Amazon Said to Consider Opening Up to 3,000 Cashierless Stores by 2021

Bloomberg

The cashierless shops allow customers to load up on snacks and walk out without the hassle of standing in line as the store sends a bill later.While Seattle and Chicago are already living the dream, Amazon is now considering a plan to open upwards of 3,000 cashierless stores over the course of the next few years, according to AdAge. Since then, the company has opened two more Seattle sites and one in Chicago, and has confirmed plans for San Francisco and NY stores.

Amazon opened its first Amazon Go store in its hometown of Seattle in 2016.

"Amazon needs to figure out how to grow this", said Soper, "but limit the cost because the cost of this technology is extremely expensive right now and so by narrowing the focus on simply prepared food, they can keep the cost down and expand more quickly". No queues, no waiting, it says.

Correction: Sept. 19, 4:32 p.m. PT: Fixes the number of Amazon Go stores in operation and when they first opened. However, with less staff and strictly dedicated to foodstuffs, which have a higher profitability than other retail goods, Amazon hopes to recoup the investment faster than your bog-standard food store.

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Going from just four locations to 3,000 in a few years would constitute a massive jump and make Amazon a leading convenience store operator, rivaling 7-Eleven, Walgreens and CVS. With 3,000 stores to its name, Amazon would stand to take a sizable bite of that pie.

The new chain would be a massive expansion of Amazon's retail efforts, which also include Whole Foods as well as bookstores and in-mall kiosks.

Maybe "popping down to the Go for a quick bite" won't sound so odd by 2021. The original Amazon Go in downtown Seattle required more than $1 million (roughly Rs. 7.2 crores) in hardware alone, according to a person familiar with the matter. But it has pushed back on past reports that executives had given the green light to a major expansion of Go. Under the plan cited by Bloomberg, 10 Go stores would be up and running by the end of 2018, 50 in 2019, and up to 3,000 by 2021. Additionally, opening multiple stores in the same metro area could help minimize costs since they could in theory share a centralized food production facility. A fourth AmazonGo opened Monday in Chicago and there are plans to open a fifth in New York City.

What's more, Amazon has grown its advertising business 242 percent since 2017, eMarketer said. "It's too far away".

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