Amazon.com Inc. (NASDAQ:AMZN) is moving more aggressively into cashier-less grocery stores.
The world’s biggest online retailer is opening 'Amazon Go Grocery,' a store in Seattle that is four times larger than the shopping space it first opened in January 2018. The concept targets customers in residential neighborhoods.
The new format reflects Amazon’s ambitions to capture more of shoppers weekly spend through groceries, increasing competition with national players Kroger, Albertsons and others. The company, once famous for selling books online, was long rumored to be working on a new chain of physical grocery stores that would cater to a more diverse set of tastes than up-market Whole Foods, which it acquired in 2017.
As with Amazon’s convenience stores, customers scan an ‘Amazon Go’ smartphone app on a gated turnstile to enter and start shopping.
Hundreds of ceiling cameras and shelf weight censors ascertain what customers add to their carts, and their on-file credit cards are billed once they leave the store - no cashiers or checkout lines are required.
If a shopper puts an item back on the shelf after looking at it, Amazon removes the product from his or her virtual basket. That was a major technical challenge to address in the new format, which includes produce priced per item from Whole Foods’ suppliers, as well as baked goods, fresh meat and seafood.
The new format is not the same as a full-fledged supermarket. There will be fresh cold cuts in packages but not a deli or seafood counter, as at other grocers where associates offer expansive selections of items.
How much Amazon was saving on cashier labor, versus spending on cameras that support its technology is unclear. The company said it hired "several dozen associates" for the location, who interact with shoppers and re-stock shelves.
