Amazon’s ‘Just Walk Out’ tech will survive company’s retail pullback, minus the palm-scanning

Amazon’s “Just Walk Out” checkout-free technology will continue to operate in hundreds of independent stores even after the company discontinues its Amazon One palm-recognition service in June. However, customers will need to use a card or tap their phone to pay instead of scanning their hand.

The tech giant confirmed this plan Monday in response to an inquiry from GeekWire, which stemmed from a question posed by a reader who frequently visits Seattle sports stadiums and arenas where the Just Walk Out technology is used for grab-and-go food and beverage service.

According to Amazon, the palm-scanning devices will remain physically in place at Just Walk Out locations that have them, but the feature will be disabled. Other payment methods at those stores, including credit and debit cards and mobile wallets, will continue to function normally.

The company announced last week that it would discontinue Amazon One on June 3, citing “limited customer adoption” of the biometric authentication service. This move coincided with Amazon’s decision to close all 72 of its Amazon Go and Amazon Fresh stores.

The Just Walk Out technology, which uses cameras and sensors to let customers grab items and leave without waiting in a checkout line, originated at the Amazon Go stores.

However, separate from its first-party operations, Amazon licenses the system to third-party retailers, stadiums, hospitals, and other venues, with more than 360 locations in five countries.

Amazon One debuted in 2020 and wasn’t part of Just Walk Out when it launched at Amazon Go stores in 2018. However, the palm scanning technology became a signature feature of the system after it was introduced, especially as Just Walk Out expanded to third-party venues.

Amazon One also worked independently from Just Walk Out for easy checkout. Most notably, Amazon rolled it out to more than 500 Whole Foods stores in 2023. The technology drew privacy concerns, including a backlash from artists at Red Rocks Amphitheatre in Colorado in 2022, after ticketing company AXS announced it would use Amazon One for its pedestals.

In mid-January, just two weeks before announcing Amazon One’s discontinuation, the company touted the expansion of Just Walk Out, announcing new portable RFID checkout lanes that can be deployed in hours for pop-up shops and events.

Amazon said the technology processed 36.7 million items through 17.7 million shopping sessions in the past year, with major deployments including the new Nissan Stadium in Nashville, where all concessions will run on Just Walk Out.

The company cited results including a 47% increase in per-game sales at Seattle’s Lumen Field, wait times dropping from 25 minutes to three minutes at BayCare’s St. Joseph’s Hospital in Florida, and an 83% reduction in retail theft at UC San Diego.

Despite the discontinuation of Amazon One, the Just Walk Out technology continues to show promise in various settings. The system’s ability to streamline the shopping experience and reduce wait times has made it an attractive option for venues looking to improve customer satisfaction and operational efficiency.

The decision to discontinue Amazon One while maintaining the broader Just Walk Out system highlights the complexity of implementing new technologies in retail environments. While the palm-scanning feature offered a unique and futuristic payment method, its limited adoption suggests that consumers may not be ready to embrace such advanced biometric authentication for everyday transactions.

On the other hand, the success of the Just Walk Out system in various third-party venues demonstrates the potential for cashier-less technology to transform the retail landscape. As more businesses adopt this technology, we may see a shift in how consumers interact with stores and make purchases.

The closure of Amazon’s own retail stores, including Amazon Go and Amazon Fresh, marks a significant pivot in the company’s brick-and-mortar strategy. This move suggests that Amazon is focusing on other areas of its business, such as its Whole Foods chain and grocery delivery services, which have shown more promise in terms of profitability and customer adoption.

As the retail industry continues to evolve, it will be interesting to see how other companies respond to Amazon’s decisions. Will they follow suit and abandon experimental technologies like palm-scanning, or will they double down on cashier-less systems and other innovations?

One thing is clear: the future of retail is likely to be shaped by technology, whether it’s through advanced payment systems, AI-powered inventory management, or personalized shopping experiences. Amazon’s latest moves provide valuable insights into the challenges and opportunities that lie ahead for retailers and consumers alike.

As we move forward, the key will be finding the right balance between innovation and practicality, ensuring that new technologies enhance the shopping experience without compromising privacy or convenience. The story of Amazon One and Just Walk Out serves as a reminder that even the most advanced technologies must ultimately meet the needs and expectations of real-world consumers to succeed.

Tags:
#Amazon #JustWalkOut #AmazonOne #RetailTechnology #BiometricAuthentication #CashierlessStores #FutureOfRetail #ShoppingInnovation #TechNews #AmazonFresh #AmazonGo #WholeFoods #PrivacyConcerns

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