Why US Consumers Shop BI Intelligence


Amazon is postponing the opening of its Amazon Go convenience store because of technical issues, according to The Wall Street Journal.

The cashier-less convenience store was scheduled to launch in Seattle at the end of March, but the payments technology needed to replace employees at checkout is not working properly. This is an unwelcome snag in Amazon's wider plans to tackle the grocery space — both online and offline.

  • The technology uses cameras, sensors, and algorithms to track what customers pick up for purchase. However, it reportedly malfunctions when more than 20 people are in the store. In order to make this a worthwhile investment for Amazon, the technology will need to be able to support large crowds.
  • The convenience store is just one of the brick-and-mortar formats Amazon has been planning to boost its grocery sales. The e-commerce giant is reportedly opening a click-and-collect grocery store, AmazonFresh Pickup, also in Seattle. In addition, Amazon may have a third, larger store format in the works. This format could employ robots to pick up staples and household goods on an upper level, while allowing shoppers to pick out produce, dairy, and meat on the first floor.

Online grocery is still only a small fraction of the wider market in the US, so if Amazon wants a successful grocery arm, it will need to open brick-and-mortar stores. The portion of US households that bought food online was about 23% in 2016, according to the Digitally Engaged Food Shopper Study by Nielsen and the Food Marketing Institute. Additionally, consumers still want to see and feel products they are buying — a particularly important factor in purchasing groceries. This means that for Amazon to gain a foothold in the grocery segment, a physical presence will be crucial.





Here are some key takeaways from the report:


In full, the report:


