In a major move to revamp its grocery chain, Amazon is replacing the Just Walk Out technology in its Amazon Fresh stores with smart carts. The company has been working to find the right formula for its entry into the grocery sector and has faced challenges in the past. Despite initial predictions that Amazon’s entry would disrupt the market, poor performance of some stores and expansion plans were paused last year. However, recent reports indicate that three Fresh stores have reopened in Los Angeles, California and plans are underway to selectively open new stores and remodel existing ones.

While Just Walk Out technology allows customers to pay for items without waiting in line and receive receipts afterward, the new smart cart will display shoppers’ spending in real time, addressing feedback from shoppers who want to see their bills and savings while they shop. The company currently operates dozens of Fresh grocery stores across the country and also owns Whole Foods, which it acquired in 2017 for $13.7 billion.

Amazon CEO Andy Jesse mentioned in his 2023 annual letter to shareholders that the company is committed to having a bigger impact on physical groceries. He noted that some Amazon Fresh and Go stores have been closed due to poor performance, but expressed optimism about future growth opportunities. The company plans to continue offering Just Walk Out technology in Amazon Go stores and some smaller Amazon Fresh stores in the UK, as well as providing it to third-party vendors. With these changes, Amazon hopes to improve its grocery chain offerings while still maintaining its commitment to convenience and efficiency for customers.

By Samantha Johnson

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