Amazon, the world's largest retail entity has removed “Just Walk Out” remote checkouts in its US-based stores. The move from Jeffery Bezos' business empire was first announced in : INFORMATIONwhich the company would later confirm was true.
Amazon rethinks retail strategy
The “Just Walk Out” option used by the market giant has been scrapped and will be replaced with scanners attached to trolleys. This new system will replace what currently exists in over 130 retail locations in the United States and will be named “Ram cart“.
Those who spend their hard-earned cash at these stores will no longer be tracked by a series of cameras that add up the total amount a customer grabs in their grocery cart and link it to their Amazon account.
The Seattle-based company acquired Whole Foods in 2017 in a $13.7 billion deal and also operates Amazon Go in many retail environments across the United States.
One of the deciding factors in moving away from this system was the cost of implementing it, and some labor disputes made implementing remote systems a major challenge. Amazon also said The grocerthat the move was driven by consumer need, saying in-store shoppers “wanted the ability to easily find nearby products and offers, see their receipt as they shop, and know how much money they've saved while shopping across the store.”
IN Dash Cart Pagethe retail empire hopes the shopping experience will provide “faster and more convenient shopping” and help consumers get “the most” from their grocery budget by saving “money with discounts and timely offers real and an on-screen bill to track expenses.”
Tony Hogget, head of stores for Amazon Global Grocery said that “not everything you do in grocery needs reinvention. There are proven things that grocers are doing. But you don't really know about them until you've worked in the industry for a long time.” Hogget would also tell The Information that locations that offer Dash Cart will be updated to “Version 2” pages for Amazon’s grocery empire ambitions.
In one Fourth quarter earnings call CEO Andy Jassy would say “If you want to serve as many food needs as we do, you have to have a massive physical presence. And that's what we've been trying to do with Fresh over the years. We've been testing a V2 of the format our Fresh in several locations near Chicago and several locations in Southern California.”
It remains to be seen whether this old approach to customers being in charge of their own purchasing decisions instead of robotic self-service will be fruitful for Amazon, but it's the trajectory Jassy and Hogg are on.
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