A report says that Amazon plans to open as many as 3,000 physical stores by 2021 - but without any cashiers.
Right now, there are three Amazon Go stores in Seattle (7th & Blanchard, 5th & Marion, and 300 Boren Ave N) and one in Chicago. Since then two more stores have been opened in the city, and another in Chicago. 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. Once inside, an array of cameras and sensors track shoppers' progress through the store, charging a credit card on file for items the shoppers take off shelves.
Customers have to scan a smartphone app to enter the store. 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.
Industry analysts note that Amazon is increasingly embracing an omnichannel strategy for its retail business and, on the food side of the equation, would likely seek more physical stores to compete with the brick-and-mortar presence of leading grocery retailers like Walmart, Kroger, Albertsons Cos., Target and Costco.
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The original AmazonGo in downtown Seattle required more than $1 million in hardware alone, a person familiar with the matter has said.
The first Amazon Go store in Seattle. The first is on Amazon's campus in Seattle. Amazon has committed to opening stores in NY and San Francisco. It would also give Amazon a much expanded footprint of physical stores in the United States, adding to its more than 350 Whole Foods stores.
"Amazon is fully aware that they have to be much bigger in consumables and that omnichannel is what's going to work in consumables". Prepared foods also have wider profit margins than groceries, which would help decrease the time it takes for the stores to become profitable.
If a shopper puts an item back on the shelf, Amazon removes it from his or her virtual cart. Shoppers use the Amazon Go mobile app to gain entry to the store through a turnstile. "It's too far away".