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e-Commerce

Amazon Trims Cashierless Stores, But Tech Marches On

Rary Maharani
Last updated: October 11, 2024 1:14 am
Rary Maharani
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  • Amazon closes three more cashierless Go stores due to high lease costs
  • The company refocuses on licensing its Just Walk Out technology
  • Amazon remains committed to the Go format despite store closures

Contents
Checkout Time for Some Go StoresEconomic Realities BiteWalking Out, But Not Giving Up

Checkout Time for Some Go Stores

Amazon has pulled the plug on three more of its Go convenience stores in New York, bringing its nationwide total down to 17.

These AI-powered shops, which allow customers to grab items and leave without checking out, have seen their numbers nearly halved since 2023.

Economic Realities Bite

The e-commerce giant cited lease costs as the reason for these closures. Despite the stores’ good performance, Amazon couldn’t make the economics work. This move follows the company’s earlier decision to remove Just Walk Out technology from its next-generation grocery stores.

Walking Out, But Not Giving Up

Despite the closures, Amazon remains committed to its Just Walk Out technology. The company continues to license the system to third-party convenience stores, focusing on smaller grab-and-go shops rather than its own locations.

This shift suggests a strategic pivot in how Amazon deploys its innovative retail technology.

TAGGED:div5

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