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Business is booming at first Amazon Go stores

Business is booming at first Amazon Go stores

Initial reports about the Amazon Go store concept have been positive, and sales appear strong. In fact, advisory firm Brick Meets Click estimated that sales per square foot at the Seattle store are about $2,700. That’s nearly $5 million in annual sales for an 1,800 square foot, cashierless store.

According to Brick Meets Click, “Amazon Go stores produce more sales per square foot than virtually any other retailer except Apple and a few other specialty stores.”

The company also estimates that the inventory turns over around 50 times per year, which is four-to-five times more than at other retail operations.

Furthermore, digital marketing firm inMarket believes Amazon Go stores are more of a threat to fast-casual restaurants and convenience stores than to supermarkets. Peak visitation hours at Amazon Go stores in Seattle and Chicago over the past 60 days have been on weekdays during lunch and breakfast.

“Amazon Go’s combination of ready-to-eat and ready-to-cook food choices challenges both grocers and restaurants,” reported Brick Meets Click Co-Founder and Managing Partner Steve Bishop. “With no lines or waiting, it’s easy to see why people would stop by twice a day – first to grab lunch and later to pick up a dinner portion on their way home.”

There are six Amazon Go stores open, all with the company’s “Just Walk Out” technology, and more locations are planned. In fact, Bloomberg reported in September that Amazon is mulling plans to open up to 3,000 Amazon Go stores by 2021.