• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Skip to navigation
Close Ad

The Spoon

Daily news and analysis about the food tech revolution

  • Home
  • Podcasts
  • Events
  • Newsletter
  • Connect
    • Custom Events
    • Slack
    • RSS
    • Send us a Tip
  • Advertise
  • Consulting
  • About
The Spoon
  • Home
  • Podcasts
  • Newsletter
  • Events
  • Advertise
  • About

Amazon Go Delays Public Opening Due To Tech Challenges

by Lauren Knope
March 28, 2017Filed under:
  • Future of Grocery
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to email this to a friend (Opens in new window)

The Wall Street Journal reported yesterday that Amazon is delaying the public opening of its first fully automated grocery store known as Amazon Go. The store, which has only been open in beta to Amazon employees in the Seattle location, was supposed open at the end of this month. This is being pushed back, due to a few glitches involving tracking items and processing payments.

Amazon reported that it was experiencing technical problems with two key areas of its “Just Walk Out” technology – the company’s payment system was unable to handle or process payments when more than 20 people were in the store at a time. The system also struggled when an item was moved from its specific location on a shelf.

The traditional grocery store has been experiencing disruption for the last several years, with the rise of e-commerce giants like Amazon and Jet.com taking aim at consumer packaged goods (CPGs). Other rising stars like meal kit delivery subscriptions and grocery store delivery give consumers more options for fresh foods like produce and meat that don’t involve setting foot in a brick and mortar store.

But Amazon’s vision for the more convenient food store utilizes existing and emerging tech like connected sensors, machine learning, RFID tags and mobile payments to implement a cashier and checkout line-free experience for consumers. Not only does it create a streamlined door-to-door shopping event for the customer, but it cuts costs for the grocer – who in this case is Amazon – and could help impact the bottom line in a field where margins are shrinking.

And it’s clear why Amazon wants to build physical stores – as much as e-commerce is making grocers in North America rethink ways to attract customers with sales, fresh foods and produce and upgraded natural food and organic offerings, Nielsen’s 2017 research shows only 10% of consumers are currently shopping online for groceries. Amazon will need a multi-prong approach to remain competitive in grocery, especially when it comes to fresh foods and non-CPG items.

Amazon Go’s tech issues don’t seem major – but they are a good reminder that full-on grocery automation is hard. There are a lot of variables to consider, especially in a busy store, where customers are moving around, bumping into each other, moving merchandise without putting it back but not actually buying it. As a reminder to automation enthusiasts, earlier versions of what Amazon is trying to accomplish – self check-out kiosks – are still widely underused in grocery stores. And those of us who have used them know all too well that often, the light above the conveyer belt will inevitably blink when a customer has a problem, beckoning a store employee over.

So the future may be automated – but it’s not clear how seamless those shopping experiences will be, at least not yet. Amazon Go’s public opening and subsequent operations will certainly be telling.


Related

Get the Spoon in your inbox

Just enter your email and we’ll take care of the rest:

Find us on some of these other platforms:

  • Apple Podcasts
  • Spotify
Tagged:
  • Amazon
  • Amazon Go
  • CPG
  • e-commerce
  • grocery
  • grocery shopping
  • RFID

Post navigation

Previous Post Live From Housewares Show : How Will Smart Home Change Housewares Industry?
Next Post Maine’s Forager the Latest to Use Tech as a Farm-to-Table Solution

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Get The Spoon in Your Inbox

The Spoon Podcast Network!

Feed your mind! Subscribe to one of our podcasts!

After Leaving Starbucks, Mesh Gelman Swore Off The Coffee Biz. Now He Wants To Reinvent Cold Brew Coffee
Brian Canlis on Leaving an Iconic Restaurant Behind to Start Over in Nashville With Will Guidara
Food Waste Gadgets Can’t Get VC Love, But Kickstarter Backers Are All In
Report: Restaurant Tech Funding Drops to $1.3B in 2024, But AI & Automation Provide Glimmer of Hope
Don’t Forget to Tip Your Robot: Survey Shows Diners Not Quite Ready for AI to Replace Humans

Footer

  • About
  • Sponsor the Spoon
  • The Spoon Events
  • Spoon Plus

© 2016–2025 The Spoon. All rights reserved.

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.