Amazon is on the move as they plan to open Amazon Go convenience stores with up to 3,000 cashier-less by 2021. If Amazon was to move forward with this, it would be their largest move into the brick and mortar market since they acquired Whole Food back in 2016. This would also change their success with offline retail stores as would now have to compete with established store brands such as Kroger, 7-Eleven, and CVS and larger stores such as Target and Walmart.
Amazon launched their first Go store that used lightweight and sensor automation that allows their customer quickly shop and purchase without going to a kiosk are an actually employee. Amazon has since then analyzed this model and wanted to move more carefully using this model. Since then, Amazon has opened a second and third store which are both located in Seattle and another is opening soon in Chicago. Amazon plans on taking this model to other locations by opening more stores in Chicago and San Francisco.
Amazon introduced this Go model to decrease wait by removing kiosks and cashiers from their stores. Customers use their smartphones that have been previously signed into Amazon before walking in. They then just walk in and shop for whatever they would like to purchase. Next, software and sensors analyze what has been taken from the shelves and add those items to their digital shopping cart. The customer can then leave the store all while the scanners automatically checkout.
Large retailers such as Target and Walmart have seen their stock drop after the news from Amazon as this could soon mean that in a couple of years, Amazon will look to shift their strategy away from the traditional household good, restaurant, and grocery market. As of now, they are already trying to push their same day delivery of their grocery and household good products. We look to see how this progresses as if Go becomes successful, it will threaten the existence of stores such as 7-Eleven and CVS.