Amazon, a dominant online retailer, is facing challenges in physical stores. According to The Wall Street Journal, workforce for Amazon Go convenience stores has been cut by almost 50% since 2023. These stores, offering contactless payment, struggle to attract regular customers.
Amazon, a dominant online retailer, faces challenges establishing a presence in physical stores. The Wall Street Journal reveals that Amazon reduced its Amazon Go convenience store workforce by almost 50% since 2023 due to the stores’ struggle to attract consistent customers with their cashier-less payment system.
Amazon experimented with various store formats over the past year, like bookstores and clothing outlets, before closing most. Yet, the company found success licensing its “Just Walk Out” tech for Amazon Go stores. Ed Coury from RCS Real Estate Advisors suggested viewing the failed stores as a testing ground for this technology to appreciate their purpose and potential success.
Amazon Go stores faced challenges, yet over 200 institutions adopted the “Just Walk Out” technology, such as educational institutes, sports venues, healthcare facilities, and airports. This strategy allows Amazon to benefit from the technology’s marketing potential without store operational costs.
Amazon, facing challenges in physical retail, shifts focus to its grocery sector. In 2017, it acquired Whole Foods for $13.5 billion. Recently, Jason Buechel, Whole Foods’ CEO, was appointed to lead Amazon’s grocery business, which encompasses Fresh and Go stores.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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