Amazon has opened its first Amazon Go Grocery store in Seattle, featuring the retailer’s cashierless ‘Just Walk Out’ technology. Late last year, Amazon announced plans for new grocery store formats in 2020. This Seattle store is roughly five times bigger than any of Amazon’s previous 25 ‘Go’ convenience stores at 10,400 sq ft and is the first to stock fresh produce as well as meat, bakery items and household essentials. The store features the same customer tracking technology as other Amazon Go stores with cameras and sensors linking purchases to an individual’s online account.
Amazon’s latest move into a checkoutless grocery format comes after months of speculation, and amidst growing competition with Walmart within the US grocery market. The new format will allow Amazon to develop a differentiated offering to that within its 500 Whole Foods stores, further testing and developing this grocery offering as the retailer seeks to build its capabilities and customer touchpoints in this channel.
Advances in technology are enabling retailers to rethink the in-store customer experience. As frictionless technology becomes common place and in-store design changes, traditional impulse merchandising must be rethought by CPGs. New adjacencies, digital marketing, branding and packaging will be required to ensure products stand out in a store environment that will be built for speed.
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