Amazon (NASDAQ:AMZN)—the king of e-retail—is taking its physical stores to the next level. According to Bloomberg, the company is planning to open 3000 Amazon stores by 2021.
3000 Amazon Stores by 2021
From its earliest days as an online bookseller, Jeff Bezos’ company has grown to include fashion, healthcare, food, and cosmetics.
It is even planning moon deliveries by 2023.
Amazon has built an empire from being innovative. Sourcing products at good prices, it delivers whatever you could possibly need with its service that is second to none.
So it stands to reason that the retailer is planning on doing something a little different with its 3000 Amazon stores. They will be cashier-less and follow the current format of its AmazonGo shop, the flagship food store opened in Seattle in 2016.
Reinventing the Wheel
In this AmazonGo store, shoppers enter using a smartphone app. Once they scan their phones at a turnstile, they can grab what they want from the shelves and walk out without queueing at a register or physically paying.
Sensors and computer-vision technology detect what shoppers take, and a bill is sent to them automatically. This method eliminates checkout lines and creates a much more efficient shopping experience.
Especially if you don’t have patience.
Convenient but Will it Work?
It seems Amazon is choosing convenience over substance as a business model. Whilst the format is still in discussion, these 3000 Amazon stores will liken to standard convenience stores. They will sell fresh foods as well as a limited grocery selection and grab and go quick bites for those of us on the move.
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And Bezos reiterated the need to bring something new to the table; whilst saying that Amazon was “very interested” in physical stores, he stressed, “If we offer a me-too product, it’s not going to work.”
Most of our spending still occurs in the real world and not online, and Amazon sees eliminating shopping queues as a key feature of reinventing out standard brick and mortar shopping experience.
The reality is, where Amazon goes, others shake in their boots. The mention of 3000 Amazon stores sent shares of retail rivals lower. Walmart Inc. (NYSE:WMT) declined 0.6%, Target Corp. (NYSE:TGT) dropped nearly 1.5%, and Kroger Co. (NYSE:KR) lost 3.1%.
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