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- Amazon is closing all of its Amazon Go and Amazon Fresh stores, refocusing its efforts on its Whole Foods Market chain as it re-evaluates the viability of cashierless...
- Amazon announced on January 29, 2024, that it woudl be closing all 65 Amazon Fresh and Amazon Go stores across the United States, shifting its focus to expanding...
- The decision reflects a reassessment of the economic viability and scalability of the cashierless "Just Walk Out" technology pioneered by Amazon. While the technology will continue to be...
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Amazon is closing all of its Amazon Go and Amazon Fresh stores, refocusing its efforts on its Whole Foods Market chain as it re-evaluates the viability of cashierless technology in a broader retail context. The closures impact approximately 300 employees,according to reporting from multiple news outlets.
Amazon’s Retail Strategy Shift
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Amazon announced on January 29, 2024, that it woudl be closing all 65 Amazon Fresh and Amazon Go stores across the United States, shifting its focus to expanding Whole Foods Market. CNBC frist reported the news, citing an internal memo from Amazon.
The decision reflects a reassessment of the economic viability and scalability of the cashierless “Just Walk Out” technology pioneered by Amazon. While the technology will continue to be deployed in othre settings, such as airports and stadiums, its request in standalone grocery stores appears to be facing challenges.
According to the internal memo, Amazon will be offering affected employees opportunities to transfer to other roles within the company.
Whole Foods Market Expansion
Whole Foods Market will serve as Amazon’s primary physical grocery presence moving forward. Whole Foods Market has been actively expanding its footprint,opening new stores across the country. The company plans to open at least 18 new stores in 2024.
This expansion is supported by Amazon’s investment in Whole Foods as acquiring the company in 2017 for $13.7 billion. The Securities and Exchange Commission filing detailing the acquisition outlines the terms of the deal.
amazon intends to integrate more of its technologies and services into Whole Foods stores, enhancing the customer experience and streamlining operations. For example, Amazon Prime members receive exclusive discounts and benefits at Whole Foods.
Just Walk Out Technology Future
The “Just Walk Out” technology,which allows shoppers to enter a store,take items,and leave without checking out,will not be abandoned entirely. Amazon plans to license the technology to other retailers, including airports, stadiums, and perhaps other grocery chains. Amazon’s About Amazon newsroom announced plans to expand licensing of the technology in March 2023.
this shift suggests Amazon believes the technology has broader applications beyond its own standalone stores. The company is seeking to generate revenue by providing this technology as a service to other businesses.
In November 2023, Amazon announced a partnership with Canteen, a foodservice provider, to bring Just Walk Out technology to select Canteen locations. This partnership demonstrates the technology’s potential in non-conventional retail environments.
Employee Impact
The closure of the Amazon Go and Amazon Fresh stores will affect approximately 300 employees.