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Amazon Closing Fresh and Go Stores

https://finance.yahoo.com/news/amazon-closing-fresh-grocery-convenience-150437789.html
69•trenning•2h ago

Comments

HardCodedBias•2h ago
Once their vision for "grab and go" vanished due to technological infeasibility [1] the entire premise for the stores vanished as well.

I suspect that they wanted to take a hail marry to see if somehow it was possible to get much greater efficiency compared to standard grocers, and it looks like that failed.

[1] it may come back. The technology is rapidly improving but they have bigger fish to fry ATM.

ge96•2h ago
What's interesting I know of a company in the industrial space that is trying to do this still (stuff on a shelf, grab and go, no human interaction).
add-sub-mul-div•2h ago
Did the humans pretending to be the AI unionize?
willio58•2h ago
I thought they already did close them.

I know at some point they got caught basically paying people to watch cameras to figure out what products people we're grabbing. I'm sure were either at the point or very close to the point where AI can successfully do this basically 100% of the time.

So I doubt it's the tech aspect of this, more just the grossness a person feels walking into a store with Amazon's name on it. Compare this to whole foods.

xnx•2h ago
Coincidentally(?) they are open their first big box retail store: https://www.cnbc.com/amp/2026/01/09/amazon-plans-first-big-b...
brightball•1h ago
That will be interesting to watch.
rob74•1h ago
When I saw the picture at the start of the article, I briefly thought they would do it like IKEA and let people pick the articles directly from the Amazon warehouse...
joezydeco•1h ago
If you've ever been in a Fresh store, that's kind of what it was as well. I saw maybe 20% off-the-street customers, the rest were AMZN workers filling delivery orders.
cmiles8•1h ago
Their fate seemed sealed when it was revealed a bit back that the “just walk out” technology was more hype than substance. Just lots of people watching what you’re doing on camera vs an actual AI that worked well at mass deployment scale. A good idea, poorly executed.

Reports said the “AI” was largely 1000+ people in India watching the cameras.

If Amazon actually managed to build AI that worked well at a decent cost point it would have been great since nobody likes those silly self checkout machines.

What’s amusing about all of this is that before it got leaked that it was basically a bunch of people in India watching cameras Amazon folks spoke about the tech like there was some super secret AI they developed. Since that story broke nobody there seems to want to talk about “just walk out” anymore.

lumost•1h ago
Even that didn't work well, when I was at an airport recently I had investigated 4-5 items as I had some time to kill. When I was walking out it wanted to bill me for 70 dollars even though I only had a bottle of water and a candy bar.

I have little trust that a corporate behemoth will do right by me and refund the discrepancy at an unspecified later time as it says it will on checkout.

itsamario•1h ago
They pay the most for human involvement. Wages, special conditions, and insurance are exponentially higher than their plans of warehouse to end-user via lockers and drones.
usefulposter•1h ago
AI: Actually Individuals¹

¹ Individuals manning a labyrinthine system of cameras and sensor fusion, like hawks, logging the precise moment you plop a Twix into your basket! Praise Bezos!

hackingonempty•1h 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."

cmiles8•1h ago
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.

xp84•53m ago
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.

bsimpson•1h ago
That 90s IBM commercial was pretty rad though.
chilmers•1h ago
Yeah, we had one near us, close to the metro exit, and it was genuinely great when you needed to grab something for dinner on the way home. Once you knew where things were, you could be in and out in 20 seconds. That said, it never seemed busy compared to other grocery shops in the area, so I think a lot of people were put off by it feeling "weird" to shop without checking-out.
goatforce5•16m ago
You can use the Apple Store app to purchase physical items at Apple retail locations (smaller items like cables or cases). I've used it a couple of times, and I feel very awkward using it, so much so that I'll walk out kinda waving the receipt/acknowledgement screen around so that staff/security can hopefully see I'm not nicking something.
bayarearefugee•55m ago
> Since that story broke nobody there seems to want to talk about “just walk out” anymore.

Optimus and Robotaxi are just as fake and Elon Musk never shuts up about them.

I guess Amazon never learned the important lesson that the OP meta for modern technology companies is just to consistently and blatantly lie.

in_a_hole•38m ago
A.I. = Actually Indians
Fernicia•32m ago
> Reports said the “AI” was largely 1000+ people in India watching the cameras.

