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Amazon Go Planning East Coast Store

By Raymond Pucci
September 10, 2018
in Analysts Coverage, Merchant
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Mobile self-checkout has evolved from an ambitious retail experiment into a viable model for frictionless shopping. After years of development and testing, Amazon Go demonstrated that consumers are willing to embrace cashierless stores that eliminate checkout lines through a combination of mobile technology, computer vision, and in-store sensors. As Amazon expands the concept beyond Seattle into major metropolitan markets, it is signaling growing confidence that mobile self-checkout can scale across a variety of retail environments.

The continued rollout of Amazon Go reflects a broader shift toward proximity mobile payments and automated retail experiences. As consumers increasingly prioritize convenience and speed, retailers are exploring new ways to remove friction from the purchasing journey while improving operational efficiency.

With almost a year’s experience of being open to the public, Amazon Go is said to be ready for the city that never sleeps. As the following GeekWire story reports, the Seattle merchant is looking to New York for another mobile self-checkout store.

“Amazon Go is headed to the Big Apple. An Amazon spokesperson said the company plans to open a store in New York City, but did not give details about location or timing. The announcement comes just hours after Amazon listed several jobs, first spotted by The Information, for store manager, assistant store manager and training lead associate, all based in New York.

Amazon spent years developing the checkout-less technology behind the store, and another year testing it with Amazon employees before the original store opened in January in the base of Amazon’s Day One officer tower. But since then, Amazon has embarked on an expansion of the concept.

New York represents the third market outside of Seattle where Amazon plans to open Amazon Go stores. In May, the company confirmed plans to open stores in San Francisco and Chicago. 

The store relies heavily on the Amazon Go smartphone app. Customers scan a unique QR code within the app before passing through a set of glass doors, similar to the gates Amazon employees go through when entering their office buildings every morning. A vast array of overhead cameras and weight sensors in the shelves automatically track what people pick up and take from the store.”

System development and testing of themobile self-checkout concept took years and mega dollars, but now the stores are starting to ramp up fairly quickly beyond the original Seattle location. This represents a significant development in proximity mobile payment systems. C-stores and other smaller footprint merchants represent a sweet spot for this technology. Maybe even smaller sections of Amazon-owned Whole Foods could become an Amazon Go zone. Shoppers want convenience and immediacy and this is simply another indication that mobile self-checkout is here to stay. Right now, it’s limited to merchants with deep pockets that can handle the big IT investment.

Amazon’s expansion of Amazon Go highlights the growing momentum behind mobile self-checkout as retailers continue to modernize the in-store shopping experience. Although the technology currently requires significant investment, continued innovation is likely to reduce costs and make these systems accessible to a broader range of merchants. As mobile devices, AI, and sensor technologies continue to mature, mobile self-checkout is well positioned to become a mainstream retail payment experience, delivering faster, more convenient shopping for consumers while helping retailers improve efficiency and reduce checkout friction.

Overview by Raymond Pucci, Director, Merchant Merchant Services at Mercator Advisory Group

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