What Amazon’s store closures may signal for unattended retail
Amazon is shutting down nearly all of its Amazon Go convenience stores and Amazon Fresh grocery stores as it shifts its grocery strategy to delivery, Whole Foods Market expansion and new store concepts. While the shift may — at first glance — seem a pivot away from unattended retail, the technology behind its stores remains a key B2B emphasis for the company.
The company announced the final day of operation for most Amazon Go and Amazon Fresh locations is Feb. 1, with California stores remaining open longer to meet state requirements. Amazon said some of the closing locations will be converted into Whole Foods Market stores.
Emphasis on Just Walk Out technology for B2B remains
For convenience and refreshment operators, Amazon’s retreat from operating its own stores does not mean it is stepping away from the technology and capabilities that made Amazon Go notable. The company plans to continue commercializing its cashierless platform — Just Walk Out technology — positioning it as a business-to-business product for retailers, venues and other operators that want faster throughput and fewer checkout touchpoints.
In a recent update, Amazon said Just Walk Out now runs in more than 360 third-party locations across five countries, and it processed 36.7 million items through 17.7 million shopping sessions over the past year. The company also said it has cut deployment costs by more than 50% since 2018 and reduced installation time from weeks to hours in some settings, supported by integrations with point-of-sale systems, payment processors and loyalty programs.
Amazon is also pushing RFID-based options that can fit event retail, stadiums and other high volume environments, including “portable” RFID lanes designed to deploy quickly for pop-ups and temporary locations. Amazon says the technology can be used in convenience stores, fuel stations and electric-vehicle charging sites to extend operating hours, improve labor efficiency and reduce shrink.
Amazon’s positioning mirrors what it has said about shopper behavior in larger grocery environments: In 2024, the company began phasing Just Walk Out out of many U.S. Amazon Fresh grocery stores, shifting attention to alternatives such as smart carts, while still arguing the cashierless system is a strong fit for smaller, “grab-and-go” formats and third-party deployments.
At the same time, Amazon said it will keep testing new physical retail experiences, including concepts that blend groceries, essentials and general merchandise — an approach it says it is exploring through a “supercenter” concept.