Between demonstration space and Proof of Concept, Amazon Go convenience stores remain the flagship of the giant’s expertise in retail automation.
But, in search of savings, Amazon closes a third of its sites, without giving up, he says. 8 stores, located in San Francisco, New York and Seattle, will close their doors. 21 stores of the same type continue to operate, but plans for new locations are frozen.
At the beginning of January, Amazon announced a vast social plan, concerning 18,000 employees, particularly affecting its physical commerce activity.
Amazon does not want to be a simple plus player in the physical retail market
Above all, Amazon does not want to be a simple plus player in the physical retail market. The strategy of “the winner takes all”, which is superbly successful online, requires finding a totally disruptive concept to impose itself in physical commerce.
And it seems that full-blown automation is not the winning formula, for the moment at least, for this concept launched in 2018.
However, Amazon has already invested heavily in physical retail. In 2017 the company acquired the American supermarket chain Whole Foods for 13.7 billion dollars. But 5 years later, physical sales, if they have increased by 10%, represent only less than 4% of the turnover of the American giant.
Last year, Amazon closed 68 physical outlets, including all of its physical bookstores.