Amazon physical flop proves retail technology amplifies good operations, it doesn't replace them

Earlier this year, we reported that Amazon was binning its Amazon Go and Amazon Fresh physical stores experiment as it shifted its focus to on demand online delivery and new big box locations.

In doing so, Amazon failed to understand that physical retail is an operations problem, not an automation problem. That’s according to Fabrice Haiat, CEO and Founder at YOOBIC.

In a LinkedIn post, he said: “Amazon built a cashier-less store and still needed 1,000 people to run it. Amazon Go, Amazon Fresh, Amazon Style, Just Walk Out technology: billions invested, stores loaded with roughly $1 million in sensors each. By 2024, they closed or scaled back nearly all of it.”

He added: “The company that redefined retail online found the store floor surprisingly hard to solve. Not because they lacked technology. Because they built technology to eliminate people instead of equip them. Just Walk Out, Amazon's flagship "automated" checkout, wasn't automated. It ran on 1,000 contract workers in India reviewing footage for every transaction. Customers thought AI was tracking their cart. A human was. Amazon Fresh pulled the technology entirely in 2024 once this became public.”

Amazon Go, Haiat observed, had a different but familiar problem: sensors that failed mid-checkout, AI that misidentified products, inventory that went haywire. Despite the "cashier-less" branding, those stores still needed constant troubleshooting, restocking, and customer support. The technology didn't remove the labour. It just hid it, he argued.

He commented: “Running a store means managing shift schedules, training new hires every few months, preventing theft and waste before it shows up in the numbers, and making sure every shelf is stocked correctly. You can't automate those problems away. But you can build systems that make the people handling them dramatically better.”

“Costco grew from $138 billion to nearly $250 billion in annual sales over the same period: not because of sensors, but because of decades of operational discipline: long employee tenure, clear store standards, and a playbook their teams actually execute.”

He concluded: “Notice which grocery format Amazon kept: Whole Foods, a chain they acquired with existing staff, trained managers, and operational history. Not the stores they built from scratch. That says everything. Technology amplifies good operations. It doesn't replace them.”

“The retailers that win don't build technology to eliminate the human on the store floor. They give that human the tools to execute consistently, communicate clearly, and surface what headquarters can't see from afar.”

2026 RTIH Innovation Awards

Physical stores will be a key focus area at the 2026 RTIH Innovation Awards.

The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.

Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.

Check out our 2025 winners here.

Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”

“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”

He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”

Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.