WHOLE Foods Market has confirmed that its new small-format Daily Shop stores will not be equipped with a popular payment method.
The Just Walk Out frictionless checkout technology won’t be available at the major supermarket chain as its executive claims it is “very restricted”.
Whole Foods confirmed its new store format won’t feature a popular payment method[/caption]
A Whole Foods executive said the technology’s requirement for a fixed store layout has proven ‘very restricted’ for grocery operations.[/caption]
The decision comes months after both Amazon Fresh and Whole Foods deemed the automated payment system unfit for grocery environments, choosing to pivot its application to other retail settings.
Amazon has been aggressively rolling out its Just Walk Out technology in smaller, quick-trip retail formats like airport stores and stadium shops.
But Whole Foods’ executive vice president of growth and development, Christina Minardi, revealed the company’s decision to move in a different direction, Grocery Dive reports.
According to Minardi, the technology’s requirement for a fixed store layout has proven “very restricted” for grocery operations.
“If you have a bin of tomatoes and you want to, all of a sudden, just build some mozzarella on an ice bin, you can’t,” Minardi explained.
She added that the entire setup would have to be meticulously mapped to the cameras, a process that could take weeks.
This flexibility in layout is essential to the new Daily Shop format, where displays and large cases are designed to move and rotate based on customer traffic and the store’s evolving inventory.
Whole Foods found the Just Walk Out technology cumbersome for this type of dynamic retail space.
The limitations were also felt in the two full-format Whole Foods locations that initially tested the system, leading to its eventual removal.
Earlier this year, Whole Foods announced it would pull the technology from its two pilot locations to ensure a more “consistent shopping experience” across its stores.
Both stores now rely on traditional checkout methods, including self-checkout and manned registers.
However, while Whole Foods is stepping away from Just Walk Out, it will continue to integrate Amazon One—a palm-based payment system—across all U.S. stores, including the new Daily Shop locations.
This technology has proven to be a better fit for the company’s operational needs and customer experience.
Although Just Walk Out may not be returning to Whole Foods anytime soon, Amazon has not halted its innovation.
Over the summer, Amazon introduced an advanced AI model designed to make the technology faster, more accurate, and less expensive to implement.
The company is also expanding the use of Just Walk Out in fast-paced environments like universities, stadiums, airports, and amusement parks.
Minardi did not completely rule out the possibility of revisiting Just Walk Out in the future, suggesting that as the technology evolves, it could once again be considered for Whole Foods.
But, for now, the company’s focus remains on a payment experience that aligns with the flexible and frequently changing nature of its stores.
What is Just Walk Out technology?
JUST Walk Out technology is a checkout-free shopping system developed by Amazon that allows customers to enter a store, pick up items, and leave without going through a traditional checkout process.
The technology uses a combination of sensors, cameras, computer vision, and artificial intelligence to track what items customers take from or return to shelves.
Customers enter the store by scanning a QR code using the store’s app or their payment card at the entrance.
As customers pick up or return items to the shelves, the system automatically detects and tracks these actions. It uses sensors, shelf cameras, and AI to monitor movement and keep an accurate tally of items.
When customers are finished shopping, they simply walk out of the store without needing to stand in line or go through a traditional cashier checkout process.
Once the customer leaves, their account (linked to the app or payment method used upon entry) is charged for the items they took, and they receive a digital receipt.
This technology is used in Amazon Go stores and is being licensed to other retailers. It eliminates the need for human cashiers, reduces wait times, and offers a seamless shopping experience.
