E-commerce behemoth Amazon is pulling back on its “Just Walk Out” checkout system that expedites payments through a cashierless purchase process, according to a report from the tech news outlet The Information.

The company will be removing the grab-and-go automated technology from its Amazon Fresh grocery stores this year as part of a chain-wide revamp, according to a Tuesday interview by The Information with Tony Hoggett, Amazon’s senior vice president of grocery stores.

Seattle-based Amazon will instead offer its smart shopping carts as a “frictionless” checkout experience in the stores, Hoggett said. The carts allow shoppers to scan items as they go, and then skip the checkout line with an automatic payment.

“Just Walk Out” technology has stumbled over the last few years. Amazon leaned heavily on the technology in its own stores, including grocery chain Whole Foods. But it has struggled to control costs and to build support for the technology with other retailers, according to a report by The Information.

The technology identifies a payment method when a shopper enters a store, including the use of a credit or debit card, an app or the company’s contactless biometric option, called Amazon One. Then, cameras in a store and shelf sensors keep track of what a customer is planning to buy.

As recently as 2022, Amazon was expanding on use of the Just Walk Out checkout technology at its Amazon Fresh grocery chain. The company operates its Whole Foods business separately, but had also introduced the cashierless technology at that grocery store chain the same year.

But at least one rival is still investing in the grab-and-go grocery experience. Grocery chain Aldi debuted a fully automated checkout system, powered by technology firm Grabango, in a suburban Chicago store last November. 

In an emailed statement from an Amazon spokesperson that didn’t dispute the report, the retailer said customer feedback suggested shoppers were looking for additional features, such as finding nearby deals in the store and viewing their receipt in real time. The company said its smart shopping carts will include those benefits. “To deliver even more convenience to our customers, we’re rolling out Amazon Dash Cart, our smart-shopping carts, which allows customers all these benefits including skipping the checkout line,” the statement said.

By James Pothen on April 2, 2024
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