Amazon Scales Back Cashierless Stores While Investing in Just Walk Out Technology
Latest Store Closures and Strategic Shifts
Amazon has closed three additional Just Walk Out-powered Go convenience stores in New York, as first reported by The Information. This leaves only 17 operational locations nationwide, though the company recently opened a new store in Washington.
Key Details:
- Location Impact: Three NYC stores closed in October 2024
- Current Footprint: 17 remaining Amazon Go stores across the U.S.
- Technology: Stores utilize AI-powered Just Walk Out cashierless systems
The Economics Behind the Decision
Amazon confirmed the closures were driven by financial considerations rather than performance issues.
“While these three stores were performing well, we couldn’t make the economics work with the lease cost, so we’ve decided not to renew and have closed these locations,” an Amazon spokesperson stated.
This continues a trend of scaling back physical retail:
- 50% reduction in Go stores since 2023
- Follows removal of Just Walk Out tech from Amazon Fresh grocery stores earlier in 2024
Future of Just Walk Out Technology
Despite the store closures, Amazon remains committed to its cashierless technology:
Strategic Focus Areas:
- Third-Party Licensing: Expanding partnerships with other retailers
- Small-Format Stores: Optimizing for grab-and-go convenience models
- Technology Development: Continuing to refine the AI-powered system
“We’re still committed to the Go format and Just Walk Out technology as a whole,” the company emphasized, signaling a shift toward technology licensing rather than operating its own stores.
Updated October 2024 to reflect Amazon’s official statement on the closure reasons.
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