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Amazon to Expand Cashierless Shopping Technology in Third-Party Stores, Shifts Focus Away from Its Own
Amazon.com announced its plans on Wednesday to expand its cashierless shopping technology, known as "Just Walk Out," into more third-party stores this year. The move comes as the company reduces its reliance on the technology in its own stores. Currently, around 140 stores utilise the Just Walk Out system, which allows customers to enter a store by scanning an app and leave without having to pay at a register. Amazon aims to more than double that number in the coming months.
The company addressed a recent report by tech site The Information, which claimed that the technology relies on human reviewers in India to monitor customers as they shop. Amazon clarified that associates do not watch live video of shoppers to generate receipts, as this is automatically handled by computer vision algorithms. However, human reviewers are still necessary to ensure accuracy and improve the system.
While expanding the Just Walk Out technology to third-party stores, such as stadiums and Hudson News locations at airports, Amazon plans to remove the technology from its own existing Fresh grocery stores. Instead, the company will introduce "smart" shopping carts that track users' items and charge them upon leaving the store, sending a digital receipt. Amazon stated that Fresh customers tend to spend more when using these carts compared to those who do not.
Amazon has been striving to keep up with competitors like Walmart and has made significant efforts in its Fresh stores, delivery options, and the acquisition of Whole Foods in 2017 for over $13 billion. However, the Just Walk Out technology has faced challenges, including customer confusion, missed items, and delays in sending receipts, sometimes taking hours or even days.
In recent months, Amazon has made adjustments to its physical retail team, including cutting hundreds of jobs. The company has also stepped back from various brick-and-mortar store concepts, such as bookstores and shops featuring highly reviewed products from its website.
Amazon plans to expand its cashierless shopping technology, Just Walk Out, into more third-party stores this year.
The company refuted claims that the technology relies on human reviewers to monitor customers in real-time.
Amazon will remove the Just Walk Out technology from its own Fresh grocery stores and introduce smart shopping carts instead.
Source: REUTERS