Amazon’s Just Walk Out Technology Faces Challenges in Company-Owned Stores
Amazon’s removal of its Just Walk Out cashierless shopping technology from company-owned stores has sparked debate about its viability in campus convenience stores and stadiums. The technology, which allows customers to shop without stopping at a checkout counter, has been successful in certain markets, but its struggles in Amazon-owned stores raise questions about its broader applicability.
How Just Walk Out Technology Works
The Just Walk Out system uses a combination of computer vision, sensors, and deep learning to track customers’ selections and automatically charge their registered payment method upon exit. Customers enter the store by scanning a payment method, such as a credit card or student ID card, and overhead cameras and weight-sensitive shelves monitor their activity.
Challenges in Amazon-Owned Stores
Despite its success in certain markets, Amazon has struggled to make Just Walk Out technology work in its company-owned stores. In Spring 2024, Amazon removed the technology from its Amazon Fresh stores, replacing it with smart shopping carts that allow customers to scan items as they shop. The company continued to use Just Walk Out in its smaller Amazon Go shops, but the concept has not grown as expected, with plans to open up to 3,000 stores scaled back significantly.
Continued Adoption in Higher Education and Stadiums
While Amazon’s company-owned stores have struggled with Just Walk Out technology, its adoption continues to grow in other markets, particularly in higher education and stadiums. More than 80 stadiums and arenas now use self-service concessions powered by Just Walk Out, and Amazon has announced plans to bring the technology to 10 new college campuses. Institutions such as Emory University, University of Maine, and University of Virginia have already implemented the technology.
Implications for Campus C-Stores
The success of Just Walk Out technology in campus convenience stores and stadiums suggests that its viability is not necessarily tied to Amazon’s company-owned stores. Campuses should evaluate their autonomous c-stores based on performance, ROI, and customer satisfaction to determine whether the technology is working for them. As with any technology, its success can vary depending on the environment in which it is deployed.
Conclusion
While Amazon’s struggles with Just Walk Out technology in its company-owned stores are notable, they do not necessarily predict its failure in other markets. The continued adoption of the technology in higher education and stadiums suggests that it remains a viable option for cashierless shopping in these contexts.
