By Devangi Narang
Amazon.com Inc opened its first checkout-free automated grocery store to the public on Monday. Amazon Go is a store that lets you browse, grab and walk out, skipping the checkout line. The store, located in the middle of Amazons Seattle campus, relies on cameras and sensors to track what shoppers remove from the shelf.
Cash registers and checkout lines are superfluous because Amazon Gos systems automatically debit the customers accounts for the items they take, sending the receipt to the app. The Amazon Go grocery and convenience store opened exclusively to Amazon employees on December 5, 2016, for a test period. It was originally scheduled to open to the public in early 2017 but was delayed, in part due to the complexity of the technology.
How does the store work?
The convenience store and its high-tech approach aim to solve the biggest complaint of shopperslong checkout lines. To shop at the 1,800-square foot store customers must first download the Amazon Go app and link it to a payment method. Then they open the app on their phone and scan it at the four turnstiles at the entrance. Once inside, cameras in the ceiling, sensors on the shelves and a massive amount of computing power track every item they pick up and what goes into their pockets or bags.
As they move through the store, each item is added to their digital tab. If they pick something up but then put it back, the store will know and remove the item from the customer’s virtual shopping basket. Sleek black cameras monitoring from above and weight sensors in the shelves help amazon determine exactly what is taken.
The technology behind the Amazon Go store is called the Just Walk Out technology because it enables the customers to just walk out of the store after they are done with their shopping. The system automatically debits the customers accounts in the app and sends a receipt for the items they take. The technology is proprietary and Amazon is expected to keep the app’s details a secret. The company has no plans to open any more Amazon Go stores or export the technology for the time being, despite intense interest from the public. Amazon has been working on the technology for five years and wants to hold onto its technological advantage.
The problem of job creation
An expansion of Amazon’s grocery technology could have enormous implications for employment. Many critics note that the introduction of automated stores could end up making thousands of jobs redundant as checkout clerks and cashiers give way to smart store that do their own checking out.
Amazon has been investing heavily in automation, running the gamut from delivery drones to warehouse robots. At the same time, it has been hiring thousands of new employees each year, with an increase of 40% year over year. However, an analysis published last year by Quartz looked at employment data for the retail industry as a whole and found that Amazon’s growth and hiring numbers do not offset the overall retail loss of jobs that it caused.
Amazon Go is an attempt to reinvent the physical store with the same mindset that brought online shopping into existence. This technology comes as huge changes are already taking place in the grocery business, including Amazon’s purchase of Whole Foods, the rising numbers of customers who want to order online and shifting tastes that have pushed stores to stock more organic and locally-grown items. The concept of a fully automated store offers an exceptional chance to gather customer data, including customer preferences, which can be used by the industry to make better decisions about how they purchase their stock.
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