Amazon's store expansion is beyond flawless for introverts

Daniel Fowler
September 20, 2018

There are plans to open six more by the end of the year, and up to 50 stores in 2019. An Amazon spokeswoman declined to comment.

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

AmazonGo stores do not have cashiers. The first is on Amazon's campus in Seattle.

"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". Adding 3,000 convenience stores would make AmazonGo among the biggest such chains in U.S. Additionally, opening multiple stores in the same metro area could help minimize costs since they could in theory share a centralized food production facility.

Amazon Go grew from a single convenience-store site to four over the span of eight months. That never happened and Amazon issued a rare denial of the rumor.

Spencer Soper of Bloomberg first reported the news that will likely disrupt the industry of quick food stores like 7-Eleven, Subway, and Panera Bread.

It opened to the public in January 2018.

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It said shoppers use a smartphone app to enter the store and once they scan their phones at a turnstile, can choose from a range of salads, sandwiches, drinks and snacks.

Sleek black cameras monitoring from above and weight sensors in the shelves help Amazon determine exactly what people take. Once we walked out, we received an email that we were charged for our items. But it has pushed back on past reports that executives had given the green light to a major expansion of Go.

Much of the store will feel familiar to shoppers, aside from the check-out process. Amazon also routinely loses money expanding internationally.

Research firm eMarketer predicts that Amazon will control more than 4 percent of the United States digital advertising market by the end of this year.

That's a far cry from Google and Facebook, which have long maintained a digital ad duopoly, though Amazon is still expected to come in third.

Amazon Go is the most distinctive of all of its physical stores.

What's more, Amazon has grown its advertising business 242 percent since 2017, eMarketer said.

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