How Amazon Go draws high interest from US shoppers


How Amazon Go draws high interest from US shoppers

According to the survey of Piplsay, 59% percent of people see Amazon Go as a threat to local retailers. Although amazon go stores are not retailers’ competitor, it has caught eyes of Americans and can become a severe rival for local retailers.

A poll conducted by Piplsay showed that more than 60% of people want to see Amazon go stores in their area and a threat to giant food retailers, such as Walmart, and over half of people thought that cashier-less format would be successful. Currently, Amazon has 26 compact Amazon Go stores, ranging in size from 1,200 to 2,700 sqft.

With “just walk out” technology, the Go stores use overhead cameras, weight sensors, and deep learning technology to detect the products that shoppers take and return to the shelves, monitor the cart, and keep track of items. Customers can enter the store with Amazon Go mobile app. When they exit the store, the amazon app automatically debits the amount and sends them a receipt.

On Piplsay’s poll, 28 percent said they’ve gone to an Amazon Go, and 20 percent stated that they never heard of the store. Meanwhile, 54 percent of consumers who visited Amazon Go described their experience as outstanding, and 35 percent thought it was decent. On the other hand, 57% of people said they would be thrilled to have this kind of automated store open in their area. Also, 13% of people said they prefer online shopping and the other half said they prefer local retailers.

An industry expert says that Amazon Go can become a major business if Amazon expands its physical stores. Piplsay found that 26% of people believe that Amazon Go doesn’t stand as a threat for big retailers, as Walmart and other chains are too big for Amazon Go.

Expectations of Amazon Go’s success as an offline retailer are about the same across the generations. About 35% of Millennials and GenX thinks Amazon Go-type stores will be a success. Also, 65% of Millennials and 60% of GenX believe Amazon Go will be a threat to big retailers like Walmart and Kroger.

However, Amazon faced inconsistent sales growth in its physical store. As per research, Amazon’s physical store sales weakened 8% year over year to $4.02 billion. With the 26 Amazon Go locations, Amazon’s U.S. physical stores include 502 Whole Foods Markets, eight Amazon Fresh grocery stores, two Amazon Go Grocery stores (which use cashier-less technology), 29 Amazon 4-Star outlets, and more.

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