Comment by hackingonempty
8 hours ago
There is no difference from the customer perspective so the store failed for reasons that have nothing to do with the "just walk out" technology or lack thereof. Why spend lots of money doing R&D only to find out that the concept doesn't sell? Wait for the product to be successful before spending the money to scale it up. Same as anything else.
"Do things that don't scale."
I think the idea could work well but the execution in the field was consistently very poor. There were a few of these at airports with just an intimidating gate and generally non-engaging human standing there.
It was as if they expected everyone to know what to do, but when I’d watch 99% of people just sort of looked at the store, saw the odd gate things, and then just shrugged and walked off. The stores were almost always completely empty amidst a busy concourse.
Even if the tech worked (reports say it didn’t work well) they completely missed the boat on creating a clear customer experience that navigated the new tech.
I agree, it needed a better hook to get people in the 'gates' so to speak. I don't think I've ever waited behind like maybe a single transaction at an airport convenience store, so it's not like having to fiddle with my phone to get in beats tapping a card or phone or watch at checkout. Either way most people are buying 1-3 things so it's not like it saved time scanning.
As for the big Amazon Fresh grocery stores, I only have one out of my way so I only visited once or twice, but the big things I noticed were that it had a small selection and very average prices. Not that surprising because even after buying Whole Foods, Amazon itself has terrible prices on dry goods (meaning supermarket items besides fresh food), and relies heavily on random third-party sellers with big markups for a ton of it.
If they really wanted to get people to buy into Amazon Fresh it would have taken a lot more money (and thus pretty unprofitable for a long while): Probably one way to do that would have been making it as attractive as Costco for Prime members.