Amazon Go grocery stores – The future of shopping?

Amazon’s recent superstar performance on the stock markets has caused a lot of people to sit up and take notice, with analysts, shareholders, and competitors alike wondering whether the surge represents a flash-in-the-pan for the e-commerce giant or just the beginning of greater things.

In a note to his clients, Anthony DiClemente, a well-respected analyst with Nomura Instinet gave his read on the situation. In his opinion, Amazon’s latest move to go for a piece of the grocery industry market pie which he considered to be one of the most under-penetrated and potentially profitable sectors, was a genius move by the mammoth company.

DiClemente went on to justify his reasoning by giving an overview of the competition’s activities and forecasts. Looking at retail giants like Wal-Mart and Costco, he gave the upper hand in the race to Amazon, citing their strong positioning to see them grow their sales volumes a bit faster than Wal-Mart and considerably faster than Costco in the coming financial years.

Why the Confidence?

It might seem like a somewhat bold claim to predict anyone outstripping mega-players like Wal-Mart, but a look at Amazon’s recent initiatives in the industry make the claims seem less far-fetched.

AmazonFresh, which is a grocery delivery service being offered to Prime members exclusively is spreading its reach, being tested and rolled out across more states nationwide.

More significantly, some say, is the much-touted Amazon Go, which promises to deliver a checkout-free shopping experience to customers. Though still in the early stages of beta testing, the service looks set to be a sure hit with today’s consumers who put a premium on convenience, price, and experience, according to a recent report from the real estate firm Jones Lang LaSalle.

To put the cherry on top of this rosy outlook, Amazon’s Alexa platform places the company at a very advantageous footing as an advertising platform, which is what really differentiates Amazon from comparisons with Wal-Mart and the like and places them in Facebook and Alphabet territory.

Amazon CEO Jeff Bezos has managed to accomplish incredible things over at Amazon, and it would seem that the next trophy in sight is the grocery industry.

Photo credits – Amazon