Is Amazon Go The Future of Retail?
The launch of Amazon Go, and the closure of over 7000 stores in 2017, has many believing that this is the end of retail as we know it. Amazon Go is the shiny new physical banner under the Amazon brand, and this automated reinvention of the retail experience has many retailers wondering how they will compete, or if they should even bother. A recent RetailDive article even went so far as to say:
“Even if Amazon Go doesn’t work, Amazon could still leverage its nearly zero cost of capital to build a ton of them, and the mere capital investment of trying to keep up could sink the most dimwitted of the competition. Few, if any, stand a chance to compete effectively.”
Amazon Go has no checkout lines, cashiers, or registers. Customers use the Amazon Go app to enter the store by scanning a QR code. Anything you pick up is added to your virtual cart, and any items you put back will be removed. Once you’re finished shopping, you can walk right out. Your Amazon account will automatically be charged. This is all accomplished using expensive cameras and high-tech sensors. The combination of cameras and sensors keeps track of where the items are located.
So is it time to invest in costly visual recognition technology? Not quite yet. But if you are still sleeping, it is now time to wake up. Even for Amazon, this technology is imperfect and was delayed by over a year. Retailers still have a big opportunity to look to reinvent and evolve their own in-store experiences. Pick up and walk out is only one idea, an idea that has still to prove itself; an idea that may work for a sandwich but not so much for a television, or bra for that matter.
If you are a retailer looking to reinvent your brand experiences for the future, we’d love to show you how Connected Products and In-Store Displays are the perfect foundation on which to build your new in-store experiences. Contact us!