In a continued shift away from its cashierless Go convenience stores, Amazon.com, Inc. (NASDAQ:AMZN) has reportedly shuttered three more locations in New York last week.
What Happened: Amazon has been steadily reducing its Go stores that use the "Just Walk Out" technology, with the latest closures, the total number of Go stores has come down to 17 nationwide, reported TechCrunch (via The Information) on Friday.
Last year in March also, the company had shut down eight Go stores in Seattle, San Francisco, and New York.
Earlier this year, the company removed the Just Walk Out technology from its grocery stores, focusing more on smaller grab-and-go shops. It also opened a new Go store in Washington.
The e-commerce giant also continues to license the Just Walk Out technology to third-party convenience stores.
Why It Matters: In 2016, Amazon launched its Just Walk Out feature, enabling customers to scan a QR code when entering a store, pick up items, and leave without going through a traditional checkout.
The system relies on cameras, sensors, and a remote team monitoring shoppers to accurately track purchases and complete transactions.
However, the experimental system has faced several challenges, including long delays in finalizing transactions—sometimes taking hours—and the high costs involved in installing the necessary cameras and sensors at each location.
Earlier this year, it was reported that Amazon replaced this technology with a "smart-cart" system called Dash Cart in its grocery stores.
Despite the closures, Amazon continues to focus on profitable ventures and efficiency gains. Earlier this month, Morgan Stanley analyst Brian Nowak reiterated Amazon with an Overweight rating, highlighting the company's growth potential.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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