Amazon Go is permanently shutting down six of its stores on April 1.
Amazon Go, the cashier-less convenience store concept that was supposed to revolutionize retail, is shutting down six of its stores on April 1. The closures will affect stores in New York City, Seattle and San Francisco.
The company said it is closing the stores after a careful review of their performance and financial expectations. The company said it considers many factors when making such decisions, such as location, customer needs, and the proximity of other nearby stores.
Why is Amazon Go closing stores?
Amazon Go was launched in 2018 as a futuristic way of shopping that eliminated the need for checkout lines or cashiers. Customers could simply scan their phones at the entrance, grab what they wanted and walk out. The store’s sensors and cameras would automatically charge their Amazon accounts for what they took.
However, the concept faced several challenges that limited its appeal and profitability. Some customers were uncomfortable with the idea of being tracked by cameras and sensors. Some were confused by how the system worked or worried about being charged incorrectly. Some preferred to pay with cash or interact with human workers.
The pandemic also hurt Amazon Go’s business as fewer people visited physical stores or commuted to work near them. The company had to temporarily close some of its locations due to lockdowns or reduced demand.
How are employees and customers reacting to Amazon Go’s closures?
The closures will affect about 100 employees who worked at the six stores. Amazon said it will try to find them other roles within the company or provide them with severance pay.
Some customers expressed disappointment and surprise over losing their convenient shopping option. Others said they understood Amazon’s decision and hoped that the company would improve its technology and reopen someday.
What Are Your Thoughts?
What do you think about Amazon Go’s closures? How do you feel about the cashierless shopping experience? Do you shop at Amazon Go or other similar stores?
Share your thoughts and experiences in the comments section below!