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

Amazon Shifts to Smart Carts in Grocery Stores Amid Challenges and Revamped Strategy

Amazon is revamping its grocery chain by replacing the Just Walk Out technology with smart carts in its Amazon Fresh stores. The company made this change in response to feedback from customers who wanted to view their receipts and savings while shopping. 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. 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.

Amazon will continue to offer the Just Walk Out technology in Amazon Go stores and some smaller Amazon Fresh stores in the U.K. The company also plans to provide the technology to third-party retailers. Amazon 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.

In his annual letter to shareholders in 2023, Amazon CEO Andy Jassy mentioned that the company is working to have a larger impact on physical grocery. He also mentioned that some Amazon Fresh and Go stores have been shut down due to underperformance and that expansion on Fresh stores was paused last year. However, he also announced that the company recently reopened three Fresh stores in Los Angeles, California and plans to selectively open new Fresh stores and remodel existing ones. This shows that Amazon is committed to making its grocery chain more successful and meeting customer needs.

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