Just when we thought Jeff Bezos had taken the grocery and incidental shopping experience to a new level with his “Amazon Go” convenience and grocery stores in the U.S.A., it appears he is still on the move…and this time, globally.
The first Amazon Go opened in Seattle, WA on January 2018
For those readers who are not familiar with the “grab and go “concept, these are stores where you scan an app on your smart phone as you enter (linking to your Amazon account), and then shop to your heart’s content and walk out. No check-out line, no cashiers. Just take what you want and leave.
How it works: Multiple cameras are installed on the ceiling of the stores. They are equipped with a type of AI (artificial intelligence) called “computer vision.” This is what keeps track of everything that goes into your bag or cart and your Amazon account is charged when you exit the store.
Now Jeff Bezos has decided to license his technology to Sainsbury’s in London. This is the first international licensing agreement, and one must wonder…why? WHY would he license this incredible technology to his competitors?
The answer is simple and is part of the master plan. When Amazon licenses the technology to competitors, it also has access to consumer data – buying habits, frequency, volume purchased and so on. Amazon purchased Whole Foods in 2017 to establish itself in the grocery business and utilize the locations for distribution and customer pick up. If, in the future, Amazon wants to purchase any overseas grocery or convenience stores that it has already licensed its technology to, it has all the information it needs and an understanding of the business before making an offer to buy the chain of stores or store. This is the ultimate competitive advantage for Amazon. Make no mistake, this is all part of Bezos’ plan for continued expansion and distribution throughout the world.
This computer vision technology that allows consumers to “grab and go” has many benefits…and not only for the consumer. Consider the improvement in productivity, inventory control and labor shortages that now exist here in the U.S. More and more chains will have to adopt this type of technology to be competitive and retain consumer support.
It’s a whole new shopping world and Amazon is leading the charge forward – so keep your eyes on Bezos in the future!
