Amazon Go's productivity is “exceptionally high”

According to some American analysts, the first Amazon Go outlets are scoring remarkably high in terms of turnover per surface and stock rotation. Could this be a real money machine for Amazon?

Enormous turnover per square metre

With an annual turnover of 25,790 euros per square metre, the Amazon Go stores are doing better than any other retailer’s except for Apple and some speciality stores. This is the opinion of Brick Meets Click’s analysts, who spent several days in the first checkout-free convenience store in Seattle. The 180 square metre store generates some fifty stock rotations per year: four to five times the average in retail. The concept maximises customer flow-through and makes far more efficient use of inventory and surface, says the report. In addition, these numbers are likely to increase as the concept becomes better known among consumers and Amazon refines its concept.

Another marketing consultant called inMarket analysed shoppers’ behaviour at Amazon Go in Seattle and Chicago over two months. Unsurprisingly, peak hours are lunchtime (between 12:00 and 14:00) and between 8:00 and 9:00 on week days. Wednesday is the busiest day. Unlike traditional supermarkets, the stores have fewer customers during the weekend. Amazon has therefore decided not to keep all stores open during the weekend.

More restaurant than supermarket

The concept is not a true competitor for a supermarket according to the marketing experts: this formula is closer to ‘fast casual’ restaurants and convenience stores. Customer loyalty appears quite high: 44 % visited the store more than once during the research period. An average visit did take 27 minutes, which is remarkably high if you take into account that the store is quite small and shoppers don’t have to queue to pay. A possible explanation is that customers are taking their time to explore the product range. Also, they can consume ready-made products on the spot in a small sitting area.

Amazon currently holds six outlets: four in Seattle, one in Chicago and last week another one opened in San Francisco. Additional openings in Chicago, San Francisco and New York are scheduled for the near future. The formula is also actively looking for retail buildings in the UK. According to Bloomberg, the retailer wants to have ten locations by the end of this year, fifty next year and three thousand by 2021.