Bold move as Amazon shakes up physical retail strategy with Just Walk Out technology stalling in real world

Amazon’s recent announcement that it is merging the corporate teams behind its Amazon Go and Fresh stores is a bold move that signals a shift in focus - streamlining operations and integrating its cashierless technology across both formats. But it also hints at the challenges it faces in cracking the competitive grocery and convenience store markets.

So says Sumeet Goenka, Founder and CEO at YALLO Group.

“The merger brings together the teams responsible for the high tech Go convenience stores, known for their Just Walk Out shopping experience, and the larger Fresh grocery stores, which have struggled to gain momentum. By combining forces, Amazon aims to leverage its cutting-edge tech, like Just Walk Out and Dash Cart, to create a more seamless and efficient shopping experience across its physical stores. It’s a smart play to cut costs and double down on what works.”

The consolidation comes as Amazon reevaluates its bricks and mortar ambitions. The company has already closed some underperforming Fresh and Go locations, suggesting a pivot from rapid expansion to a more measured, profitability focused approach. It’s a reminder that even a tech giant like Amazon isn’t immune to the challenges of traditional retail, Goenka observes.

He adds: “For the retail industry, this move is a fascinating case study. Amazon’s cashierless technology was once seen as a game changer, but scaling it in the real world has proven tougher than expected. Competitors in the grocery and convenience space will be watching closely to see how Amazon’s strategy evolves. Will this merger lead to a more cohesive and successful retail model, or is it a sign that Amazon’s physical store dreams are losing steam?”

“One thing’s for sure: Amazon’s decision reflects the growing importance of operational efficiency and tech integration in retail. It’s a high-stakes experiment that could influence how other players in the industry approach innovation and expansion. For now, Amazon’s retail story is far from over - it’s just entering a new chapter.”

2025 RTIH INNOVATION AWARDS

Grocery retail will be a key focus area at the 2025 RTIH Innovation Awards.

The awards. which will open for entries in March, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.