Just Walk Out technology is being removed by Amazon from its Fresh grocery stores in the US.

Despite initial predictions that Amazon’s entry into the grocery sector would disrupt the market, the company has faced challenges in finding the right formula. The removal of Just Walk Out technology and replacement with smart carts is a part of an effort to revamp its grocery chain. According to sources, some Amazon Fresh and Go stores have been shut down due to underperformance and expansion on Fresh stores was paused last year. However, the company recently reopened three Fresh stores in Los Angeles, California and plans to selectively open new Fresh stores and remodel existing ones.

The new smart carts will still allow customers to skip the checkout line but will also show their spending in real time, addressing feedback from customers who wanted to view their receipts and savings while shopping. This change was first reported by The Information. The company currently operates dozens of Fresh grocery stores across the country, primarily in California, Illinois, Virginia, and Washington state. Additionally, Amazon also owns Whole Foods which it acquired in 2017 for $13.7 billion.

Amazon CEO Andy Jassy mentioned in his annual letter to shareholders in 2023 that the company is working to have a larger impact on physical grocery. He stated that they are committed to providing customers with a seamless shopping experience across all channels. The company plans to provide Just Walk Out technology only in Amazon Go stores and some smaller Amazon Fresh stores in the U.K., as well as providing it as a service for third-party retailers. With these changes, Amazon is hoping to address customer feedback and improve their overall shopping experience while continuing its expansion into the grocery market.

By Sophia Gonzalez

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