Amazon is Closing Down Its Amazon Go and Amazon Fresh Stores – What’s Next?
You might have heard the news: Amazon is shuttering its Amazon Go and Amazon Fresh stores. I’m guessing many of you are thinking, “Wait, what? Didn’t they just open those?” Yeah, it’s true that the company has been testing out its cashierless checkout technology in these stores for a while now, but it looks like it’s time to shift gears.
According to Amazon, the Just Walk Out tech will live on, but instead of focusing on its own branded physical stores, the company will be providing the tech to third-party businesses, like the concession stands at your favorite sports stadiums. Yep, you heard that right – you might be able to grab a snack at the game without ever stopping at a checkout line.
So, why the change of heart? Amazon says it’s because it hasn’t quite cracked the code on creating a unique customer experience that’s financially sustainable at scale. It’s not all doom and gloom, though – the company is banking on its Whole Foods Market brand to bring in the cash.
Amazon is actually planning to open over 100 new Whole Foods locations in the next few years, which is a far cry from the number of closures we’re seeing with Amazon Go and Amazon Fresh. The company says Whole Foods has seen a whopping 40% sales growth since it was acquired in 2017, and the brand has expanded to over 550 stores.
The company is also testing out the concept of Whole Foods Market Daily Stores, smaller versions of the grocery store that focus on convenience and grab-and-go food. Sounds a bit like the Amazon Go model, if you ask me. Guess we’ll have to see if it sticks this time around.
What do you think about Amazon ditching its Amazon Go and Amazon Fresh stores? Share your thoughts in the comments below!
