Amazon.com Inc (NASDAQ: AMZN) is breaking new ground in the world of cashierless shopping technology, aiming to extend its innovative system beyond convenience and grocery stores to clothing retail.
The retail and cloud-computing behemoth recently unveiled an updated version of its Just Walk Out technology, explicitly designed for the apparel industry.
This cutting-edge iteration employs radio frequency identification (RFID) tags to monitor clothing items throughout the store, according to Bloomberg reports.
Traditionally, Amazon's cashierless shopping system has relied on ceiling-mounted cameras and shelf sensors to identify shoppers' selections, automatically charging their credit cards as they exit the store.
However, this system occasionally encountered challenges distinguishing between items of similar weight and appearance.
The introduction of RFID tags upgrades the process. Amazon.Com affixed these tags to individual clothing items, which the stationary readers closely monitor within the store.
Although RFID technology has served for decades, primarily for inventory management and theft prevention, it now enhances the retail experience. Amazon disclosed that Avery Dennison Corp provided the RFID equipment.
Amazon's cashierless Just Walk Out technology has already been implemented in select Go convenience stores, Fresh grocery outlets, and licensed stores, including sports concessions and airport shops.
However, it remains uncertain how many apparel retailers will embrace the RFID version due to concerns about relying on a significant competitor for crucial in-store technology.
Amazon conducted a quiet pilot of its RFID-enabled Just Walk Out system at fan shops within two Seattle sports arenas: Lumen Field, home to the NFL's Seahawks, and Climate Pledge Arena, where the NHL's Kraken play. Amazon's CEO Andy Jassy holds a minority ownership stake in the Kraken.
Amazon.Com has been upgrading its shopping features, intensifying rivalry with Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, Pinterest, Inc (NYSE: PINS), and TikTok.
Price Action: AMZN shares traded lower by 2.51% at $136.47 on the last check Tuesday.