Amazon and Groceries: How Amazon can put the hurt to supermarkets.

Amazon is poised to take the super market industry by storm, when it revealed late last year that it was test running a grocery store. This grocery store utilizes technology called “Just Walk Out” technology, which is a combination of computer vision, deep learning algorithms and sensor fusion. What this does it allow for the artificial intelligence do scan your phone when you enter the store, and keep up with the items you take and put back onto the shelves in real time. So even if you take an item and then put it back, you will not be charged. Then instead of waiting on line, you just have to walk out of the store and your amazon account will automatically be charged and a receipt sent to you phone. This is new type of store has the potential to utterly destroy not only super market chains, but almost every kind of brick and mortar store available. Companies like Amazon will only need a fraction of the employees to fully operate the store as the previous need for cashiers will be gone. The only people needed will be janitors, people to restock the groceries and an overall manager to address any issues. And as this spreads to other stores like game stop and other kinds of retail, people will begin to lose jobs at a very fast pace as more and more jobs are simply no longer needed because of technology simply being better.

So one question remains, how do new comers compete with giants like Amazon. Well the short answer is they have to have everything connected to the internet. To describe this best i suggest going to 5:30 in the video above. What Taylor does to solve the problem of having to turn away walk ins, is symbolic of what the age to come is going to bring, utilization of the internet and adapting it to your needs. Taylor describes how he has a button at his place of work that they press every time they have to turn away a walk in customer. This builds a map for them of when they need staff as opposed to when they don’t. This allows them to place they employees on the clock when they are needed most and have less people on when work is slow. Adaption and thinking like this will allow smaller stores to compete with larger companies like amazon. And both are going to be the future of retail around the world.

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One Response to Amazon and Groceries: How Amazon can put the hurt to supermarkets.

  1. Sabrina Torres September 21, 2018 at 9:28 pm #

    After reading this article, I thought about all the other supermarket companies that would suffer from this creation. The difference between other supermarkets and Amazon Go is that it’s more efficient, less time consuming, and technology based. Majority of the other supermarket companies have generic stores and do not have new innovative technology like Amazon Go would. This generation of people enjoy having things quick and easy handed right to them. A supermarket like this one would attract different target markets.
    As stated in the article, people will begin to lose jobs at a very fast pace as more and more jobs are simply no longer needed because of technology simply being better. I do not agree with this concept because it does not allow people to work in those specific fields. The more technology there is, the less people will have jobs. This will be beneficial to big companies because they are still making profits of their business. For the workers, it won’t be beneficial because there will only be a limited amount of jobs they can choose from.
    In order for supermarkets to continue being in this market with Amazon Go, they need to create more innovative technology that will make people want to shop their over Amazon. For example, when a stop and shop opened up in my area, they came up with the idea of having portable scanners for each customer to be able to scan their food as they put it in their cart. This was an easy and efficient way for customers to check out their food and leave the store in a reasonable time. Competing supermarkets need to figure out a way to target all different type of markets in order for their businesses to survive.

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