Amazon’s cashierless stores could be a US$4.5b business by 2021
The Hustle reported that not only are Amazon’s new cashierless and cashless stores giving traditional “convenience” stores a run for their money in the US, but new research also suggests they’re already more lucrative. Based on in-person tests and data-collection, analysts at RBC Capital found that each Amazon Go store will reel in an estimated US$1.5m in yearly revenue, 50% more than your typical corner shop. With 8 Go locations on the map presently, Amazon is considering a plan to open as many as 3,000 new Go stores over the next 2 years, which, based on RBC’s report, would mean that the storefronts could become a $4.5B business by 2021. While it may be more profitable long-term, the upfront investment for cashierless stores is much larger than “dark age” convenience outlets. The first Go location cost more than US$1m in hardware alone.