Whole Foods daily shops will not feature Amazon just walk out technology, according to grocery dive.
Speaker AAgain, 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.
Speaker AMinardary reportedly said that the technology was, quote, cumbersome.
Speaker AAnd 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.
Speaker AUh, that's not very flexible, Chris.
Speaker AUh, no.
Speaker AWhat does this news signal, do you believe?
Speaker AIs it the death nail of just walk out deployments within grocery bum, bum, bum?
Speaker BOh, man.
Speaker BAnd I think it, honestly, I think it might.
Speaker BAnd kudos to the grocery dive team for getting that quote.
Speaker BI mean, that's, that's, that's kind of really salacious.
Speaker BLike, the whole system is cumbersome.
Speaker AIt's not great, for lack of a better word.
Speaker BSo I think it does potentially signal the end here.
Speaker BYou 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.
Speaker BWe 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.
Speaker BSo 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.
Speaker AYeah, 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.
Speaker AYou know, it is a place where you would want this technology to work because it's that quick in and out trip.
Speaker AYou're just doing, you know, top up shopping throughout the week on the way to or from work or whatnot.
Speaker ABut 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.
Speaker AI just, I think that it doesn't mean it's not going to work.
Speaker AI 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.
Speaker BYeah.
Speaker BAnd it just fundamentally has to work so different than it does.
Speaker BAnd what's the road to that point?
Speaker AWhat's the Runway for that, you know.
Speaker BAnd as an aside, too, because we have time, the show's running pretty fast.
Speaker BLike, what is Amazon's grocery strategy?
Speaker BDid you understand it yesterday when Claire Peters talked about it on stage?
Speaker BBecause I left more confused than I was going into that session.
Speaker AYeah, there was not a clear answer to that.
Speaker AShe definitely outlined all of the places and things that you can do in an Amazon store, like returning packages.
Speaker AYou can get delivery, but there's still a cost for that.
Speaker AAnd 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.
Speaker AAnd 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.
Speaker BIt's definitely cheaper right now.
Speaker BAnd I'm a big fan of logic chains.
Speaker BRight.
Speaker BI always drive you crazy.
Speaker AUm, I just, I mean, you always drive me crazy.
Speaker ANot specifically related to logic chains all the time, but yes, one of the factors, right?
Speaker BYeah, but yeah, the logic chain just didn't make sense to me.
Speaker BLike, 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.
Speaker BIt feels like we have all these options that make it so much simpler and in the flow of our lives.
Speaker BSo that's number one.
Speaker BAnd 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.
Speaker BAnd I'm like, but wait, you're opening up another physical store for them to go into.
Speaker BLike, where does.
Speaker BI don't, I just don't get it.
Speaker BIt doesn't stack up.
Speaker BBut anyway.