The e-commerce giant Amazon is scaling back the operations of its Amazon Go stores.
On Sunday, Amazon announced that it had closed three additional stores utilizing its Just Walk Out technology. However, it remains committed to implementing this technology for third-party franchise stores.
These convenience stores utilize AI systems to track the items customers select, allowing them to purchase without needing a cashier or formal checkout process.
In a statement, Amazon revealed that it has reduced the number of Amazon Go stores it operates by nearly half since last year, citing economic reasons for the closures.
A spokesperson explained that although the three stores performed well, the leases were not renewed due to rent challenges, which made the locations economically unsustainable.
Earlier this year, Amazon withdrew Just Walk Out technology from its next-generation grocery stores, indicating at the time that it would focus more on smaller takeout shops. This suggests that it might not prioritize its own stores.
Instead, Amazon is licensing Just Walk Out technology to several third-party convenience stores and reiterated its commitment to the Go format and the overall technology.
Currently, Amazon shares are trading at $186.51, reflecting a 2.50% increase.
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