Having almost 3,000 locations would make Amazon Go the third-largest convenience store chain in the USA, just under 7-Eleven and the parent company of Circle K, according to CSP, an industry publication. Kroger fell 1.5 percent, and Target declined 0.6 percent.
Customers enter Amazon Go by swiping their smartphone at a turnstile.
Currently, Amazon Go has three locations in Seattle, Washington and one in Chicago, the latter of which just opened this week.The first Seattle location opened in 2016, and it is one of two that have a small selection of groceries in addition to the limited options of salads, sandwiches and snacks all of the stores have. Amazon now operates four such stores, three in Seattle and one in Chicago, and these are being used as trial-runs for a larger scale expansion of the business. The stores could also help Amazon become a bigger player in the pharmacy business because it agreed to buy PillPack, an online drugstore, in June.
Speculation of a widespread rollout of Amazon Go isn't the first time the company has been rumored to have plotted a massive expansion into brick-and-mortar stores.
A 3,000-store footprint would catapult Amazon into the ranks of America's major physical retail chains.
Those companies had already been on notice for more than a year after Amazon bought its way into brick-and-mortar groceries with the $13.5 billion acquisition of more than 470 Whole Foods Market stores.
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Amazon, like many secretive technology companies, rarely telegraphs its growth plans. Amazon has committed to opening stores in NY and San Francisco.
The cost of the technology in just one store cost Amazon one million dollars.
Such an expansion could put Amazon back into an investment cycle.
Amazon is targeting dense urban areas with lots of young, busy, affluent residents willing to spend a little more than a typical fast-food experience for better quality food, the people said. Once inside, an array of cameras and sensors track shoppers' progress through the store, charging a credit card on file for items the shoppers take off shelves.
Amazon Go sells an array of prepared food alongside grab-and-go convenience-store grocery staples.
Amazon's ramp up could accelerate quickly.