JUST WALK OUT TECHNOLOGY.

In recent months, Amazon have brought their ‘AmazonFresh’ (Amazon Go in the U.S) convenience store concept to the U.K, opening a number of stores in Greater London. These stores have been much heralded due to their disruptive and innovative use of ‘Just Walk Out’ technology - a technology developed by Amazon, which has the potential to revolutionise the retail experience as we know it. This cutting-edge concept promises to eliminate long checkout queues and redefine convenience for shoppers worldwide. In this article, we explore the ins and outs of Just Walk Out technology, its implications, and the possible future it holds for the retail industry.

In the last two years, the ‘top five grocers’ in the U.K have developed their own ‘Just Walk Out’ convenience store formats, to test and understand how this technology can support consumer needs and protect operating overheads - in some respects, the mass roll-out of this retail format is still under-review. Lets take a look at the the concept in more detail, to understand and evaluate future mass roll-out.

What is Just Walk Out Technology?

Just Walk Out technology is a cashier-less shopping experience that uses a combination of advanced technologies to streamline the purchasing process. The concept was pioneered by Amazon with its Amazon Go stores, which first opened to the public in 2018. Since then, this innovative technology has garnered significant attention and interest from consumers and retailers alike.

The core idea behind Just Walk Out technology is to eliminate the need for traditional checkout processes. Shoppers can enter a store, pick up the items they desire, and simply walk out when they are done. The technology tracks the items selected and automatically charges the customer's account, making physical cashiers and checkout counters a thing of the past.

How Does Just Walk Out Technology Work?

Implementing Just Walk Out technology requires a seamless blend of various cutting-edge technologies:

Computer Vision: High-resolution cameras are strategically placed throughout the store to capture the movements of customers and identify the items they pick up or put back on the shelves. Advanced computer vision algorithms analyse this data in real-time, ensuring accurate item recognition.

Sensor Fusion: Beyond computer vision, Just Walk Out stores also utilise weight sensors, RFID tags, and other sensor technologies to further enhance accuracy. These sensors can detect when an item is picked up or returned to the shelf, providing redundancy and reducing the risk of errors.

Machine Learning and AI: To continuously improve the system's accuracy, machine learning algorithms process vast amounts of data, learning from past shopping patterns and making predictions about the items customers are most likely to purchase together.

Mobile Apps and Accounts: Customers need a dedicated mobile app linked to their payment accounts to use Just Walk Out technology. This app generates a QR code or similar identification for each customer, allowing the system to associate the items selected with the respective account.

Cloud Infrastructure: All the data generated by the cameras and sensors is sent to a cloud-based processing system. This system handles the complex computations, facilitates item recognition, and manages the payment processes in real-time.

Benefits of Just Walk Out Technology

Convenience: The most apparent advantage of Just Walk Out technology is the convenience it offers. Shoppers no longer have to endure long checkout lines, making shopping a quicker and more efficient experience.

Increased Efficiency: With no need for manual checkouts, store staff can focus on restocking shelves, assisting customers, and providing a better overall shopping experience.

Enhanced Customer Insights: Just Walk Out technology generates valuable data on customer preferences, shopping habits, and buying patterns. Retailers can use this data to optimise inventory, layout, and product placement.

Reduced Shrinkage: As the system accurately tracks all items, the risk of theft and shoplifting is significantly reduced, leading to less shrinkage and potential cost savings for retailers.

Scalability: This technology can be easily scaled and applied to various types of retail establishments, from small convenience stores to large supermarkets, making it adaptable for different business models.

Challenges and Concerns

As with any disruptive technology, Just Walk Out faces some challenges and concerns:

Privacy: Some customers may be uncomfortable with the level of tracking and surveillance involved in this technology, raising concerns about data privacy.

Initial Investment: Implementing the infrastructure required for Just Walk Out stores can be costly, making it more accessible to larger retailers with substantial resources.

Technical Issues: System glitches or errors could result in incorrect charges or discrepancies, potentially leading to customer dissatisfaction.

Job Displacement: Widespread adoption of this technology may lead to a reduction in cashier positions, potentially impacting employment in the retail sector.

The Future of Just Walk Out Technology

Despite the challenges, Just Walk Out technology has the potential to shape the future of retail. As the technology matures and becomes more cost-effective, we can expect to see an increase in its adoption across various retail formats. Smaller businesses may adopt similar technology through partnership with larger retail platforms, promoting a more inclusive retail landscape.

Moreover, as AI and machine learning continue to advance, Just Walk Out technology could become even more sophisticated, offering personalised recommendations to customers and creating an even smoother shopping experience. Retailers might also explore integration with online shopping, allowing customers to transition seamlessly between physical and virtual stores.

MASS CONSUMER ADOPTION?

Just Walk Out technology is a groundbreaking concept that holds great promise for the future of retail. Its ability to provide unparalleled convenience and efficiency has the potential to redefine the shopping experience for consumers worldwide. While there are challenges to overcome, the ongoing advancements in technology and consumer acceptance suggest that Just Walk Out will likely become an integral part of the retail landscape, shaping how we shop for years to come. As we embrace this technological revolution, it is essential to strike a balance between convenience, privacy, and inclusivity to ensure a brighter future for retail.

This excerpt is from a bigger report that we created for a client in 2021 - if you’d like to read more, please get in touch.