Amazon is making significant changes to its Amazon Fresh stores, as the company announced it will be removing its Just Walk Out technology in favor of implementing smart carts. The Just Walk Out technology, which allowed customers to pay for items without standing in line and receive receipts afterwards, will be replaced by smart carts that provide customers with real-time spending updates. Amazon spokesperson Carly Golden explained that the decision to switch to smart carts came after receiving feedback from customers who wanted the convenience of skipping the checkout line, but also desired to view their receipts and savings as they shopped.

This move is part of Amazon's efforts to revamp its grocery chain, which has faced challenges in finding the right formula to have a larger impact on the physical grocery market. Despite initial predictions that Amazon's entry into the grocery sector would disrupt the market, the company has struggled to find success. In his annual letter to shareholders, Amazon CEO Andy Jassy acknowledged the challenges and stated that the company was working on finding the right formula for its grocery business.

Amazon has already shut down some underperforming Amazon Fresh and Go stores and paused expansion on Fresh stores. However, the company recently reopened three Fresh stores in Los Angeles, California, and is now focused on selectively opening new Fresh stores and remodeling existing ones. The Just Walk Out technology will still be available in Amazon Go stores and some smaller Amazon Fresh stores in the U.K., as well as being offered to third-party retailers.

Overall, Amazon's decision to replace Just Walk Out technology with smart carts in its Amazon Fresh stores reflects the company's commitment to meeting customer needs and improving its grocery business in a competitive market.