Yahoo Finance Amazon could open up to 3,000 cashier-less stores by 2021
Amazon is considering opening up to 3,000 new AmazonGo cashierless stores by 2021 as it steps up its assault on the high street.
The online retailer will open 10 locations by the end of this year and about 50 locations in major cities in 2019, according to sources speaking to Bloomberg.
The company unveiled its first cashierless store in 2016 near its headquarters in Seattle. It has since opened two more sites in Seattle and Chicago.
“In our view, it makes sense for Amazon to scale its retail infrastructure more quickly, as it should improve the economics of local delivery, food production, and product availability,” said Baird analyst Colin Sebastian.
“By themselves, 3,000 stores could represent $3-$6bn of incremental revenues. Using Casey's General Stores as a comparison, we estimate that 3,000 Go stores could translate into at least $3-$6 billion and $1-$2.5 billion of annual revenue and gross profit contribution, respectively.”
The automated supermarkets promise "no lines, no checkouts, no registers."
They allow shoppers to scan their smartphone with the Amazon Go app at a turnstile, pick out the items they would like and then leave the store without having to interact with a human.
By combining computer vision, AI sensors, the online retail giant automatically knows what people have purchased and charges their Amazon account. If someone puts an item back, they aren't charged.
Jeff Bezos last week said Amazon was "very interested" in physical stores. He added that they would have to offer something new to be profitable. "If we offer a me-too product, it’s not going to work," he said.
Amazon move into the grocery market has been slower than had been expected. However, its 2016 acquisition of Whole Food and recent expansion plans suggest it is now gathering pace.
The online retailer started moving into the UK grocery sector two years ago after launching Amazon Fresh, its online delivery service.
John Lewis Partnership recently rejected reports that it was approached by Amazon last year to take over Waitrose.
