We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Amazon Convenience Stores Deferred by Technical Glitches
Read MoreHide Full Article
The much-talked-about ‘no cashier convenience store’ called Amazon Go to be launched by e-commerce giant Amazon.com, Inc. (AMZN - Free Report) through its ‘Project Como’ has got delayed.
The store was first announced by the online giant last December and was expected to be opened to the public by the end of this month.
Reason for the Delay
Technical difficulties have been taking a toll on the opening of these comfort-buying stores. The technology used here is based on machine learning, computer vision and artificial intelligence. Clearly, it is still at a primary stage and Amazon may have to face uncertainties related to its execution which could cause further delay in the opening of the store.
The technology cannot keep track of more than 20 people at a time in the store. Hence, it is unable to track an item that has been moved from the shelf.
Amazon has been testing the store at its campus in Seattle, with employees serving as beta testers. Reportedly, the store has been functioning well if there are just a few customers and are moving at a slow pace. As it is not feasible to ask customers to keep a check on their pace, the opening of these stores had to be postponed.
Termed as Amazon Go, this no-queue-checkout-counter grocery store is going to be a boon for customers who are too worn-out to stand in long lines at physical cash counters or are baffled at complicated self-checking counters.
This convenience store will offer all kinds of perishable items and grocery essentials as well as drive-up destinations where subscribers can pick up their orders and have them brought to their cars. All that's needed is the installation of the Amazon Go app on one’s cell phone.
This ‘Just Walk Out’ technology uses machine learning and cameras to automatically detect products picked up. And when shopping is done, one can simply leave the store. After a while, money will be charged online from the Amazon account of the customer.
Will the Delay Bring Respite for Brick-and-Mortar Stores?
Not really. This concept has already started to draw attention. Very subtly the concept addresses modern consumers’ changing pattern of behavior. We are talking about that growing set of customers who are in the vicious cycle of taking up professional challenges to earn more and ending up exhausted with no time for comfort or family.
These new stores will eliminate checkout queues, one of the frustrating parts of shopping in store, saving shoppers a lot of time and effort.
The introduction of Amazon Go will hit hard the company’s direct brick-and-mortar retail peer Wal-Mart Stores, Inc. (WMT - Free Report) . A number of other convenient store stocks like Casey's General Stores, Inc. (CASY - Free Report) or Murphy USA Inc. (MUSA - Free Report) could also be at stake.
Amazon Go will also create pricing pressure on sensitive grocery store chains like The Kroger Co., SUPERVALU Inc. or Ingles Markets, Inc.
Bottom Line
Amazon has already gone brick-and-mortar with books and it seems that it is treading the same path with other merchandise as well. The company is targeting the considerably large customer base that still prefers to shop at physical stores. We note that every industry matures and falls. Amazon seems to be gearing up well in advance should online retail ever bottom out.
Shares of Amazon have been steadily treading higher on a year-to-date basis. The stock has generated returns of 38.84% compared with the Zacks Electronic Commerce industry’s gain of 21.69%.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Amazon Convenience Stores Deferred by Technical Glitches
The much-talked-about ‘no cashier convenience store’ called Amazon Go to be launched by e-commerce giant Amazon.com, Inc. (AMZN - Free Report) through its ‘Project Como’ has got delayed.
The store was first announced by the online giant last December and was expected to be opened to the public by the end of this month.
Reason for the Delay
Technical difficulties have been taking a toll on the opening of these comfort-buying stores. The technology used here is based on machine learning, computer vision and artificial intelligence. Clearly, it is still at a primary stage and Amazon may have to face uncertainties related to its execution which could cause further delay in the opening of the store.
The technology cannot keep track of more than 20 people at a time in the store. Hence, it is unable to track an item that has been moved from the shelf.
Amazon has been testing the store at its campus in Seattle, with employees serving as beta testers. Reportedly, the store has been functioning well if there are just a few customers and are moving at a slow pace. As it is not feasible to ask customers to keep a check on their pace, the opening of these stores had to be postponed.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. Price and Consensus | Amazon.com, Inc. Quote
What is Amazon Go?
Termed as Amazon Go, this no-queue-checkout-counter grocery store is going to be a boon for customers who are too worn-out to stand in long lines at physical cash counters or are baffled at complicated self-checking counters.
This convenience store will offer all kinds of perishable items and grocery essentials as well as drive-up destinations where subscribers can pick up their orders and have them brought to their cars. All that's needed is the installation of the Amazon Go app on one’s cell phone.
This ‘Just Walk Out’ technology uses machine learning and cameras to automatically detect products picked up. And when shopping is done, one can simply leave the store. After a while, money will be charged online from the Amazon account of the customer.
Will the Delay Bring Respite for Brick-and-Mortar Stores?
Not really. This concept has already started to draw attention. Very subtly the concept addresses modern consumers’ changing pattern of behavior. We are talking about that growing set of customers who are in the vicious cycle of taking up professional challenges to earn more and ending up exhausted with no time for comfort or family.
These new stores will eliminate checkout queues, one of the frustrating parts of shopping in store, saving shoppers a lot of time and effort.
The introduction of Amazon Go will hit hard the company’s direct brick-and-mortar retail peer Wal-Mart Stores, Inc. (WMT - Free Report) . A number of other convenient store stocks like Casey's General Stores, Inc. (CASY - Free Report) or Murphy USA Inc. (MUSA - Free Report) could also be at stake.
Amazon Go will also create pricing pressure on sensitive grocery store chains like The Kroger Co., SUPERVALU Inc. or Ingles Markets, Inc.
Bottom Line
Amazon has already gone brick-and-mortar with books and it seems that it is treading the same path with other merchandise as well. The company is targeting the considerably large customer base that still prefers to shop at physical stores. We note that every industry matures and falls. Amazon seems to be gearing up well in advance should online retail ever bottom out.
Shares of Amazon have been steadily treading higher on a year-to-date basis. The stock has generated returns of 38.84% compared with the Zacks Electronic Commerce industry’s gain of 21.69%.
Amazon currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>