Just Walk Out technology missing from the mainstream as Amazon Fresh stores close in UK

Yesterday we reported that Amazon is binning its ambitious Amazon Fresh experiment in the UK, just four years after the US online giant launched its first grocery store in London.

It is set to shutter its 19 Fresh stores, with plans to convert five of these into Whole Foods Market locations.

The first one opened in the UK during 2021 in Ealing, west London, powered by Just Walk Out technology.

This is the entirely predictable result of throwing huge amounts of cash at technology to sell groceries, according to Ged Futter, Director at the retail mind, a grocery retail consultancy practice.

In a LinkedIn post, he said: “Unlimited funds, unlimited access to technology added to a desire to bring innovation to an industry have all resulted in a retreat. This is not a retreat before Amazon come back with another offer, this is a full on retreat from bricks and mortar. Why? Because it's not what they do or understand.”

Just Walk Out technology was never going to be rolled out nationally, not by Amazon or by any of the other retailers who have given it a go, Futter argues. In a nutshell, it's too expensive.

He added: “Four years and 19 stores, hardly a sign that Amazon truly believed in the concept. During the same time period, Aldi have opened over 100 new stores and last week announced plans to open a further 80.”

“It's interesting that Amazon believe that they are relevant in the grocery market. They have said that their grocery business is outpacing the rest of their UK business. They are focusing on their third party grocery partners Morrisons, Co-op and Iceland. All three of whom are currently bringing up the rear with regards to market performance.”

Futter concluded: “I know that I am a Luddite and a devotee of bricks and mortar but that is because I don't believe that there are enough reasons for shoppers to move further online when it comes to food shopping. The move is all about convenience, it's not about online.”

Amazon, he believes, will now be an online only grocery retailer just like fellow disruptot Ocado.

“How much have Amazon and Ocado spent on technology to sell groceries in the past 20 years? However much they've spent it's been money down the drain. Ocado's partners continue to leave them and Amazon have closed their physical stores. Sometimes just because you can doesn't mean you should. Long live bricks and mortar, it's the future for grocery retailing!”

2025 RTIH INNOVATION AWARDS

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

The awards. which are now closed for entries with our finalists and shortlists being announced this week, 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.