Analysts: $ 3 Billion for AmazonGo Stores | Business



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According to Morgan Stanley analysts, if Amazon.com opens a plan to open 3,000 non-cash stores by 2021, it could cost as much as $ 3 billion, but also notes that one of the largest companies

The e-commerce giant is looking closely at the future of its AmazonGo stores, where shoppers use a smartphone to make purchases.

Amazon unveiled the first store of its kind near its headquarters in Seattle in 2016 and has since announced two additional sites in his hometown and one in Chicago. Some stores offer only a limited selection of salads, sandwiches and snacks, while others offer a small selection of groceries, which makes them closer to home. 39, a convenience store.

"We believe that Amazon must invest between $ 0.5 and $ 3 billion in the construction of these 3,000 stores," analysts Brian Nowak wrote Thursday. "Given Amazon's need to invest in in-store automation technologies, cameras and sensors, we would not be surprised to see costs at the top of this range," they added. . According to the note, it would still be a small investment based on Amazon's $ 200 billion total operating 2018 total.

AmazonGo, in downtown Seattle, needed more than a million dollars worth of computer equipment, a familiar person said.

By adding 3,000 convenience stores, AmazonGo would be among the largest US channels.

Although a costly investment, analysts said the benefits of slipping indices on human behavior would outweigh the costs.

"Go's technology and offering is contributing to Amazon's efforts to build deeper and more integrated relationships with consumers, with the goal of increasing data capture and reporting." understanding demand "Over time, Amazon's ability to use all of these data sets should result in a more customer-focused shopping experience and a larger share of the portfolio to Amazon."

Morgan Stanley Amazon's rates store a purchase. Shares rose about 1% to $ 1,942.82 at 10:41 am in New York. They have won 66% this year.

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