Amazon Fresh UK closures show how tech experimentation is expensive and operationally complex

Amazon may be closing its Just Walk Out technology powered stores in the UK, but Chris Jones, Managing Director at payments consultancy PSE Consulting, argues the experiment has given the US online giant something even more valuable: a dataset of billions of real shopping behaviours. He believes this could power the next generation of AI driven retail and in-store payments.

“Amazon’s recent decision to close all its Fresh physical stores in the UK has sparked debate over the future of grocery retail and the role of check-out free technology. While the Just Walk Out concept promised a frictionless shopping experience, the reality proved far more complex," he says.

He adds: "Errors such as mischarges, missed items, and other operational challenges eroded customer trust, requiring a significant back office workforce and undermining the model’s scalability. For UK shoppers, already familiar with self-scan and Click and Collect, the benefit wasn’t compelling enough to change established habits.”

“The technology itself was both pioneering and problematic. It highlighted the difficulties of taking lab tested payments solutions into the messy, unpredictable environment of a grocery store. Unlike e-commerce, where testing and iteration are low cost, in-store experimentation is expensive and operationally complex. For many customers, the system simply wasn’t reliable enough to replace a traditional checkout.”

Despite these setbacks, Amazon’s pivot is not a retreat but a recalibration, Jones believes. The stores have generated a uniquely rich dataset: billions of behavioural insights into how people shop.

This data can now be used to train GenAI models and test future in-store technologies, including innovations like the Dash Cart, at a fraction of the cost competitors would face. In this sense, the in-store experiment has created a digital testbed for the next generation of AI driven retail experiences.

He concludes: “The move also reflects broader grocery sector trends. Online delivery and Click and Collect are areas of growth, but in-store models drive customer engagement and loyalty. Grocers continue to invest in supply chain efficiency and last-mile delivery while experimenting with new in-store formats. Amazon, equipped with unparalleled behavioural data, is well positioned to re-enter physical retail in the future with a more robust, AI enhanced model.”

“For other retailers, Amazon’s experience offers an important lesson: rushing into checkout free technologies without robust testing can be costly and operationally challenging. The smarter approach is to leverage data driven digital simulations before scaling, learning from consumer behaviour and edge cases to ensure new in-store technologies truly enhance, rather than frustrate, the shopping experience.”

2025 RTIH INNOVATION AWARDS

AI 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 last 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.