Analysts predict Amazon’s cashierless stores could be a $4.5B business by 2021

After less than a year, Amazon Go stores already have an estimated annual revenue that is 50% higher than traditional convenience stores, suggesting it could be worth billions by 2021.

Not only are Amazon’s new cashierless and cashless stores giving traditional “convenience” stores a run for their money, new research suggests they’re already more lucrative.

Analysts predict Amazon’s cashierless stores could be a $4.5B business by 2021

Based on in-person tests and data-collection, analysts at RBC Capital found that each Amazon Go store will reel in an estimated $1.5m in yearly revenue, 50% more than your typical corner shop.

No cash, no employees, no problem

The e-commerce behemoth opened its first Go store in Seattle at the beginning of 2018, and has added 8 more locations since — with construction on a 9th location in New York City reportedly underway. 

But 8½ Go locations are barely the beginning. 

Amazon is considering a plan to open as many as 3k new Go stores over the next 2 years, which, based on RBC’s report, would mean that the storefronts could become a $4.5B business by 2021.    

Problem is, Amazon Go stores cost a pret-ty penny 

While it may be more profitable long-term, the upfront investment for cashierless stores is much larger than “dark age” convenience outlets.

The first Go location cost more than $1m in hardware alone, which, according to Morgan Stanley, means the e-commerce giant would need to shell out close to $3B for 3k stores.

Of course, if anyone has the tickle to do it, it’s Amazon.

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