Amazon Go Brick and Mortar Store

By Aaron Varghese,
Money and Investing Writer

Amazon Inc.’s (NASDAQ:AMZN) recent announcement for a new grocery store, Amazon Go, has created quite the buzz in recent news. This first physical grocery store by Amazon has created many mixed reviews amongst various individuals. Some compare this new addition for Amazon to a startup, a term that usually does not apply to a multi-billion dollar company. However, with this startup-like approach, many innovative and new aspects of technology management will be implemented in to the brick-and-mortar stores. But what specifically will make Amazon Go so unique?

For starters, Amazon plans to eliminate the entire traditional system of paying at the cashier to just grabbing and leaving. The technology in Amazon Go stores will allow customers to walk in the store, grab items that they want to purchase, and leave with the item. The items purchased will get added to your Amazon Account. The problems associated with long lines and forgetting your credit cards will be resolved with the opening of these innovative stores. While most information regarding the technology has been kept under wraps by Amazon, the use of an app to enter the upcoming stores and record the purchases has been disclosed thus far. With the current state of modern technology, these technologically advanced brick-and-mortar stores seem to have become a reality thanks to Amazon.

Another major unique facet that Amazon Go will be able to accomplish is link the product to the customer. Amazon uses data analytics to link the customer to the products they purchase online. However, this new and comprehensive technology will be able to accomplish the same task in the real-world. The use of this data could immediately tell Amazon which products to hold more of, how to create the layout of their store and as a result, become more efficient overall.

By 2017, Amazon plans to release Amazon Go stores throughout the country. Amazon does have one store open as of right now in Seattle. This store is not open to civilians however and does not carry a lot of inventory.

The recent announcement of the Amazon Go stores appear to have already made an impact in Amazon’s stocks. On December 2nd, stock prices were as low as 737.7, but now stocks have reached up to 768.66 as of December 9th. This significant increase of 30.96 points can certainly be attributed to some length to the news of the upcoming Amazon Go stores. It will only be a matter of time before we witness another surge in Amazon’s stocks if this new “startup” proves to be the innovative success it appears to become.

Amazon’s announcement has been a source of much news in recent days and this buzz will only continue as the days to Amazon Go’s release to the public shorten. While many people may not be entirely certain how successful these new stores may be, others assert that Amazon’s actions are the future of retail. Other retail companies will certainly follow suit if Amazon Go proves to be a success, meaning that very soon there may be a major revolution in the way we as consumers shop for products.

A version of this article appeared in the Tuesday, December 13th print edition.

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