Amazon Scales Back Cashierless Go Stores, Shifts Focus in AI-Powered Retail Strategy

Amazon Shutters 3 More Cashierless Go Stores In New York: Report - Amazon.com (NASDAQ:AMZN)

In a continued shift away from its cashierless Go convenience stores, Amazon.com, Inc. AMZN has reportedly shuttered three more locations in New York last week. What Happened: Amazon has been steadily reducing its Go stores that use the "Just Walk Out" technology, with the latest closures, the total number of Go stores has come down to 17 nationwide, reported TechCrunch (via The Information) on Friday. Last year in March also, the company had shut down eight Go stores in Seattle, San Francisco, and New York. Earlier this year, the company removed the Just Walk Out technology from its grocery stores, focusing more on smaller grab-and-go shops. It also opened a new Go store in Washington. The e-commerce giant also continues to license the Just Walk Out technology to third-party convenience stores. See Also: Nvidia's Blackwell GPU Sets New AI Benchmark With Over 100 System Configurations, Analyst Says Why It Matters: In 2016, Amazon launched its Just Walk Out feature, enabling customers to scan a QR code when entering a store, pick up items, and leave without going through a traditional checkout. The system relies on cameras, sensors, and a remote team monitoring shoppers to accurately track purchases and complete transactions. However, the experimental system has faced several challenges, including long delays in finalizing transactions -- sometimes taking hours -- and the high costs involved in installing the necessary cameras and sensors at each location. Earlier this year, it was reported that Amazon replaced this technology with a "smart-cart" system called Dash Cart in its grocery stores. Despite the closures, Amazon continues to focus on profitable ventures and efficiency gains. Earlier this month, Morgan Stanley analyst Brian Nowak reiterated Amazon with an Overweight rating, highlighting the company's growth potential. Read Next: OpenAI's SearchGPT Set To Disrupt Google's Search Empire As Former Engineer Sounds Alarm On Deteriorating User Experience Amid Rising Competition Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Photo courtesy: Wikimedia Market News and Data brought to you by Benzinga APIs

Amazon closes more of its cashierless convenience stores

Amazon continues to scale back efforts around its cashierless checkout technology, Just Walk Out. The e-commerce giant closed three of its Go convenience stores in New York last week, The Information confirmed on Friday, leaving just 17 across the nation. (Amazon notes it recently opened one in Washington.) These convenience stores use AI systems to track what customers pick up, allowing them to buy items without ever having to formally check out with a cashier. Since 2023, Amazon has cut the number of Go storefronts it operates nearly in half. Amazon pulled Just Walk Out technology from its grocery stores earlier this year, saying at the time it would focus more on smaller grab-and-go shops - but maybe not its own. Amazon licenses Just Walk Out technology to lots of third party convenience stores, and Amazon says it's still committed to the Go format and technology as a whole.