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Thursday, September 19, 2019

Is Amazon Go Failing and if so Why?

Pace of adoption may note indicate longer term use.   I think it will have the power of novelty if run well enough in the right context.    Will continue to follow.

Is Amazon Go heading for a hard stop?
by Matthew Stern  In Retailwire, with additional expert comment.

From the public relations push that followed the 2018 launch of Amazon Go, one might have surmised that it was only a matter of time until Just Walk Out technology supplanted all other forms of checkout in brick-and-mortar retail. This impression was bolstered by a report later that year that Amazon.com wanted to have some 3,000 Go stores in operation by 2021. A recent report indicates, however, that Amazon Go’s footprint is not expanding at anywhere near the pace once anticipated.

Amazon had planned to open 56 Go locations by the end of 2019 and 156 by the end of 2020, according to a story originally broken by The Information and discussed on The Verge. Amazon has in fact opened only 15 Go stores, all located in major metropolitan areas.

The apparent slowdown in expansion could be the result of numerous factors such as, among other possibilities, the cost of deployment, difficulty scaling the technology to handle more foot traffic and larger locations or concerns about low rates of shopper adoption outside of city centers.  ... "

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