Amazon could open over 2,000 grocery stores in massive retail push
In a plan that could up-end both conventional grocery chains and app-based services like Instacart, Amazon is hoping to open more than 2,000 self-branded grocery stores, according to a report.
Prospects are dependent on the success of test locations, sources informed The Wall Street Journal. On Tuesday Amazon revealed "Amazon Go," its first-ever grocery store, which is currently open only to Amazon workers but will reach the public in early 2017. Shoppers have to check in with a special app, but can then simply pick up whatever they want and leave, with the bill appearing on their Amazon account. Various sensor and AI technologies are used to determine what a customer is taking off of shelves.
Still in the works, the sources said, are two other store formats. Whereas Go is closer to the size of a convenience store, in November Amazon's technology team reportedly approved a proposal to open much larger, multifunction stores with curbside pickup options. With the greenlight, planning and hiring can get underway.
Two drive-through prototype stores, without any in-person browsing, are meanwhile expected to open in Seattle within the next few weeks.
Amazon is already a dominant force in selling products like books and electronics, but it has made little headway into groceries, which are delivered via AmazonFresh or Prime Now. The extra cost and wait times can make those options impractical even where they're available, but physical outlets might solve both problems.
Prospects are dependent on the success of test locations, sources informed The Wall Street Journal. On Tuesday Amazon revealed "Amazon Go," its first-ever grocery store, which is currently open only to Amazon workers but will reach the public in early 2017. Shoppers have to check in with a special app, but can then simply pick up whatever they want and leave, with the bill appearing on their Amazon account. Various sensor and AI technologies are used to determine what a customer is taking off of shelves.
Still in the works, the sources said, are two other store formats. Whereas Go is closer to the size of a convenience store, in November Amazon's technology team reportedly approved a proposal to open much larger, multifunction stores with curbside pickup options. With the greenlight, planning and hiring can get underway.
Two drive-through prototype stores, without any in-person browsing, are meanwhile expected to open in Seattle within the next few weeks.
Amazon is already a dominant force in selling products like books and electronics, but it has made little headway into groceries, which are delivered via AmazonFresh or Prime Now. The extra cost and wait times can make those options impractical even where they're available, but physical outlets might solve both problems.
Comments
Imagine an Amazon competitor to IKEA or them breaking into a completely automated fast food drive thru concept.
Every retail business better get their act together if they want to survive this. And those morons pushing for a $15/hr minimum wage? This is the future. No or massively reduced minimum wage service sector employees.
so I guess there should be at least one (1) employee until robots can do that too...
i dont know how Amazon's system works, but it's likely RFID and the final wringing up is likely when you walk out the store, not when you pick up the chips.
However, there is a large middle class population of customers where there is a stay-at-home Mom or Dad with several small children. For many of these, a trip to the supermarket is a social activity. With their kids in tow, they can meet friends and carry on enjoyable conversations with other adult friends while preforming a necessary family chore in a clean, safe environment.
Supermarket chains have long understood the social needs of these customers and layout their stores accordingly.
IMO, this approach shows a lot of potential for certain types of stores and shopping activity.
From what I can tell, this tech once refined should not be too expensive to implement for many stores... In fact, Amazon could license, install and maintain the tech as a service.
Another potential advantage is digital, electronic itemized receipts for budget/accounting use by the consumer.
One missing thing is secure payment such as ApplePay.
But with Amazon I don't even need to scan?
Impressive.
And when there is no one left, they're free to jack their prices as high as they want.
It is simple to mitigate errors and bad charges after the fact with most vendors. You just pay with your credit card -- with a credit card you have recourse to reverse these charges if the vendor refuses. If the consumer is reasonable (does not try to overuse this capability) most of these situations can be resolved.