No cashiers for Amazon Go store
Amazon’s (AMZN) 4Q17 earnings report will come after it recently opened its long-anticipated Amazon Go store to the public. The Amazon Go store is a high-tech (technology) convenience retail store (QQQ) that doesn’t require cashiers to be present at checkout terminals. Instead, customers simply walk in after they scan their Amazon Go app (application) on their smartphones and select the items they want to purchase. The app automatically registers the price of the item. Customers are charged automatically for their items as they leave the store. There are no lines, no registers, and no cashiers at the Amazon Go store.
Amazon Go goes public
Amazon tested its Amazon Go store concept with its employees for a little over a year before it opened it to the public. The public opening of Amazon Go was delayed for several months. The store was expected to open in early 2017.
The maiden Amazon Go, a 1,800-square-foot retail outlet, is located in an Amazon building in Seattle, Washington.
Speeding up store checkout
Since the Amazon Go store is designed to speed up checkout, it could open up another frontier of Amazon’s competition with traditional retailers, especially Walmart (WMT), Costco (COST), and Kroger (KR). Amazon Go, with its promise to eliminate long lines at store checkout terminals, could help Amazon draw more grocery shoppers at the expense of legacy grocers. One Click Retail estimates that Amazon’s grocery sales in the United States (SPY) rose 59% in 2017, while its UK grocery sales rose 56%.
We’ll be waiting to hear what Amazon executives have to say about the next step for Amazon Go when the company discusses its 4Q17 results.