Amazon Fresh UK launches automated returns kiosks at Liverpool Street and Moorgate London stores

Amazon Fresh UK has embarked upon an automated returns kiosks (ARK) journey, deploying the technology at its Liverpool Street and Moorgate stores.

In a LinkedIn post, Aline Morais, Program Manager at Amazon, said: “Leading this program has been an incredible experience!”

“The ARK provides a seamless, self-serve method for processing LFBF (label-free-box-free) returns, much like a self-checkout experience. This addition, alongside our self-serve pick-up lockers, allows customers to handle all their pick-up and return missions from any AUKF shop.”

She added: “Developed under the GSF CXO umbrella, the ARK device has already proven its value with over 450 units installed worldwide and 14.3 million returns processed. We're confident this innovation will greatly enhance the shopping experience at Liverpool Street and Moorgate.”

“This is how iterative innovation evolves”

In April, we reported that Amazon was removing Just Walk Out technology from its Amazon Fresh stores.

This will be replaced by smart carts that allow customers to skip the checkout line but also see their spending in real-time.

Just Walk Out will continue to be offered in Amazon Go stores and some smaller Amazon Fresh stores in the UK. Amazon will also continue to offer the tech to third-party retailers.

“We’ve invested a lot of time redesigning a number of our Amazon Fresh stores over the last year, offering a better overall shopping experience with more value, convenience, and selection, and so far we’ve seen positive results, with higher customer shopping satisfaction scores and increased purchasing," said spokesperson Jessica Martin.

“We’ve also heard from customers that while they enjoyed the benefit of skipping the checkout line with Just Walk Out, they also wanted the ability to easily find nearby products and deals, view their receipt as they shop, and know how much money they saved while shopping throughout the store.”

To label the initiative a failure was naive at best and at worst a complete misunderstanding of tech creativity, argued Brand L. Elverston, Founder/Principal at Elverston Consulting.

He commented: “For the pessimists, this is a colossal "I told you so." For others, it is easily understood this is how iterative innovation evolves.”

“The idea, the whiteboard, the alpha, the beta, the limited test, adjustments, reworks, and refits - and learnings all the while. Collateral, unintended innovation often occurs when pursuing some completely different goal.”

He added: “Pursuits such as these are exactly what sparks imagination and creativity. Not all are going to become resounding, earth shattering, take the world by storm events. In fact, few do.”

“When Amazon unveiled the first Amazon Go store in 2016/17, it immediately caught the eyes of countless tech firms and retailers - how many others followed with their own solutions?”

ANOTHER TAKE

Brittain Ladd, a supply chain consultant and former Amazon executive, on the other hand, argued that the technology never worked as claimed. In fact, it was reported that Amazon had over 1,000 associates in India working behind the scenes to support the programme.

“Amazon only has 13 Amazon Go stores in operation with no other openings planned. I anticipate most if not all Amazon Go stores will be closed by 2025. Good riddance. The stores are about as inviting as an operating room,” he said.

Of major significance, Ladd believed, was Tony Hoggett, SVP Worldwide Grocery Stores saying that Amazon was going to begin opening more Fresh stores by the end of the year.

Ladd commented: “For the record - it will be challenging for Amazon Fresh stores to compete against the entrenched grocers who have all the advantages.”

“I’ve reviewed the designs for the new and improved Amazon Fresh stores. I’m not impressed. Amazon continues to embrace gimmicks disguised as innovation.”

“Amazon Fresh isn’t the big story, however. This is: Hoggett announced that a micro-fulfilment centre (MFC) will be opened inside a Whole Foods store in 2024. Amazon has a relationship with AutoStore, and has already installed their system at a facility”

“It has also asked Brightpick to provide designs and costing information for opening Brightpick MFCs inside different size Amazon Fresh stores that will operate in Pennsylvania, Texas and Washington state.”

On average, it costs between $2 million to $4 million to purchase and install an MFC inside a grocery store but the price can exceed $7 million in certain cases, Ladd observed.

He concluded: “For every six Whole Foods or Amazon Fresh stores, one MFC is required to fulfil the volume of online orders fulfilled manually by each store. Theoretically, Amazon would need to install 86 MFCs across Whole Foods network of 516 stores to automate online grocery fulfilment.”

“Hoggett also announced something quite interesting. It’s truly the BIG STORY - Amazon wants to fulfil orders for retailers and then combine orders of groceries and other retail products into one delivery for customers.”

“Another option is for retailers to fulfil their own orders but Amazon will still consolidate orders going to the same customer into one delivery.”