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Amazon Go: New Contenders of On-the-go Meals? What Brick-and-mortar Stores Must Know

Amazon Go is a new type of store that has been appearing across the globe. To enter one, users download the app and scan it at the store entrance. Users then shop without the hassle of a checkout process. Shoppers simply take the items they want and leave the store. Amazon then sends a receipt and charges the shopper’s account. 

The Amazon Go app enables this by using its Just Walk Out technology. This technology is built on deep learning algorithms and computer vision. This is in addition to sensor fusion. 

This is game-changing for busy shoppers who make purchases at brick-and-mortar stores, as Amazon Go streamlines the process by allowing users to shop more quickly and conveniently.


Amazon Go and digital buyers projections

As new technology continues to penetrate the daily lives of consumers, Amazon is aiming to leverage it. According to a Bloomberg report, Amazon plans on opening up to 3,000 of these stores by 2021. The increasing popularity of digital shopping also indicates that there is a market for Amazon Go stores. According to an eMarketer forecast, the number of U.S. digital buyers will hit approximately 206.3 million by 2021. 

The aggressive expansion of 3,000 stores, coupled with the increasing number of digital shoppers, may threaten traditional convenience stores and franchises. Fast food retailers like Subway and 7-Eleven may have to compete against Amazon Go. This is because Amazon Go also offers prepared meals.

What this may mean for the future of shopping is more personalized delivery options in addition to automatic replenishment. The collection of consumer purchase data can aid in predicting product needs. Amazon’s true long-term strategy with Amazon Go remains to be seen. 


statistics of grocery store innovations

As for other retailers that offer on-the-go meals, consumers expect an increase of direct-to-consumer (D2C) services. This type of service is an alternative to cooking at home. It also saves consumers time when it comes to finding new recipes. In a report, Phononic noted that 62% of internet users expect there to be stores dedicated to prepared on-the-go meals as part of grocery store innovation.  

The research also found that 86% of internet users expect grocery stores to let them scan and pay for items. Therefore, users expect more self-checkout technology in supermarkets. The expectation of automatic replenishment services is 76%. 

As Amazon Go becomes a contender for traditional brick-and-mortar stores, the latter parties must take note of customer expectations and digital technology trends. New and performance-driven marketing strategies must be implemented in order to remain relevant within the increasingly competitive shopping landscape.


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