How Amazon's Go Grocery Store 'Won Another Battle' Against Retail

Amazon.com, Inc. AMZN has yet to win the war against the physical retail universe but it certainly scored a victory with the launch of its new grocery store concept, according to Loup Ventures' Andrew Murphy.

Amazon's Go Grocery store is the first-of-its-kind to offer consumers a large-format grocery store with a fully automated and automatic checkout experience, according to Murphy. The company has experimented with the concept in its smaller convenience size Amazon Go stores, but its new grocery store is larger at 7,700 square feet in front of house and 10,400 square feet overall.

Why It's Important

Amazon can further leverage its technology to its even larger Whole Foods stores, which stand at around 40,000 square feet on average.

Encouragingly, the company could license its technology to other retailers as this would follow a similar model seen across its Fulfilled by Amazon (FBA) and Amazon Web Services (AWS) businesses, Murphy wrote in his blog post. Branded retail stores would likely be attracted to the technology, mostly for the ability to save on labor and processing costs.

Amazon has already been crowned the king of online retail and its brand new Amazon Go technology could end up with a similar title in the future of automated retail, according to Murphy.

"We're bullish on the empathic retail space partly because it's outside of Amazon's core competency (convenience), leaving room for others to succeed," he wrote.

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