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Why Airports Could Be an Ideal Location for AmazonGo Stores

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Amazon eyeing airport locations for AmazonGo stores

According to Reuters, Amazon (AMZN) is targeting airports to expand its AmazonGo store format. At AmazonGo stores, high-tech retail outlets that operate without human cashiers, customers can simply scan their smartphone app as they check in, pick what they want from the shelves, and walk out when done shopping. Amazon charges customers on their linked payment card as they leave the store.

Amazon has opened eight AmazonGo store formats since January, with stores in San Francisco and Chicago. The eighth store opened at one of Amazon’s Seattle offices.

$49 billion airport retail market

Opening AmazonGo stores in airports could open new opportunities for Amazon. According to GlobalData, the global airport retail market was worth $38 billion in 2016, and is on track to grow to $49 billion by 2021. Airport retail spending is on the rise as developing countries’ middle class has swelled, resulting in more air travelers.

Retail is Amazon’s largest business

In the third quarter, Amazon’s revenue rose 29% YoY (year-over-year) to $56.6 billion, of which retail accounted for 88%. Meanwhile, Shopify’s (SHOP), Alibaba’s (BABA), Etsy’s (ETSY), and eBay’s (EBAY) revenue grew 58%, 54%, 41%, and 6.0% YoY, respectively, and Groupon’s (GRPN) fell 6.6% YoY. 

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