Amazon considers opening 3,000 cashierless Go stores

21 September, 2018, 02:47 | Author: Elaine Woods
  • Amazon may open 3,000 cashierless stores by 2021 - as survey reveals it's now third in online ads

According to a report, Amazon is considering opening 3,000 of its cashierless stores by 2021.

Amazon is set to get into the convenience store business by setting up as many as 3,000 cashierless Amazon Go stores by 2021, reports Bloomberg.

Amazon opened its first Amazon Go store in its hometown of Seattle in 2016. It's added two more stores in the city, as well as one in Chicago just this month. Though not giving a timetable or location details, Amazon also has confirmed plans to open Amazon Go outlets in San Francisco and New York City. Two of the new stores offer only a limited selection of salads, sandwiches and snacks, showing that Amazon is experimenting with the concept simply as a meal-on-the-run option.

The source reveals Amazon is looking to target areas with young, busy residents who are willing to shell out a bit more cash for higher quality food delivered at the pace of a typical fast food restaurant. Under the plan cited by Bloomberg, 10 Go stores would be up and running by the end of 2018, 50 in 2019, and up to 3,000 by 2021.

The e-tail giant now has four Amazon Go stores: three in Seattle and one in Chicago, which opened on Monday.

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The person familiar with Go's development during its early stages said the sensor technology and other hardware installed in the first store in Seattle cost between $2 million and $3 million, and that the company was hoping to reduce costs for future stores.

The new chain would be a massive expansion of Amazon's retail efforts, which also include Whole Foods as well as bookstores and in-mall kiosks. The stores could also help Amazon become a bigger player in the pharmacy business because it agreed to buy PillPack, an online drugstore, in June. "We shall see", Wolf said at the roundtable event.

You have to scan the Amazon Go app on your phone to enter the store.

If a shopper puts an item back on the shelf, Amazon removes it from his or her virtual cart. Its key feature is a complete lack of lines to wait in.

"Go's technology and offering furthers Amazon's efforts to build deeper, more integrated relationships with consumers, with the goals being to increase data capture and understanding of consumer demand and intent and ultimately drive higher/more frequent purchase behavior", they wrote. "It's too far away".

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