Convenience Stores Shouldn’t Fear Amazon Go
Brick-and-mortar retail is still faster than the Internet to quench one’s thirst.
Jan 14, 2019
NEW YORK CITY – Will checkout-free retail diminish convenience stores? Jeff Lenard, NACS vice president of strategic industry initiatives, recently told the Daily Gazette that “brick-and-mortar is still faster than the Internet to quench a thirst or feed a hunger.”
While Amazon Go plans to have 3,000 cashier-free stores opened by 2021, an analyst’s note earlier this month recommended the company add gas stations. “The movement of Amazon and all the other entrants into convenience … shows the value of convenience [stores],” Lenard said.
He pointed to Amazon’s “cool technology” as part of the draw of the checkout-free c-stores, noting the limited hours, weekend closures at some locations and unavailability of age-restricted products. Lenard also cited Amazon Go’s quick-service restaurant factor, with a heavy emphasis on fresh-prepared foods.
RBC Capital Markets agreed, noting Amazon Go threatens “quick eateries” in urban areas more than suburban c-stores. Amazon’s technology does show “that things are changing and that retail is alive and well,” Lenard said, adding that “boring retail will be in trouble. … Every other retailer will succeed by making the shopping experience fast, interesting and convenient.”
