Amazon halts Just Walk Out tech powered checkout-free stores push
Amazon has put the brakes on the expansion of its UK checkout-free convenience stores, due to sales falling short of expectations and fit out costs being multiple times higher than with a standard location.
According to a report by The Sunday Times, the US giant is understood to have walked away from talks on dozens of sites for Amazon Fresh stores, and has stopped its search for more locations.
There will still be a handful of openings this year at sites where Amazon had already committed to a lease.
In a LinkedIn post, Martin Heubel, an Amazon strategy consultant, said: “Not a major surprise amid the current economic climate. It’s expensive to get into retail and even more expensive to remain.”
“With inflation at all time highs, customers are prioritising to save money. Even the most advanced self-checkout technology won’t revert this trend in the short-term. It seems, Amazon has come to realise this, too.”
Amazon’s first checkout-free store in the UK opened in March last year, in Ealing, west London. Since then, it has opened another 18 stores, predominantly in the capital.
A spokesperson told RTIH: “I can confirm that we will continue to open Amazon Fresh stores and look forward to opening more in the future.”
Big name appointments
Last week, we reported that Claire Peters had been appointed Vice President, Worldwide Amazon Fresh, and Peter Bowrey Vice President, Amazon Fresh Store Operations.
Peters joins from Woolworths Supermarkets where she served as Managing Director.
Her CV also includes a stint as Chief Operating Officer at Tesco Stores.
Bowrey, meanwhile, worked for Tesco for over 30 years across various functions and internationally.
Most recently, he was Retail Director at Boots.
In a LinkedIn post, Tony Hoggett, SVP Worldwide Physical Stores & Speciality Fulfilment, Amazon, said: “I’m excited to announce Claire and Peter are joining our growing Amazon Physical Stores leadership team.”
“Both Claire and Pete will join Amazon in early 2023, bringing decades of grocery, international and multi-channel retail experience.”
He added: “I’m inspired by the Amazon Physical Stores and Speciality Fulfilment leadership team we have in place, and we’re all looking forward to growing the business together with our two new members.”
