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IP Interview
Published January 12, 2024

Amazon Fresh, Whole Foods, & US Online Grocery

Executive Bio

Former Head of Launch Management at Amazon Fresh

Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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A 1% rate is quite low. It seems to be one of the biggest challenges in fulfilling from a store because you have two channels depleting your inventory. It's difficult to maintain the offer online? 

Precisely. Regarding the Go stores, Amazon has been testing this technology in Amazon Go stores for a considerable time. Have you ever visited a Go store? Most of them have closed down. However, this technology was initially used there. These were small convenience stores where you would enter, identify yourself on your Amazon app, scan in, walk around the store, pick up whatever you wanted and leave. They would know, for instance, that you picked up five items and left. There was no need to check out or interact with a cashier. This exact same technology is now being implemented in Amazon Fresh stores on a much larger scale. An Amazon Go store might be a few thousand square feet, but an Amazon Fresh store is typically 40,000 square feet. These are full-sized supermarkets utilizing technology that was previously only used in a small convenience store setting.

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What was the square footage, the SKUs, what was the plan for that? What would a typical store look like?

The stores would typically be about 40,000 square feet, similar to a large supermarket. I don't remember the SKU count, to be honest. We were deploying increasingly advanced technology. The first cohort of stores had camera technology and smart shopping carts. However, by the time we were deploying that, it was already old technology. The next generation was the cameras that could see what you're putting in your cart, eliminating the need for a smart shopping cart. We called this "Just Walk Out" (JWO). We deployed three or four of these JWO stores in 2022 and were working towards all future launches being JWO.

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