Are Amazon Go Stores Closing?
The answer to this question is both yes and no. Amazon Go stores are a new type of retail store which offer customers the convenience of a grocery store, minus the checkout lines.
This innovative concept was first launched in Seattle in 2016, and since then has slowly been rolling out across the US. However, due to the Covid-19 pandemic and resulting economic downturn, it appears that Amazon Go stores are beginning to close down.
Amazon Go stores rely heavily on technology, as customers can use their phones to scan items they wish to purchase and then walk out without having to check out. This is enabled through an app that customers must download before they can shop at an Amazon Go store. The app uses cameras and sensors which detect the items that are taken off shelves, allowing customers to shop without waiting in lines or dealing with cashiers.
The challenge for Amazon Go stores is that they require significant upfront investments in order to get them up and running. In addition, these types of stores must contend with higher labor costs than traditional grocery stores due to their need for customer support staff who are able to help shoppers navigate the technology used at these locations. The result of these costs has been a decrease in the number of Amazon Go stores opening up across the US, as well as some current locations closing down in response to reduced customer demand due to Covid-19 restrictions.
In addition, some experts have suggested that Amazon’s decision to open Whole Foods locations has also played a role in their decision to close some existing Amazon Go stores. While Whole Foods offers many of the same products as Amazon Go stores do, they have much lower overhead costs due to their more traditional setup and lack of technological complexity associated with Amazon Go’s system.
Overall, it appears that while some existing locations may be closing down due to economic pressures caused by Covid-19, Amazon is still committed to growing its presence via its Amazon Go concept. The company recently opened up a new location in New York City and is reportedly looking into other markets for possible expansion opportunities. As such, it seems likely that we will continue seeing more Amazon Go locations popping up across the US for some time yet.
Conclusion: Despite some closures due largely attributed to economic pressures from the Covid-19 pandemic, it appears that Amazon still sees potential in its innovative concept of ‘Amazon Go’ stores and is continuing its expansion plans into other markets across the US.