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Amazon Expands Cashierless Technology to Newark Airport

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Amazon.com Inc.’s (AMZN - Free Report) expansion of the cashierless checkout technology has been in full swing.

This is definitely something new. The company now plans to sell the cashierless technology to other retailers.

Reportedly, Amazon’s cashierless checkout technology will be launched in one of OTG’s CIBO Express stores on Mar 16. The store — which offers food, drinks and other essentials — is located in the Newark Liberty International Airport.

Reportedly, the company has also signed several deals with other retailers in a bid to expand the Just Walk Out technology to more stores.

The move is inline with the company’s strategy to expand the cashierless technology to as many stores as possible. In addition, adoption of the Just Walk Out technology would result in increased usage of Amazon Web Services, thereby expanding its customer base.

Markedly, the latest move of the retail giant would definitely add a feather to the lucrative services that Amazon offer to other retailers.

Amazon.com, Inc. Price and Consensus

 

Cashierless Store Technology Gains Momentum

With the expansion of this technology, Amazon aims at making an average office goers’ life easier in today’s fast-paced world by allowing them to grab whatever food item they want.

The “Just Walk Out” technology uses machine learning and cameras to automatically detect the picked-up products. Once the shopping is done, one can simply leave the store. After a while, money will be charged online from the Amazon account of the customer.

The technology has been gaining a lot of momentum as it eliminates checkout queues, one of the frustrating parts of shopping in store, saving shoppers a lot of time and effort. The company definitely has first-mover advantage with this system.

Amazon had started its first cashier-free convenience store in 2018. Since then, the company has been making all efforts to open more physical Amazon Go convenience stores in the United States. Just recently, it opened a full-size grocery store called Amazon Go Grocery in Seattle. The store is 10,400 square feet and offers items including fresh produce, meats, and alcohol.

We believe the latest move will help the company to further expand this technology in the growing online retail market.

Bottom Line

Amazon’s aggressive retail strategy and distribution strength will continue to benefit it in gaining traction in the retail space.

The growing footprint of Amazon Go store and its new efforts to expand the cashierless facility to other stores will further improve the company’s market position in the retail space.

Zacks Rank and Stocks to Consider

Amazon currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Stamps.com Inc. , eBay Inc. (EBAY - Free Report) and Atlassian Corp. (TEAM - Free Report) . While Stamps.com and eBay sport a Zacks Rank #1 (Strong Buy), Atlassian carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Stamps.com, Atlassian Corp. and eBay is currently projected at 15%, 22.3% and 11.3%, respectively.

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