Amazon Go Ushers In A New Era In Retail Technology

Nigel Fenwick

Amazon's new Amazon Go store ushers in a new era in brick and mortar grocery and convenience shopping. In the early 80's, electronic point of sale (POS) dramatically changed the checkout experience in grocery stores, speeding up checkout lines. Today, a checkout without POS is unthinkable unless it's a farm stand on the side of the road … and even here we're likely to see Square hooked up to a smartphone. But even with POS, the checkout has always been the big time waster in any grocery shopping experience. Until this week.

Six years ago, "The Ultimate Grocery Shopping App" described a future in which the grocery shopping experience was radically different from what existed in 2010. This week, Amazon has brought part of that vision to life by opening its first Amazon Go brick and mortar convenience store for Amazon employees in Seattle. A convenience store with no checkout lines … with no checkout.

Gone are the POS systems. Welcome to the era of automatic checkout. Amazon has used new technologies like image recognition and machine learning to go beyond at least some of the experience predicted back in 2010. Instead of shoppers having to scan items into their shopping cart, Amazon uses this advanced technology to track what shoppers pick up and add to their cart and what they put back on the shelf. No scanning, no checkout … just walk out and pay.

Why will this take off? Becuase it gives shoppers back significant time savings and it gives retailers potentially enormous costs savings.

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