This was totally fake news though. Those people were labeling training data and reviewing low confidence labels, after the fact. There wasn't ever live monitoring of shoppers.

AppleAtCha•19m ago
Do people really have problems with self-checkout? I use it all the time in box stores like Kroger, Walmart, Home Depot, etc. It seems to work just fine for me and doesn't add more than a minute or two vs just walking out of the store.
vikingerik•3m ago
Self checkout is fine, if the happy path works. If everything scans once and doesn't accidentally scan a second time, if everything scans at the price you thought it was posted for, if you don't have any controlled substances requiring approval, if the weight sensor doesn't freak out incorrectly or from putting your bags on it, if it accepts any coupons you have, if it accepts and processes your payment method correctly.

If everything goes fine, self checkout is fine. But the exception handling process for any of those is thoroughly aggravating, as you wait and try to get the attention of the one overworked attendant dealing with a dozen of these machines constantly throwing exceptions, as the computer screams at you for whatever it thought you were doing wrong.

AppleAtCha•39s ago
Yeah I agree that it can potentially go wrong but in my experience here in east TN the machines have gotten better to the point that hasn't happened for me in the past few years. Also it seems like the "just walk out" process would have more potential error modes but I never visited one.
blinding-streak•1h ago
The headline in their corporate press release says "Amazon doubles down on online grocery delivery and Whole Foods Market expansion to reach more customers"

That's one way to spin things I guess.

proee•1h ago
Has anyone used their go stores? I'm curious how the experience felt from a consumer standpoint. Do you feel welcomed or more like a thief?

I remember WAY back in the day when Arby's implemented touch screen ordering (on CRTs!) and it was a very quirky process. An Arby's employee would sit behind the counter and stare at you while you spent 5 minutes poking a CRT display. Very slow and very impersonal. They discontinued them in a short period of time.

semiquaver•1h ago
They’re fine and work as advertised. One weird thing is you don’t get the receipt for 10-20 minutes, presumably while humans are viewing the footage.

The main thing I use it for is convenient returns, which is why I’m disappointed in this news. I hardly ever buy things there other than things like gum or chips.

sheept•1h ago
our university has been rolling out just walk out markets across campus due to rampant stealing. shopping there doesn't feel like stealing, but the store design feels oppressive with racks of cameras and thick black shelves because it's designed for sensors first not humans

one minor downside (especially since I don't live on campus anymore) is that in order to walk around and peruse the shelves, I have to give them my payment info just to enter

kube-system•1h ago
Every time I walk into a McDonalds I see people who will rather stand 5 minutes at the counter waiting for a human cashier than use one of the available kiosks. I'm sure some are paying cash but there are certainly people who are just not comfortable with technology.

The Go stores were a great experience but they would certainly be uncomfortable for anyone other than early-adopter or tech-forward types of people. I would just walk in with my own bag, and put items directly from the shelf into the bag, and walk out the door. It was extremely convenient and fast once you got over how weird it felt.

I think they could have done a lot more in giving social clues on both the way in and way out.

giraffe_lady•1h ago
A lot of people have trouble using those and it's not just tech discomfort or whatever. You have to be able to hold your arms up in front of you, touching specific points in space. The UI is not good and does not provide good moment-to-moment feedback about whether you've pressed a button or which one. You have to be moderately-to-strongly literate, you have to wrap your head around the menu organization, know what you're looking for by name and be able to guess where it is in this system.

I've watched so many people struggle to use these machines for so many different reasons. Pretty much anyone with a physical or cognitive disability will be better off with the cashier. Sucks they have to wait much longer for one now.

kube-system•32m ago
I think the systems are good in the context of "computer ordering systems", but not great in the context of "food accessibility". They're built with a lot of inherent presumptions that likely apply to most of the peer groups of the people designing it, but certainly do not in the field.

