Amazon to shut 8 of its cashierless Go comfort shops

“Like every bodily retailer, we periodically assess our portfolio of shops and make optimization choices alongside the way in which,” an Amazon spokesperson stated in an emailed assertion. “We stay dedicated to the Amazon Go format, function greater than 20 Amazon Go shops throughout the U.S., and can proceed to study which places and options resonate most with prospects as we hold evolving our Amazon Go shops.”

The tech big stated it could work to seek out new positions for the affected employees inside Amazon.

In February, Chief Monetary Officer Brian Olsavsky warned Amazon
AMZN,
+3.01%
would shut some Go and Recent shops “with low-growth potential” as the corporate seemed to chop prices following its worst annual loss on file.

Amazon Go shops debuted in 2018 with out cashiers or checkout traces, as prospects paid routinely by a smartphone app. On the time, Amazon reportedly deliberate to open 3,000 such shops by 2021.

However pandemic shutdowns and a lagging financial system have soured a few of Amazon’s brick-and-mortar plans. Final yr, the e-commerce big closed dozens of its bodily shops — together with the Amazon 4-Star, Books and Pop Up traces — whereas refocusing on Amazon Recent, Complete Meals Market, Amazon Go and Amazon Type shops.

Final yr, Amazon introduced plans to launch larger-format Go shops in suburban areas, and in February, Chief Govt Andy Jassy advised the Monetary Instances that Amazon nonetheless needs to “go massive” on sure bodily shops.

Amazon introduced it could lay off about 18,000 employees in January, and final week, the Seattle-based tech big paused building of its second headquarters in Arlington, Va.

Amazon shares are up 13% yr so far, however have sunk 35% over the previous 12 months. Compared, the S&P 500
SPX,
+1.61%
is up 5% in 2023 and down 6.5% over the previous yr.