Amazon’s grocery chain is undergoing a transformation as the company moves away from its Just Walk Out technology and replaces it with smart carts. This change was driven by customer feedback, who wanted to view their receipts and savings in real-time while shopping. The new smart carts will still allow customers to skip the checkout line, but will also provide real-time spending information.
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. 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. 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.
