Published: Thu, September 20, 2018
Money | By Armando Alvarado

Amazon considering opening up to 3,000 cashierless stores by 2021: Bbg

Amazon considering opening up to 3,000 cashierless stores by 2021: Bbg

By rolling out 3,000 Amazon Go stores, Amazon would quickly become one of the biggest chains in the US, Bloomberg said.

Amazon Go threatens traditional convenience store companies like 7-Eleven, as well as chain fast food sandwich and lunch chains like Subway.

Right now, there are three Amazon Go stores in Seattle (7th & Blanchard, 5th & Marion, and 300 Boren Ave N) and one in Chicago.

It would mark the latest example of Amazon's rapidly growing e-commerce, cloud computing and, now, advertising empires - as the firm's online advertising business gets closer to overshadowing the likes of Google and Facebook.

Customers have to scan a smartphone app to enter the store.

Shares of USA supermarket chains Kroger Co (KR.N) and Target Corp (TGT.N) fell between 1 and 2 percent following the news.

The future of TV arrives as Sky bundles Netflix into Sky Q
The app is identical to the what you get on any other platform, but it's the integration that's the interesting part. Netflix content like Stranger Things is integrated into the Sky Q system at a deep level.

Amazon Go is the most distinctive of all of its physical stores.

Bloomberg reported Wednesday that Amazon is considering different models as it looks to expand Go, including weighing whether to include a limited selection of groceries, or simply focus on prepared food pickup.

What's more, Amazon has grown its advertising business 242 percent since 2017, eMarketer said.

The ecommerce giant revealed plans (and a trial store) for its futuristic stores back in 2016, and opened the first Amazon Go location to the public in Seattle this January. "If we offer a me-too product, it's not going to work", he said.

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. 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. Focusing on prepared foods rather than groceries could help boost profit margins, and some of the existing stores are already doing that.

If Amazon manages to open 1,000 new Amazon Go stores by 2021 I'd be impressed. Some of the most recent Amazon Go locations feature only the prepared-food section without a grocery selection.

Like this: