Leaked documents reveal Amazon is falling behind on an ambitious plan to open hundreds of cashierless Fresh grocery stores by 2023
in 2020 in Woodland Hills, California. That store, however, didn't come with the Just Walk Out technology that enables cashierless checkouts.
At 25,000-square-foot, the Factoria store is the biggest site with Amazon's cashierless technology, suggesting the company may have cracked the code on running the service in a large format store. In fact, the Factoria location is expected to be the smallest Fresh store in the 2021 pipeline and is 60% smaller than the average Fresh store, according to one of the documents.
The company has also seen slow sales growth at Whole Foods and other Amazon physical stores, like its bookstores and"4-star" venues. Amazon's physical stores segment, which includes revenue from all of those stores, suffered four straight quarters of declining growth, untilwhen sales bounced back up 11% to $4.2 billion. Amazon reports third quarter results on Thursday.
Amazon plans to put the Just Walk Out technology into every future Fresh grocery store going forward. All sites are expected to come equipped with the cashierless technology, while all existing non-cashierless Fresh stores will be retrofitted by the second quarter of 2022, according to one of the documents. Amazon plans to open new Fresh stores in cities across the country, including Cerritos, CA, Staten Island, NY, and Fairfax, VA, among others, the document shows.
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