Experts weigh in on Amazon's new grocery store

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Experts weigh in on Amazon's new grocery store

By Marianne Wilson - 02/25/2020

Amazon's surprise opening of Amazon Go Grocery, an urban grocery store modeled on Amazon Go, drew lots of industry attention.

The store, which opened in Seattle, uses the same cashierless technology as Amazon Go but on a much larger scale. 

Michael Jaszczyk, CEO of GK Software USA: 
“Cashierless technology is clearly gaining tremendous momentum, especially as Amazon continues to push its Go technology in the grocery space. A snowball effect will take place as other grocers adopt this technology in order to deliver an excellent and frictionless customer service, especially at a time when shoppers continue to demand a faster and more convenient checkout.”

“I fully expect this trend to take hold in due time, as the momentum is only limited by retailers’ cautious approach and need to ensure a frictionless transition. The technology itself is ready for the mainstream, and we’ll soon see many more mid- and top-tier retailers experimenting with the concept.”

“Retailers must also keep in mind that this technology might not be something for all retail formats. For example, processes for weight-based items, age verification and capturing product numbers are challenges that must be solved. But otherwise, once there is a model for excellence for other retailers to learn from, we’ll see many more retailers quickly fall in line (pun only somewhat intended).”

Marcel Hollerbach, CMO, Productsup:
“Amazon Go Grocery opening in Seattle today is a proof point that local retail isn’t going away. Physical real estate can be extremely valuable if utilized correctly, and the retailers who have it figured out are blending offline and online experiences to create easy and exciting purchases."

“By enabling a cashless checkout, customers can avoid the inconvenience and hassle of the checkout line. In doing so, value is added to the Amazon app, which automatically charges shoppers when exiting the store."

"It’s a myth that sales are going completely online, but retailers need to be present for customers online first so that in-person experiences are smart and easy. Amazon is nailing this concept and considering they’re in talks with other retailers to offer similar technology, they won’t be the last."

Arpit Jain, VP of delivery at Nerdery:
“Smart retailers like Amazon understand that the rise of digital doesn’t mean brick-and-mortar is dead. The retail stores that have shut their doors in the last few years didn’t close because customers don’t want to shop in-store anymore, but rather because those retailers failed to improvise the shopping experience.” 

“Today’s consumer expects a connection between digital and physical interactions, which makes something like a cashierless grocery store the perfect balance. It offers the speed and convenience that consumers experience from online shopping, while also allowing them to physically engage with the product before making a purchase.”

“While it’s easy for retailers to focus on their e-commerce strategy, assuming stores are a lost cause, their biggest opportunity for growth is to offer the best of both worlds – physical and digital.”

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