with real-time spending information.
The decision to remove Just Walk Out technology was initially reported by The Information. Seattle-based Amazon operates numerous Fresh grocery stores across the country, with a significant presence in California, Illinois, Virginia, and Washington state. In addition to Fresh stores, Amazon also runs cashier-free convenience stores under the Amazon Go brand and owns Whole Foods, acquired in 2017 for $13.7 billion.
Despite high expectations for Amazon’s impact on the grocery sector, the company has faced challenges in finding a winning strategy. In a letter to shareholders in 2023, Amazon CEO Andy Jassy acknowledged the need to refine the company’s approach to physical grocery operations. Amazon has closed underperforming Fresh and Go stores and paused the expansion of Fresh stores, focusing instead on selective openings and store renovations.
Amazon recently reopened three Fresh stores in Los Angeles, California, as part of its strategic shift in grocery store operations. The company is now concentrating on judiciously expanding its Fresh stores and upgrading existing locations. While Just Walk Out technology will no longer be available in Amazon Fresh stores, it will continue to be offered in Amazon Go stores, select smaller Amazon Fresh stores in the U.K., and to third-party retailers.
Overall, Amazon’s decision to retire the Just Walk Out technology reflects the company’s commitment to improving the customer experience at its Fresh stores and adapting to evolving consumer preferences in the grocery industry. The introduction of smart carts is expected to offer customers greater convenience and transparency while shopping, signaling a new chapter in Amazon’s grocery store innovation.