Grocery Store Industry
The grocery store market is a mature and well established industry, dominated by select number of players. The grocery store industry consists of about 2.6 million employees. Of these 2.6 million employees, there is a total of 856,850 cashiers. By eliminating the need for cashiers, AmazonGo will have roughly ⅔ the amount of employees compared to its competitors. In order to step into the well established grocery store industry, AmazonGo is cutting the huge labor cost of cashiers as an advantage against their dominating competitors. The only recent solution to this problem was the invention of the self check-out machine, which was wide-spread in the early 2000's. Another piece of Amazon Go’s business model that separates them from the rest of the industry is their use of space. No more cashiers means no more checkout stations. By eliminating checkout stations, there is more free space for more product that other stores don’t have. In theory, putting these two ideas together would make Amazon Go’s revenue per square foot much higher than their leading industry competitor.