Amazon has managed to cut the cost of its ‘Just Walk Out’ technology by a whopping 96% since 2017. That paves the way for a wider rollout.
Boosting profitability
According to Business Insider, the e-commerce giant plans to cut costs even more in the coming years. The company wants to further increase the turnover and profitability of the stores and is also working on some partnerships with third parties.
Currently, the operating costs of a cashless store of 1,000 m² would only amount to 159,000 dollars (140,000 euros) per year. That is 96% less than four years ago, when it cost Amazon 4 million dollars (3.52 million euros) to keep such a store open for a year. The amounts mentioned do not take into account marketing costs or merchandising fees.
Amazon has just opened its seventh till-less Amazon Fresh supermarket in the UK, in East Sheen in south-west London. According to the latest rumours, the eighth will be in Chingford, Essex. Moreover, the retailer wants to open hundreds of physical stores in the coming years, not only in the UK but also in European countries such as Germany, Spain and Italy.
