What does this mean for cashierless c-stores on campuses and stadiums that rely on the same technology?
While Amazon Just Walk Out technology seems to be succeeding in campus c-stores and stadiums, the retail giant has failed to make a go of it in its company-owned stores.
Just Walk Out is a cashierless shopping solution that allows customers to enter a store, pick up items, and leave without stopping at a checkout counter. Using a combination of computer vision, sensors, and deep learning, the system automatically detects when products are taken from or returned to shelves, keeping track of a virtual cart in real time.
To use Just Walk Out, customers scan a payment method – such as a credit card, student ID card, or mobile app –upon entering the store. As they shop, overhead cameras and weight-sensitive shelves track their selections. Once they exit, the system finalizes the transaction, charging the registered payment method and sending a digital receipt.
The technology first rolled out in Amazon retail locations including its Amazon Go stores and Amazon Fresh stores. It was then sold to non-Amazon retailers such as stadiums, airports, convenience stores, and campus retail locations.
For higher education, the fact that the Amazon Fresh and Amazon Go stores have struggled should not be the focus. A retail location is not the same as the technology that powers it, and a failure of one does not constitute a failure of the other.
In Spring 2024, Amazon pulled the technology from its Amazon Fresh stores.
At the time, there were 44 locations of which 27 used Just Walk Out, according to Convenience.org. They replaced the AI-enabled system with smart shopping carts that let shoppers to scan items as they move through the store.
Amazon continued to use Just Walk Out in its smaller Amazon Go shops, however, the Go store concept has not grown as expected.
According to a Food Institute article, when Amazon Go launched in 2018, the company planned to open up to 3,000 stores. In 2023 it reached a high of 30 locations, but today only half remain.
In October 2024, they closed three New York City locations, and this week came word that a California location would close in the coming days.
The accusations are flying in media. Some say this shows Amazon’s inability to translate online retailing expertise to brick and mortar. Others suggest that consumers are not ready for cashierless, AI-driven shopping. Still others blame the technology itself.
But while Just Walk Out has struggled in Amazon-owned stores, its use has been rising in other markets notably stadiums and higher ed.
In preparation for the 2024/2025 season, the NFL’s Seattle Seahawk and Washington Commanders added new locations. Today, more than 80 stadiums and arenas now have self-service concessions using Just Walk Out.
In September 2024, Amazon announced plans to bring Just Walk Out check-out to 10 new college campuses. This brought the total number of campus stores using the technology to more than 30.
The list includes:
For higher education, the fact that the Amazon Fresh and Amazon Go stores have struggled should not be the focus. A retail location is not the same as the technology that powers it, and a failure of one does not constitute a failure of the other.
A technology can be a complete success in one environment and a total bust in another. Campuses need to evaluate their autonomous c-stores based on performance, ROI, and customer satisfaction. If it works on campus, great. If not, look for other solutions.