Downtown Spirits
Amazon made that seamless . There was a dedicated Amazon team that managed the digital , and a dedicated Amazon team that managed the physical .”
Fast forward to summer 2023 , and Downtown Spirits has reopened with Just Walk Out . Now at 1813 7th Ave , the new spot , totaling 3,900-square feet downtown , is a three-minute walk from Amazon ' s headquarters campus .
“ It was easier to do this in Seattle because a lot of the Amazon team is local ,” Warren says . “ And a lot of other Seattle stores in this area are also using this tech .”
Amazon has licensed its cashier-less retail concept , known as Just Walk Out , to Downtown Spirits .
HOW IT WORKS People enter the new store , pick out products and put them in a basket , and exit , all without any friction .
Here ’ s how it works : Using their Downtown Spirits app , Customers scan a QR code at a front gate for entrance . This scan accesses their Amazon wallet app , runs 20-30 fraud and abuse checks , and also verifies that funds are in the connected bank account .
Not everything can be digitized . An employee stationed at the front gate still checks IDs . “ This greeter is liberally carding anyone who appears to be 40 or under ,” Warren says . “ It ’ s really the only friction point .”
If the gate detects red flags , it will not open , and instead directs consumers to see the greeter . “ The greeter is cross-trained to handle these situations ,” Warren says . “ The greeter is also cross-trained in onboarding people onto the app system .”
Once inside , a system of cameras and sensors tracks everything a person picks up and puts into their basket . Items removed from the basket and placed back on the shelf are also detected . As customers exit the store through a gate , their transaction automatically processes . All of this also connects into the Downtown Spirits membership program .
Advantages are many . “ Shrinkage goes down ,” Warren says . “ The customer just goes in and walks around and shops . I can redeploy my sales associates onto the floor helping , rather than standing behind a register . They can act as the experts that we ’ re training them to be .”
In downtown Seattle , populated by highly educated professionals working at world-class companies , maintaining a well-educated staff is important .
“ People here do know what they ’ re talking about ,” Warren says . “ Having employees who can cultivate knowledge is key for us in cultivating customer trust .”
The store does include a small section with a cashier and alcohol staples , about 100 SKUs , for customers who do not want the walk-in / walk-out experience .
Altogether , the new store has a staff of 10 , not including operational support . City Hive remains a critical resource in that regard , as does the Amazon team helping out .
“ It was a huge transition for all of our systems ,” Warren says . “ We have a new ERP-system that ’ s cloud-based . That allows for more information sharing and operability between systems .”
Tech and data have long been tools of the trade for Warren . After running airport concessions since 1994 , his company partnered with Hudson News on a joint venture in 2004 , with 19 stores at Seattle-Tacoma International Airport .
“ Seeing how a company of that stature operating , and bringing that into Downtown Spirits , has been a key aspect in our continued growth , Warren says . This includes how Hudson News utilized statistical tracking to optimize business , and embracing cutting-edge tech in general .
“ We were the first store on Drizly in Washington in 2014 ,” Warren recalls . “ I ’ m always leaning into tech . I ’ m big on reporting ,
www . beveragedynamics . com July 2023 • Beverage Dynamics 9