Amazon Go Projecting $4 Billion in Sales by 2021

Amazon Go storefronts have only been around for a couple of years, but in that brief frame, they have pulled multi-million-dollar profits. Compared to a typical convenience store, Amazon Go stores are pulling in at least 50 percent more profit altogether. Using those profits, as well as Amazon’s promise to open 3,000 more storefronts as a framework, Recode has put together an estimate for Amazon Go’s worth in a couple of years. It’s impressive, to say the least.

According to Recode’s calculations, by 2021, Amazon Go could be a $4 billion business. Of course, actually opening and maintaining 3,000 more storefronts could cost anywhere from $500 million to $3 billion, but even in a worst-case-scenario, that’s still a $1 billion net profit in Amazon’s pocket, and is relatively small potatoes compared to the $200 billion Amazon dropped on retail expenses in 2018.

While Amazon Go is effectively a convenience store, these projected profits could be a harbinger of Amazon’s further incursion into the retail industry. Amazon already offers grocery delivery services, both online and through Whole Foods. It’s not a major leap to expect a full-fledged cashier-less grocery store down the line, or even a large-scale discount store like Wal-Mart or Target. If the big guys want to stay in the game, they need to find the most effective way to ape Amazon’s strategies, and fast.

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1 year ago
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