Amazon Opens Cashierless Supermarket In Latest Grocery Push - 2/28/20

From the Simplr studios in San Francisco, this is your daily briefing.  

Introduction

This is Today in Five with Madison Huffman, for today, Friday, February 28th. Here are today’s headlines in digital disruption.

Amazon has debuted Amazon Go grocery this week, a cashier-less grocery store that further pushes the giant into the industry.  

First, here are the latest headlines.

Disney CEO Iger Steps Down

Disney CEO Bog Iger has stepped down. The change will take effect immediately but will be staying on as the company’s executive chairman, Disney announced. Iger, who pushed back his retirement several times, will continue overseeing creative projects through 2021. In a statement, he said now was, “the optimal time,” to transition following the company’s launch of its direct-to-consumer business and completes its integration of 21st Century Fox.

Target's Focus on E-Commerce "Paying Off"

A new report from eMarketer revealed that Target’s focus on building its e-commerce operations is paying off. The company, who used to rank number 11 in the U.S. in e-commerce sales, is now poised to take the number 8 spot. According to eMarketer, Target’s e-commerce business will jump 24 percent in 2020 to $8.34 billion dollars and its share of the U.S. market will grow to 1.2 percent. Target will also inch past Costco this year, with only $10 million in online sales separating the two companies.

Google Driving E-Commerce Sales Better Than Facebook and Instagram

According to a new study, Google is a better driver of e-commerce sales than social networks Facebook and Instagram. The study suggested that the search giant reaches consumers who are more intent on making a purchase. Google’s ability to drive better sales and web traffic indicates a key difference in how consumers use the respective platforms. Google and Facebook, which owns Instagram, have boosted their e-commerce efforts over the past few years to address growing competition with Amazon, which has a rapidly growing digital advertising business and is the first place many consumers go to find a product.  

Amazon Opens Cashierless Supermarket In Latest Grocery Push

Amazon rolled out its checkout-free Go technology in a large grocery store and plans to license the cashier-less system to other retailers. Amazon Go Grocery opened on Tuesday and uses an array of cameras, shelf sensors, and software to allow shoppers to pick up items and walk out without stopping to pay or scan merchandise. Accounts are automatically charged through a smartphone app once shoppers leave the store.  

The company has operated a string of Go-branded convenience stores since 2018, but improvements in camera technology and its use of algorithms have allowed it to build a larger-scale format. Amazon hopes the grocery store will serve as a showcase for its technology as it seeks to sell its systems to other businesses.

Amazon’s cashier-less stores have inspired other retailers and tech startups to explore similar technology, including models that feature smart shopping carts. Some startups, including Grabango Co, have signed deals with regional grocery chains.  

Go Grocery is part of a broader expansion of Amazon’s presence in grocery. Aside from the more than 500 Whole Foods stores, the company recently confirmed plans to start a separate grocery chain with human cashiers, with the first store planned for the Los Angeles area this year. Grocery delivery has also been a growing focus. Amazon has used Whole Foods locations to deliver food to customers, and the company also offers delivery in some areas through its Amazon Fresh unit.  

As Amazon has gained a strong foothold in the industry, Walmart and Target have also ramped up their grocery delivery efforts. Walmart this month said online grocery sales helped boost its U.S. e-commerce revenue by 35 percent in the fourth quarter.  

Closing

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Thanks for listening to this latest episode of Today In Five. We’ll see you tomorrow.