Amazon will consider opening 3,000 non-cash stores by 2021 after opening its first branch in Chicago this week

Amazon.com is considering a plan to open 3,000 new stores without Amazon Go cash in the next few years, according to people familiar with the material, an aggressive and costly expansion that would threaten local chains like 7-Eleven sandwich. fast service. stores like Subway and Panera Bread and pizzerias and taco trucks.

CEO Jeff Bezos sees the elimination of meal blocking in busy cities as the best way for Amazon to reinvent the shopping experience, where most of the spending is still going on. But he's still experimenting with the best format: a convenience store that sells fresh prepared foods as well as a limited grocery selection similar to the 7-Eleven franchises, or a place to simply grab a quick meal for busy people, similar. at the UK based chain, ready to eat, one of the people said.

A spokeswoman for Amazon declined to comment. The company unveiled its first cashless store near its headquarters in Seattle in 2016 and has since announced two additional sites in Seattle. The first store outside of the hometown of Amazon opened Monday in Chicago. Two of the new stores offer only a limited selection of salads, sandwiches and snacks, which shows that Amazon is experimenting with the concept simply as a meal-on-the-go option. Two other stores, including the original Amazon Go, also offer a small selection of groceries, making it closer to a convenience store.

Buyers use a smartphone app to enter the store. Once they have scanned their phones at a turnstile, they can grab what they want in a range of salads, sandwiches, drinks and snacks, then go out without stopping at a cash register. Sensors and computer vision technology detect what customers take and charge automatically, eliminating payment lines.

The challenge for the Amazon plan is the high cost of opening each site. According to someone familiar with the problem, Amazon Go in downtown Seattle needed more than $ 1 million worth of computer equipment. Reducing the focus on take-out food preparation would reduce the initial cost of opening each store as it would require fewer cameras and sensors. Prepared foods also have wider profit margins than groceries, which would help reduce the time needed for stores to become profitable.

Amazon has become the largest online retailer in the world offering a wide selection and fast, convenient delivery. In physical stores, Amazon favors convenience over selection to win business. Amazon's other initiatives include approximately 20 bookstores in the United States, including one on Southport Avenue in the Lakeview neighborhood of Chicago, and the Whole Foods Market natural grocery chain, which was acquired last year. Amazon Go is the most distinct of all its physical stores.

At an event in Washington, DC, last week, Bezos said Amazon was "very interested" in the physical stores, but only if he had something new to offer. "If we offer a similar product, it will not work," he said.

Such an expansion could put Amazon back into an investment cycle. Bezos is willing to lose money on long term initiatives when he feels the opportunity. Amazon Web Services, the company's profitable and fast-growing cloud computing business, has not been profitable for years and Bezos has stayed the course, according to a familiar person. Amazon also regularly loses money expanding internationally.

With 3,000 convenience stores, Amazon Go is one of the largest US channels. The Internet giant plans to create a dozen sites by the end of the year, about 50 sites in major metropolitan areas in 2019, then 2021, said the people, who asked for the Anonymity by discussing internal plans. Opening several nearby sites, such as Seattle, could also help Amazon reduce costs by centralizing food production in a kitchen serving many stores.

The Tribune had previously reported that Amazon was planning stores in the Willis Tower and an office building connected to the Ogilvie Transportation Center. The company declined to comment.

The United States currently has 155,000 convenience stores, of which 122,500 are combined with service stations, according to the NACS industry group. Non-fuel shopping at convenience stores totaled $ 233 billion in 2016, with cigarettes and other tobacco products being the top-selling items.

According to Amazon, Amazon targets dense urban areas with many affluent and affluent residents, willing to spend a little more than just a fast food experience for better quality food. Targeted locations make it less threatening for combinations of suburban gas stations and convenience stores and pose a threat to fast-food restaurants in major cities, such as Subway Restaurants, Panera Bread Co., and Ready-to-Eat. Pret, based in the United States, has 450 locations around the world, including New York, Boston and Chicago, which focus on fresh and healthy foods.

Amazon Go will be more of a threat to fast-casual restaurants if it targets cities, said Jeff Lenard, vice president of NACS. Buyers evaluate location and lack of lines as the most important factors when shopping for practical reasons, he said.

"Amazon Go already has no line," Lenard said. "The key to success will be convenient locations, if you are within 500 meters of the boardwalk and bike, the novelty of the technology will be more important – it is too far away."

Chicago Tribune staff contributed.