AmazonGo looks set for London opening
Amazon (AMZN) has secured retail space in central London, where it plans to open its AmazonGo stores, according to The Grocer. At AmazonGo stores, customers can simply walk in and pick what they want from the shelves and walk out without going through a checkout terminal. Customers scan their smartphone as they enter the store, where cameras monitor what they select from the shelves. Amazon charges customers on their linked payment card for the purchases.
Tight competition in the British food retail market
The first AmazonGo store opened in the United States in January 2018. Amazon has since opened ten AmazonGo stores in the United States but has yet to introduce the concept overseas. According to The Grocer’s report, Britain could host AmazonGo’s first international store.
Introducing AmazonGo stores in Britain would intensify competition between Amazon and British retailers Tesco (TSCDY) and Sainsbury’s (JSAIY). The latter, one of Britain’s top grocery retailers, is seeking to acquire Walmart-owned (WMT) Asda in a multibillion-dollar deal to strengthen its position. Tesco operates a digital shop on eBay (EBAY).
AmazonGo airport locations
Last year, Amazon was reportedly targeting airport locations for its AmazonGo stores to better serve busy travelers. Planting AmazonGo stores in airports could open up an attractive new revenue opportunity for Amazon. The global airport retail market was valued at $38 billion in 2016 and is poised to grow to $49 billion by 2021, according to GlobalData predictions.