Amazon has opened its first “just walk out” shop outside the US. It’s a till-less grocery store which is located in London. In Amazon Fresh, the customers can scan a smartphone while entering and automatically get billed as they leave the store. It provides hundreds of own brands and third-party products for the customers as well as serves as a place to collect and return goods bought online.
Natalie Berg, an analyst said, “Having a physical presence will enable Amazon to address some of its weaknesses, like the mounting cost of deliveries and returns.” It will definitely pose a threat to the major chains in the near term. Amazon’s approach promises a more frictionless experience than other retailers. Customers only have to place an item in a bag or carry it out, to be charged by the store, which is located at the entrance of a shopping centre.
The US firm is so confident of its tech that it says customers are not under any obligation to check all the items, which were accounted for. Matt Birch, director of Amazon Fresh Stores said, “When you’re finished, you’re free to walk out.”
The technology which is being used in Amazon Fresh is quite amazing as the company has used hundreds of camera, depth-sensors and software developed using deep-learning artificial-intelligence techniques but does not involve face recognition.
Amazon said it had used many of its own-brand groceries including milk and eggs, and has launched an “Our Selection” sub-brand for premium products including desserts. This launch currently won’t pose a big and immediate threat to big established grocers but they know that Amazon has the potential to be hugely disruptive force and has already forced them to up their game.
