Amazon May Open 3,000 Stores in Next Three Years

Bloomberg

Bloomberg

Bloomberg points out that the initial stores have carried a high setup cost, requiring $1 million in hardware alone, making the prospect of opening 3,000 stores a multi-billion dollar investment.

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.

Amazon has already built four stores with the high-tech concept, with their first store opening in Seattle in 2016. Since then, the company has opened two more Seattle sites and one in Chicago, and has confirmed plans for San Francisco and NY stores.

If Amazon manages to open 1,000 new Amazon Go stores by 2021 I'd be impressed.

Amazon Go sells an array of prepared food alongside grab-and-go convenience-store grocery staples. "Given Amazon's need to invest in in-store automation technologies, cameras and sensors, we would not be surprised to see the cost toward the higher end of this range", they added. Amazon has poured considerable resources into its grocery business in the past 15 months and bought the upmarket organic grocer Whole Foods for $13.7 billion last summer.

The e-tail giant now has four Amazon Go stores: three in Seattle and one in Chicago, which opened on Monday.

Speculation of a widespread rollout of Amazon Go isn't the first time the company has been rumored to have plotted a massive expansion into brick-and-mortar stores.

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

Shoppers scan the Amazon Go app on the mobile devices as they enter the Amazon Go store in Seattle, Washington.

Amazon's flair for innovation and consumer acumen raise the potential for a major expansion of the Amazon Go format, according to Loop Capital analyst Andrew Wolf. The stores could also help Amazon become a bigger player in the pharmacy business because it agreed to buy PillPack, an online drugstore, in June. Amazon also routinely loses money expanding internationally. "We shall see", Wolf said at the roundtable event. Its key feature is a complete lack of lines to wait in. Meanwhile, the 2,000-square-foot Chicago store marks the first Amazon Go outside Amazon's hometown of Seattle. If it's a quarter mile from where people are walking and biking, the novelty of the technology won't matter.

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