Amazon opens a new grocery store full of smart devices


The first Amazon Fresh supermarket has been set up in just a few weeks just outside Los Angeles in Woodland Hills, California.

The concept is meant to reach other customers then Amazon (AMZN)‘s Whole Foods chain, which it acquired for $ 13.7 billion three years ago. Whole Foods specializes in natural and organic products and does not have mainstream brands such as Coca-Cola, Tide and Oreos.

“Grocery is a very large consumer sector; by most measures, it’s $ 800 billion in the U.S.,” Jeff Helbling, vice president of Amazon Fresh stores, told CNN Business. “And collectively, we are relatively small in space.”

Amazon’s current market share is 4%, Helbling said. Walmart (WMT), in comparison, holds 21%, according to Cowen estimates.

Including Woodland Hills, Amazon confirmed it opens seven Amazon Fresh stores four in California and three in Illinois – but has not announced their opening dates. Some of them are only online websites for fulfilling orders for delivery of groceries.

The Amazon Fresh stores could help Amazon capture market share from Kroger and Walmart and gain additional shopper data while expanding their private label lineup, analysts told CNN Business.

The 35,000-square-foot market in Woodland Hills has departments that are similar to what you would find in your local grocery store – produce, dry goods, fish and meat rooms, as well as prepared food. But the Amazon Fresh store, which has the same name as Amazon’s grocery store, is also loaded with technology.

Inside the store are stationary Amazon Echo Show smart displays that can call Amazon’s virtual assistant, Alexa, that can help answer customer questions, such as, “Where can I find the mayonnaise?”

Amazon Dash Cart, a smart shopping cart that lets you shop like you normally would and skip the checkout line.
The stores will also debut the Amazon Dash Cart, a shopping cart that scans groceries, links to online shopping lists, and also acts as a checkout.

The “smart choice” is similar to a single choice convenience store and is equipped with bar code readers, sensors and scales. After using their Amazon app to effectively log in to the cart, customers place one or two shopping bags in the basket. The cart can scan articles with a barcode and weigh barcode-free products like products.

Customers then go through a specific sensor-enabled job that automatically charges the credit card to their Amazon account.

This is not Amazon’s first rodeo to attempt an autonomous and cashless shopping trip. The company’s Amazon Go convenience stores use hundreds of cameras and proprietary AI technology to let customers in, grab a handful of items, and get an electronic receipt when they leave.

However, the Amazon Fresh stores will have traditional checks and cashiers for customers who choose not to use the Dash Cart or who have larger groceries.

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