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Amazon to close 8 of its cashierless Go convenience stores

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Amazon.com Inc. will close eight of its cashierless convenience stores as part of a broader plan to slash costs.

Four Amazon Go stores in San Francisco will close, along with two in New York City and two in Seattle, effective April 1.

“Like any physical retailer, we periodically assess our portfolio of stores and make optimization decisions along the way,” an Amazon spokesperson said in an emailed statement. “We remain committed to the Amazon Go format, operate more than 20 Amazon Go stores across the U.S., and will continue to learn which locations and features resonate most with customers as we keep evolving our Amazon Go stores.”

The tech giant said it would work to find new positions for the affected workers within Amazon.

In February, Chief Financial Officer Brian Olsavsky warned Amazon
AMZN,
+3.01%

would close some Go and Fresh stores “with low-growth potential” as the company looked to cut costs following its worst annual loss on record.

Amazon Go stores debuted in 2018 without cashiers or checkout lines, as customers paid automatically through a smartphone app. At the time, Amazon reportedly planned to open 3,000 such stores by 2021.

But pandemic shutdowns and a lagging economy have soured some of Amazon’s brick-and-mortar plans. Last year, the e-commerce giant closed dozens of its physical stores — including the Amazon 4-Star, Books and Pop Up lines — while refocusing on Amazon Fresh, Whole Foods Market, Amazon Go and Amazon Style stores.

Last year, Amazon announced plans to launch larger-format Go stores in suburban areas, and in February, Chief Executive Andy Jassy told the Financial Times that Amazon still wants to “go big” on certain physical stores.

Amazon announced it would lay off about 18,000 workers in January, and last week, the Seattle-based tech giant paused construction of its second headquarters in Arlington, Va.

Amazon shares are up 13% year to date, but have sunk 35% over the past 12 months. In comparison, the S&P 500
SPX,
+1.61%

is up 5% in 2023 and down 6.5% over the past year.

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Jacob Keiter is a husband, a writer, a journalist, a musician, and a business owner. His journey to becoming a writer was one that was paved with challenges, but ultimately led him to find his true calling. Jacob's early years were marked by a strong desire for creative expression. He was always drawn to music, and in his youth, he played in several bands, chasing the elusive promise of fame and success. However, despite his best efforts, Jacob struggled to find the recognition he craved. It wasn't until he hit a low point in his life that Jacob discovered his love for writing. He turned to writing as a form of therapy during a particularly difficult time, and found that it not only helped him to cope with his struggles, but also allowed him to express himself in a way that he had never been able to before. Jacob's writing skills quickly caught the attention of others, and he soon found himself working as a journalist for The Sun out of Hummelstown. From there, he went on to contribute to a variety of publications, including the American Bee Journal and Referee Magazine. Jacob's writing style is reflective of traditional journalism, but he also infuses his work with a unique voice that sets him apart from others in his field. Despite his success as a writer, Jacob also owns another business, JJ Auto & Home, which specializes in cleaning. Jacob's commitment to excellence is evident in all of his endeavors, whether it be in his writing or in his business ventures. Today, Jacob is the author of two books and continues to inspire others through his writing. His journey to becoming a writer serves as a reminder that sometimes our darkest moments can lead us to our greatest achievements.

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