Based on RBC Capital Markets, Amazon Go's unmanned retail business will reach $4.5 billion by 2021.
Amazon Gos, Amazon's first unmanned retail store, opened in Seattle in late 2016, initially only for employees. Last year, Amazon began expanding its business and opened seven Amazon Go businesses in Chicago, San Francisco and Seattle.
Amazon Go is not equipped with cashiers. Through a series of sensors and cameras, customers only need to grab items from the shelves and automatically charge when they go out. RBC Capital Markets analysts expect Amazon Go to generate about 50% more revenue than traditional convenience stores.
Specifically, the Royal Bank of Canada Capital Markets estimates that Amazon Go's average annual revenue is $1.5 million, based on an average of 550 customers entering stores every day, excluding the time of no business.
In addition, it was reported last September that Amazon plans to open 3,000 Amazon Go unmanned convenience stores in the United States by 2021. This means that by 2021 Amazon Go's annual sales will reach $4.5 billion.
Opening 3,000 Amazon Go will make Amazon one of the largest chain stores in the United States. According to people familiar with the situation, Amazon plans to expand the number of Amazon Gos to 50 this year, reaching 3,000 by 2021.
Industry insiders say that Amazon Gos'biggest challenge for Amazon is its high cost. It is reported that Amazon Gos, Amazon's first company in Seattle, costs more than $1 million in hardware alone.
Morgan Stanley expects Amazon to invest $3 billion to launch 3,000 Amazon Gos.