- Loup Ventures thinks that Amazon (AMZN +0.5%) could be sitting on the "operating system of automated retail" with the Amazon Go concept, along with AWS (Amazon Web Services) and FBA (Fulfillment by Amazon) at the ready.
- In one of the more riveting pieces on Amazon's future disruption on retail, analyst Andrew Murphy explains why the Seattle e-commerce giant is in the pole position in the $50B (market potential) automated retail industry.
- Murphy on AMZN: "Just as Amazon did with FBA and, to a lesser extent, AWS, Amazon is initially building a backend infrastructure for its own use with Amazon Go. And just like FBA and AWS, that infrastructure gets more valuable as it scales. The Amazon Go backend gives the company a trojan horse into the brick and mortar retail space, clearly an area of interest given the Whole Foods acquisition. Perhaps the more critical question is why a retailer would work with Amazon? Our answer is the same as it is with all of Amazon’s best offerings: convenience. Retailers would have a turnkey solution for automated retail. While larger stores like Walmart and Target may not want to use the technology for competitive reasons, branded retail stores (like a Nike store) may be a fit if Amazon can create a product that helps save the retailer labor and processing costs."
- Related stocks: WMT, TGT, NKE, GPS, LB, SPLS, FL, FINL, ANF, EXPR, URBN, ULTA, FIVE.
- Now read: Financial Freedom: Review Of Walmart's Recent Earnings News And 10 Retirement Mistakes To Avoid
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.
Original article