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Amazon (AMZN) Discards Cashierless Technology at Grocery Stores
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Amazon (AMZN - Free Report) , which has pioneered the cashierless technology, is now looking forward to setting its grocery stores free from the technology in the United States.
The company has been experiencing solid momentum with the said technology by delivering an enhanced shopping experience to customers across its various stores, which, in turn, has been aiding the performance of its physical stores.
However, it now strives to dive deep into further technical innovations for its offline grocery retail business by pulling the plug on its Just Walk Out system.
Amazon intends to deepen its focus on the smart trolley technology of the Dash Cart system that was launched in 2020 to revamp its physical grocery stores.
Notably, Dash Cart tracks the items that shoppers put in their trolleys. It provides customers with weight and real-time receipt information, which is important for any shopper to have a check on while shopping.
The system leverages ceiling-mounted cameras and shelf sensors backed by algorithms. Customers are required to hold the items with bar codes in front of the scanners and use a touchscreen in case of items without bar codes.
It allows shoppers to leave stores through special lanes, wherein their cards are charged.
Reportedly, customers enjoyed skipping the checkout line banking on the cashierless technology while shopping but they could not track their receipts and the amount that they saved, which shoppers find concerning. Under the Just Walk Out system, receipts get generated digitally after checking out.
Nevertheless, the Dash Cart system enables shoppers to track their spending in real time while shopping. Hence, the system is expected to deliver a better grocery shopping experience at Amazon grocery stores, which, in turn, will drive the company’s physical store sales.
Deepening Retail Focus
Amazon’s latest move bodes well for its strengthening retail strategies, which include bolstering its online and offline retail presence, boosting distribution channels, and accelerating delivery. These have been instilling investors’ confidence in the stock.
Notably, Amazon has returned 18.9% on a year-to-date basis, outperforming the industry’s rally of 11.1%.
Apart from the grocery business, the growing traction across Amazon Go, which is a cashierless store of the company, is a major positive. According to recent reports, Amazon Go stores will continue to use the Just Walk Out technology, which has been a major success.
In addition to the offline business, the e-commerce giant’s huge success with its Prime program remains a plus. Prime’s customer-friendly offers and cashback benefits, strengthening delivery and shipment services, expanding music and video content, and a robust loyalty system are constantly driving growth in its online retail business.
We believe that strengthening the offline and online retail businesses will continue to aid Amazon’s overall financial performance in the days ahead.
For 2024 sales, the Zacks Consensus Estimate is pegged at $641.36 billion, indicating year-over-year growth of 11.6%.
The consensus estimate for 2024 earnings is pinned at $4.08 per share, indicating year-over-year growth of 40.7%. The figure has moved 0.5% north in the past 30 days.
Image: Bigstock
Amazon (AMZN) Discards Cashierless Technology at Grocery Stores
Amazon (AMZN - Free Report) , which has pioneered the cashierless technology, is now looking forward to setting its grocery stores free from the technology in the United States.
The company has been experiencing solid momentum with the said technology by delivering an enhanced shopping experience to customers across its various stores, which, in turn, has been aiding the performance of its physical stores.
However, it now strives to dive deep into further technical innovations for its offline grocery retail business by pulling the plug on its Just Walk Out system.
Amazon intends to deepen its focus on the smart trolley technology of the Dash Cart system that was launched in 2020 to revamp its physical grocery stores.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Dash Cart to Deliver Better Shopping Experience
Notably, Dash Cart tracks the items that shoppers put in their trolleys. It provides customers with weight and real-time receipt information, which is important for any shopper to have a check on while shopping.
The system leverages ceiling-mounted cameras and shelf sensors backed by algorithms. Customers are required to hold the items with bar codes in front of the scanners and use a touchscreen in case of items without bar codes.
It allows shoppers to leave stores through special lanes, wherein their cards are charged.
Reportedly, customers enjoyed skipping the checkout line banking on the cashierless technology while shopping but they could not track their receipts and the amount that they saved, which shoppers find concerning. Under the Just Walk Out system, receipts get generated digitally after checking out.
Nevertheless, the Dash Cart system enables shoppers to track their spending in real time while shopping. Hence, the system is expected to deliver a better grocery shopping experience at Amazon grocery stores, which, in turn, will drive the company’s physical store sales.
Deepening Retail Focus
Amazon’s latest move bodes well for its strengthening retail strategies, which include bolstering its online and offline retail presence, boosting distribution channels, and accelerating delivery. These have been instilling investors’ confidence in the stock.
Notably, Amazon has returned 18.9% on a year-to-date basis, outperforming the industry’s rally of 11.1%.
Apart from the grocery business, the growing traction across Amazon Go, which is a cashierless store of the company, is a major positive. According to recent reports, Amazon Go stores will continue to use the Just Walk Out technology, which has been a major success.
In addition to the offline business, the e-commerce giant’s huge success with its Prime program remains a plus. Prime’s customer-friendly offers and cashback benefits, strengthening delivery and shipment services, expanding music and video content, and a robust loyalty system are constantly driving growth in its online retail business.
We believe that strengthening the offline and online retail businesses will continue to aid Amazon’s overall financial performance in the days ahead.
For 2024 sales, the Zacks Consensus Estimate is pegged at $641.36 billion, indicating year-over-year growth of 11.6%.
The consensus estimate for 2024 earnings is pinned at $4.08 per share, indicating year-over-year growth of 40.7%. The figure has moved 0.5% north in the past 30 days.
Zacks Rank & Other Key Picks
Currently, Amazon carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader retail-wholesale sector are The Gap , eBay (EBAY - Free Report) and Fastenal (FAST - Free Report) . While GPS currently sports a Zacks Rank #1 (Strong Buy), EBAY and FAST carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Gap has gained 27.3% in the year-to-date period. The long-term earnings growth rate for GPS is currently estimated at 12%.
eBay shares have gained 18.9% in the year-to-date period. EBAY’s long-term earnings growth rate is currently projected at 6.71%.
Fastenal has gained 17.8% in the year-to-date period. The long-term earnings growth rate for FAST is currently anticipated at 9%.