Amazon Go likes its food like its consumers: hip, healthy, honest
Amazon Go opened to the public on Monday, and its food selection is distinctly Millennial. It’s healthy (you’ll find cubed melon and pineapple containers and boxed salads – no cheese burger and chips), it’s hip (catering to Millennial tastes, the company’s offering includes trendy cosmopolitan options like “artisanal cheeses” and Mediterranean lamb sandwiches), and it’s honest (feedback showed that consumers want things like gluten free and vegetarian options clearly spelled out on the packaging). Coincidentally, these attributes also define the shoppers Amazon is looking to win over: health conscious Millennials who can be trusted to us an “honour system” and not pilfer food.
Three weeks into 2018, Amazon’s share price has already risen by 13%
SOURCE: Yahoo Finance
Amazon Go is a new concept in shopping that the company hopes will win it a space in the heavily contested convenience store industry. It offers the kind of groceries and food-to-go that its employees might like: the kind of people who work at a big tech company in Seattle. As a result, you’ll find everything from staples like bread and milk to food-to-go options that appeal to the Whole Foods middle class set. But the thing that really makes it stand out is the absence of tills and cashiers: Amazon Go is a checkout-free experience where customers pay via the presence of an app on their phone, and where the company trusts that people who try to steal are in the minority.
Amazon is hoping that this remarkable experience – real grab-it-and-go shopping like we’ve never seen before – will make it stand out from the other 150,000 convenience stores in America. There, checkout queues can easily grow to 20-minute plus experiences. If Amazon gets it right, removing those queues could be a game changer.
Jeff Lenard, spokesperson for the National Association of Convenience Stores, thinks it’s an interesting idea – but he cautions that customers should wait and see what it’s like before they get too excited. Ultimately, good food and fair prices is what makes a successful retailer, in his view. He told reporters: “the coolness of the technology will undoubtedly get people to check it out, but the quality is what will get them to come back.”
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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