Tuesday, September 24, 2019

Amazon Go Store Is Checkout Free

By on December 5, 2016

FILE - This Sept. 6, 2012, file photo, shows the Amazon logo in Santa Monica, Calif. Amazon is taking on Netflix and Hulu with a stand-alone video streaming service. Starting the week of April 18, 2016, customers can pay $8.99 a month to watch Amazon’s Prime video streaming service. Previously, the only way to watch Prime videos was to pay $99 a year for Prime membership, which includes free two-day shipping on items sold by the site. The video-only option won’t come with any free shipping perks. (AP Photo/Reed Saxon, File)

This Sept. 6, 2012, file photo, shows the Amazon logo in Santa Monica, Calif. (AP Photo/Reed Saxon, File)

NEW YORK – Amazon is testing a grocery store model in Seattle that works without checkout lines.

Called Amazon Go, shoppers scan their Amazon app when they enter the store, and then sensors register items that shoppers pick up and automatically charge them to the Amazon app.

If a shopper puts the item back they aren’t charged.

The store offers ready-to-eat meals, staples like bread and milk and meal-making kits.

The store is in testing and is open to Amazon employees on a trial run. It is expected to open to the public in early 2017.

The e-commerce powerhouse has also been dipping its toe into the physical realm. It has opened three bookstores in California, Oregon and Washington with traditional check outs. Two more are in the works in Illinois and Massachusetts.

Cowen & Co. analyst John Blackledge says the new grocery store is just one way that Amazon has been setting its sights on the food and beverage category, a lucrative $795 billion market. It also offers grocery delivery in some markets and Prime Now for last-minute items delivered in one or two hours.

“We are encouraged by Amazon’s growing footprint in this category, which we see as ripe for potential disruption given younger demos increasingly purchasing food and beverage grocery items via digital channels,” Blackledge said.

Amazon.com Inc. shares rose $18.69, or 2.5 percent, to $759.03 in afternoon trading Monday. Its shares are up almost 13 percent since a year ago.

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