Whole Foods To Get Amazon's Cashier-Less Technology: What Investors Should Know

If speed and convenience are the names of the game for shoppers, Amazon.com, Inc. (NASDAQ: AMZN) could be ahead of the competition with its Just Walk Out technology. The company has been rolling out this initiative for several business segments and is now bringing it to Whole Foods.

What Happened: Amazon announced Wednesday that two new Whole Foods stores in Washington D.C. and Sherman Oaks, California will get Just Walk Out technology next year.

The move follows Amazon Go stores in the U.S. and Amazon Fresh stores in the U.S. and U.K. having the technology for shoppers to scan items as they shop and avoid checkout lines and time.

Just Walk Out will allow customers to scan a QR code in the app, inserting a credit or debit card linked to their Amazon account, or hover their palm over the Amazon One palm-scanning system. Customers will shop like normal and then pay at the end of their trip via their pre-selected method.

A digital receipt will be available for customers through the Whole Foods Market app.

There is no timeline to when other Whole Foods locations will receive the technology upgrades.

Customers do not have to be Amazon Prime members to enjoy the Just Walk Out technology but will need to have an Amazon.com account. Customers can also choose to use a self-checkout lane if they prefer.

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Why It’s Important: Amazon has pushed for technology upgrades in its physical-owned stores due to customer demand.

“Several years ago, our physical retail team asked ourselves how we could make the physical shopping experience better for customers. We saw that customers didn’t like standing in checkout lines, which is how we came up with the idea to build Just Walk Out technology,” Amazon.com stated.

The company said its gotten great feedback from customers who “love being able to quickly and easily shop and skip the checkout line.”

Amazon announced last year that it would license out its Just Walk Out technology to other retailers. The initial focus looks to be for convenience stores, airport shops and arena kiosks, reported Engadget.

Amazon wouldn’t rule out licensing its technology to larger rivals such as Walmart Inc (NYSE: WMT) or Target Corporation (NYSE: TGT) as well.

Whole Foods' push to this technology could put pressure on larger retailers to acquire a company with similar technology, build their own or license from Amazon in order to meet customer demands and preferences.

Similar to its AWS offering, Amazon could become a service provider for retailers utilizing its technology and infrastructure. 

AMZN Price Action: AMZN shares are trading flat at $3,525.50 on Wednesday afternoon.

Photo: Courtesy Whole Foods