Andon Labs opened Andon Market on San Francisco’s Union Street, touting it as the world’s first boutique run by an artificial‑intelligence agent named Luna. The storefront lacks signage, and the shelves are stocked with an eclectic mix of candles, board games and mushroom‑themed books. Luna, powered by Anthropic’s Claude Sonnet 4.6, handles hiring, scheduling and pricing, while human staff still stock shelves and guard against theft.

Founders Lukas Petersson and Axel Backlund funded a three‑year lease at $7,500 per month and deposited $100,000 for Luna’s operating account, then handed the AI a debit card to purchase inventory. The system mistakenly listed 1,000 toilet‑seat covers as merchandise and botched employee schedules, forcing the shop to close for three days. Employees earn $24‑$22 hourly with no benefits.

Since opening on April 10, the boutique has sunk $13,000 and customers must call an iPad‑linked phone to learn prices, a gimmick meant to force interaction with Luna. Visitors from abroad praised the novelty, but the experiment highlights how AI can automate back‑office tasks while still relying on humans for physical retail work. The loss underscores the gap between digital ambition and profit.