Amazon is closing all of its Walk Out grocery stores, the company announced on Thursday. The stores, which allowed customers to shop without having to check out, were first launched in 2018 as a way to make grocery shopping more convenient. However, the stores have been plagued by technical problems and have failed to gain widespread adoption.
In a statement, Amazon said that it was closing the Walk Out stores because it was "not satisfied with the progress we have made in scaling the technology." The company said that it would continue to invest in other grocery technologies, such as Amazon Fresh and Amazon Go.
The closure of the Walk Out stores is a setback for Amazon's ambitions in the grocery market. The company has been trying to gain a foothold in the grocery industry for years, but it has faced competition from established grocers like Walmart and Kroger.
The closure of the Walk Out stores also raises questions about the future of cashierless technology. Amazon was one of the first companies to invest in cashierless technology, but it is unclear if the technology is ready for widespread adoption.
What went wrong with Amazon Walk Out?There are a number of reasons why Amazon Walk Out failed to gain widespread adoption. One reason is that the technology was not always reliable. Customers often complained about problems with the sensors and the checkout process.
Another reason why Walk Out failed is that it was not convenient for all customers. Many customers prefer to be able to interact with a cashier, and they do not want to have to use a self-checkout kiosk.
Finally, Walk Out was simply too expensive for many customers. The stores were located in high-rent areas, and the prices of the groceries were often higher than at other grocery stores.
What does the future hold for cashierless technology?The closure of the Walk Out stores does not mean that cashierless technology is dead. However, it does suggest that the technology is not yet ready for widespread adoption.
In the future, cashierless technology may become more reliable and convenient. However, it is also likely that cashierless technology will remain more expensive than traditional checkout methods.
What should Amazon do now?Amazon should focus on investing in other grocery technologies, such as Amazon Fresh and Amazon Go. These technologies are more convenient for customers and they are more likely to be adopted by a wider range of consumers.
Amazon should also continue to invest in cashierless technology. However, the company should focus on making the technology more reliable and affordable.
By investing in these other technologies, Amazon can still achieve its goal of making grocery shopping more convenient for customers.