In this Fast Five Short We discuss why Whole Foods has decided not to implement Amazon's Just Walk Out technology in its daily shops, signaling potential challenges for the future of this technology in grocery retail. Christina Minardi, Whole Foods' executive vice president, described the system as cumbersome and inflexible, particularly in a retail environment that requires frequent changes. This raises questions about the viability of Just Walk Out as a competitive advantage, especially when more flexible alternatives like scan-and-go systems are emerging. The discussion highlights a broader uncertainty regarding Amazon's grocery strategy and the effectiveness of its current offerings compared to traditional retailers like Walmart. As the grocery landscape evolves, the need for adaptable and cost-effective solutions becomes increasingly critical.

The episode discusses the significant decision by Whole Foods to exclude Amazon's Just Walk Out technology from its daily shops, highlighting the challenges and limitations associated with its implementation in grocery retail. Christina Minardi, an executive at Whole Foods, articulated that the technology, while innovative, is not suitable for a retail space that frequently changes products and displays. The dialogue focuses on how the cumbersome nature of the technology may hinder its adoption in a grocery setting, where flexibility and adaptability are paramount. The hosts contemplate whether this decision signals a broader trend away from automated checkout systems in grocery stores and what it means for the future of retail technology overall.

As the discussion unfolds, the hosts emphasize the increasing importance of flexibility in grocery shopping environments, suggesting that the high costs and complexity of Just Walk Out technology may deter other retailers from pursuing similar paths. They also explore alternative technologies such as robotics and scan-and-go systems that could offer retailers the insights needed to manage inventory more effectively without the burdensome infrastructure of camera systems. The episode provides a rich analysis of the technological landscape in grocery retail and considers how retailers must adapt to meet evolving consumer expectations.

In addition to examining the implications of Whole Foods' decision, the podcast also scrutinizes Amazon's overall grocery strategy. The hosts express concerns about the lack of clarity in Amazon's approach, especially following a recent presentation that left them more confused than informed. They critique the idea that grocery shopping has become more complicated, arguing instead that the multitude of options available today simplifies the process for consumers. By questioning the logic behind opening more physical stores to simplify shopping, the episode encourages listeners to think critically about the strategies retailers are employing to capture market share in an increasingly competitive landscape.

Takeaways:

• Whole Foods' daily shops will not utilize Amazon's Just Walk Out technology due to flexibility concerns.
• Christina Minardi described Just Walk Out technology as cumbersome and ill-suited for frequently changing displays.
• The limitations of the current Just Walk Out technology may signal its decline in grocery retail.
• Grocery retailers are exploring alternative technologies that offer more flexibility than Amazon's system.
• There's skepticism about Amazon's grocery strategy and whether it effectively meets customer needs.
• The debate continues about the practicality of grocery shopping evolution amidst many competing options.

Companies mentioned in this episode:

• Whole Foods
• Amazon
• Walmart
• BJ's
• Schnucks

For the full episode, sponsored by the the A&M Consumer and Retail Group, Ownit AI, Avalara, Mirakl, and Ocampo Capital, head here: https://www.youtube.com/watch?v=w0O2k1chOTM&t=501s

Whole Foods daily shops will not feature Amazon just walk out technology, according to grocery dive.

Again, Christina Minardi, executive vice president of growth and development for Whole Foods and Amazon, said during a store tour ahead of the opening day of the first daily shop, it isn't suitable for a retail space that frequently changes and rotates displays.

Minardary reportedly said that the technology was, quote, cumbersome.

And that, quote, if you have a bin of tomatoes and you want to all of a sudden just build some mozzarella on an ice bin and you can't because that has to be mapped to the cameras and it takes weeks, end quote.

Uh, that's not very flexible, Chris.

Uh, no.

What does this news signal, do you believe?

Is it the death nail of just walk out deployments within grocery bum, bum, bum?

Oh, man.

And I think it, honestly, I think it might.

And kudos to the grocery dive team for getting that quote.

I mean, that's, that's, that's kind of really salacious.

Like, the whole system is cumbersome.

It's not great, for lack of a better word.

So I think it does potentially signal the end here.

You know, we, we've already talked about two other options on this show that, from the retailer and the CPG perspective, give you the same level of insight that Amazon's just walk out technology does.

We haven't even brought robotics into the discussion yet on the inventory side of things, which is much cheaper to deploy than a, you know, fixed position camera system as well, like I, like schnucks is using, and bjs and other grocers are starting to get on the trend with that, too.

So at the end of the, at the end of the day, the idea of being able to just walk out of the store as the selling point or as the differentiation point against all these other technological options doesn't seem like it stacks up to me anymore.

Yeah, it's a big bummer, too, I think, from my perspective, because especially in these daily shops, like they're meant to be, like just a leg up on Amazon go shops.

You know, it is a place where you would want this technology to work because it's that quick in and out trip.

You're just doing, you know, top up shopping throughout the week on the way to or from work or whatnot.

But I, you know, I think the issue for me here is that, yes, it's going to, it's going to be a difficult road ahead for them to sell this technology to other grocers, especially when, you know, more grocers are trying to look for flexibility like you were talking about, and scan and go and carts provide that.

I just, I think that it doesn't mean it's not going to work.

I just think where we are currently, Amazon's engineering teams have a lot of work of experimentation, and there has to be a lot of reduction in hardware costs as well, compute costs as well to make this what they want it to be.

Yeah.

And it just fundamentally has to work so different than it does.

And what's the road to that point?

What's the Runway for that, you know.

And as an aside, too, because we have time, the show's running pretty fast.

Like, what is Amazon's grocery strategy?

Did you understand it yesterday when Claire Peters talked about it on stage?

Because I left more confused than I was going into that session.

Yeah, there was not a clear answer to that.

She definitely outlined all of the places and things that you can do in an Amazon store, like returning packages.

You can get delivery, but there's still a cost for that.

And I think that's the other part of this, too, that, you know, wasn't addressed yesterday, is that, yes, you have prime, but it's an extra charge, extra monthly charge for prime members to get some of those grocery stores, to get access to the grocery discount.

And all in all, to me, it's still easier to go to a mass merchant like a Walmart and get all of those things done in one spot and on a timeline that suits me.

It's definitely cheaper right now.

And I'm a big fan of logic chains.

Right.

I always drive you crazy.

Um, I just, I mean, you always drive me crazy.

Not specifically related to logic chains all the time, but yes, one of the factors, right?

Yeah, but yeah, the logic chain just didn't make sense to me.

Like, she was upstairs up on stage saying, like, grocery shopping has gotten so difficult in the last 20 years, and I was like, really has.

It feels like we have all these options that make it so much simpler and in the flow of our lives.

So that's number one.

And then number two, she also said something to the effect of, like, people go to five or six grocery stores, you know, on a weekend, and we want to simplify that.

And I'm like, but wait, you're opening up another physical store for them to go into.

Like, where does.

I don't, I just don't get it.

It doesn't stack up.

But anyway.