A new report by RBC Capital Markets sees exponential growth and a 50% reduction cost based on technology as the key success aspects.
The cashierless Amazon Go business could be worth $4 billion by 2021, according to a report from RBC Capital Markets.
Amazon already has 9 brick-and-mortar, cashierless convenience stores across Seattle, Chicago and San Francisco with plans in place to open almost 3,000 over the next years. Due to the high-tech required for the operation of these stores, opening them comes at a high price – an estimated $1 million in hardware per site.
A new report by RBC Capital Markets expects the combination of sales and potential long-term saving from the stores’ technology will make Amazon Go into a $4 billion business over the next three years.
The new research also found that the cashier-free stores bring in 50% more revenue than typical convenience stores.
“Amazon Go stores could be a game changer for physical retail experience. Its in-store technology enables shoppers to have a very efficient and pleasant shopping experience. While not a significant financial contributor yet, we believe the overall opportunity is huge,” RBC analyst Mark Mahaney wrote in the research note as cited by Supermarket News.
The latest opening was a 450-square-foot, employee-only outlet at the Macy’s building in Seattle, where Amazon has an office.
Amazon Go is a modern concept with virtual shopping carts and no cashiers offering a speedy transaction. The existing locations primarily sell grab-and-go food items such as prepared sandwiches, salads, yogurt and granola bars.