I am quite privileged and I know numerous people who might have trouble telling you the name of the meal they want even if presented with a hard copy of a menu.

bluedino•53m ago
McDonalds solved that problem by basically not having employees go up to the counter anymore.
freedomben•1h ago
I'm probably not a typical case, but I felt like my privacy was massively invaded. The concept was cool, but I felt like every muscle twitch was being scrutinized and recorded forever. I was also in constant fear that the computer would charge me for things I didn't buy and getting it corrected would be a nightmare. I also felt like if there was a bug or malfunction in the system and it didn't charge me for something (which I wouldn't know about immediately) they would come after me as a shoplifter with the full force of a mega corporation with unlimited resources. It felt like there were a thousand high powered lawyers that I couldn't see, watching my every move waiting for some mess up (even though I have no intention whatsoever other than finding and paying for the product I wanted).

So no I didn't feel like I was a thief. But I felt like they assumed I was a thief. My guess is most stores are heavily surveilled nowadays, so it might be unreasonable for me to feel this way with Amazon but not Walmart or Target or Kroger, but that's how it felt.

themaninthedark•32m ago
Walmart and Kroger near me now have one way metal cattle gates that you have to pass through when you enter. Makes me feel like cattle and that their assuming I am a thief. Trips to those locations have dropped.

The Home Depot cameras and screens that "BING BONG" loudly as you pass by to get you to notice them showing that they are recording you are also highly annoying.

I wish there was a greater variety of hardware stores near me...

mitaphane•46m ago
I use the one situated in Seattle, Amazon HQ. It's just like self-checkout at a grocery store with fewer steps. The entrance/payment mechanism is Amazon One (a palm scan associated with a payment wallet). At Whole Foods, it's used as an optional payment option at checkout.

It's convenient; I only ever remember one problem where it thought I had purchased an item that I picked up and decided on something else. I disputed it online and it was resolved in a day.

PKop•29m ago
> I disputed it online

Oh man this is what consumers would love to do, have to constantly adjudicate false positives online which they'd have to track to make sure didn't happen. What nonsense.

wnevets•1h ago
Fortunately my Amazon branded subcutaneous chip still works at Wholefoods.
augusteo•1h ago
The "1000 people in India watching cameras" reveal was the moment the magic died. Once you know the wizard is just a guy behind a curtain, you can't unsee it.

The interesting question isn't whether the tech was ready. It wasn't. The question is whether Amazon learned anything useful from the attempt.

Computer vision for retail checkout is a legitimate hard problem. Occlusion, similar-looking products, people changing their minds. I've worked on CV pipelines and the gap between "works in the demo" and "works at scale" is brutal.

My guess: they collected a ton of training data from those human reviewers. Whether they'll use it for a v2 or just write it off, who knows.

PKop•24m ago
Aside from the magic dying, which I agree with, another commenter in this thread says there could be false positives (whether from Indians or AI doesn't matter) you'd have to 1) notice by studying your bill later and 2) resolve by requesting refunds online.

Knowing this, it was over before it ever started. Beyond the masses of people already having aversion to the oddness of how it worked and likely never wanting to try it, these and others would swear off the store forever the first time they ever got charged for something they didn't take. No one wants to monitor and fix erroneous purchase errors.

jordemort•1h ago
I really liked the local Amazon Fresh, until they discontinued "just walk out" and replaced it with those hellish smart carts. I scanned one item successfully with the cart, got completely stuck trying to get it to scan a second one, handed the cart back to the employee, and never went back.
dfajgljsldkjag•1h ago
I like Whole Foods because it feels warm and the food looks good. The Amazon stores felt like walking inside a vending machine and that is not how people want to buy dinner.
maininformer•1h ago
This will forever be a masterpiece

https://youtu.be/CNoa-9TBH30?si=Zl7hdZ1fBqeXHM_8

dopamean•50m ago
I honestly thought they closed them alreay.
justincormack•46m ago
Every time I check I am still amazed that the Amazon Hair Salon in London is still open. https://www.amazon.co.uk/b?node=26247109031
fencepost•38m ago
The Fresh stores are kind of a weird shopping experience with a mix of normal, overpriced and bizarrely cheap at different times.

I've gotten into the habit of stopping in to wander the aisles and check prices because of it (e.g. I stocked up on a bunch of canned soup when most (but not all) Progresso soups were $0.44 a month or two back, and I picked up some microwavable rice+quinoa pouches for my wife at $0.35 each a couple weeks ago, but the inconsistency and overall not great prices mean it can't be my go-to grocery destination.

I'm sure the one by me will be closing since there's a significantly larger Whole Foods just a few miles away.

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