Amazon considers opening up to 3,000 cashier-less stores by 2021
Bloomberg reported that Amazon plans to open as many as 3,000 of its cashier-less Amazon Go convenience stores by 2021. It would be Amazon’s most aggressive move in the brick-and-mortar space since its purchase of Whole Foods in 2016. It would also significantly alter the company’s market positioning, to compete with grocery stores brands like Kroger, convenience and liquor stores like CVS and 7-Eleven, and big-box retailers like Walmart and Target. Stocks for big-box retailers like Walmart and Target began sliding following the news. We see it in a slightly different way - the more physical locations Amazon opens, the more it becomes a traditional retailer. This will subject Amazon to all the same pressures faced by its competition, and, dare we say, it will lead to a more sober market capitialisation.