By 2021 Amazon plans to open 3,000 new AmazonGo cashier-less convenience stores. CEO Jeff Bezos said they are experimenting the best layout for a convenience store that sells freshly prepared foods, the aim was to eliminate meal-time logjams in extremely busy cities.
Seattle was the first store to go cashier-less in 2016 and since then the company has opened up three additional sites. Amazon is experimenting with the concept of meal-on-the go option by offering salads, sandwiches and snacks at two of its stores. The other two stores had more products just like any convenience store. With the success of these newly opened stores, Amazon plans to open 10 more stores by this year, 50 locations in major cities by next year and have more locations in 2020 and 2021.
Amazon released the video of the concept store and left its customers in awe, The store combines the best use of existing technology and catered to the demands of the current and future consumers.
The cost of opening the Seattle store was quite high as the hardware alone costed $1 million but the focus was to reduce upfront costs such as security camera or sensors. The initial investments in this store was high but Pre-prepared foods such as salads, sandwiches, drinks, and other meals have wider profit margins in comparison to traditional grocery stores and thus can make AmazonGo a profitable venture in shorter amount of time.
The news of the concept store reflected quite well in the market, shares of Walmart and Target were seen to be reduced by 0.6% and 1.5% respectively shortly after Amazon released the video.