Amazon To Bring Cashierless 'Go' Stores To Airports Soon

Amazon.com, Inc. (NASDAQ:AMZN) has no plans to stop anywhere down the line. The shopping season has arrived and the online giant is all geared up with new expansion plans. The company now intends to bring its checkout-free Amazon Gogrocery stores to top U.S. airports, according to reports.

As of now, Amazon is expected to bring its Go Stores to Los Angeles and San Jose International Airports.

This news is in sync with the e-commerce giant’s strategy of aggressive expansion into the retail space. Just a week back, it was reported that Amazon intends to test its cashierless technology to bigger stores.

This dominance of Amazon can be attributed to its vast e-commerce platform, expanding online product portfolio and strengthening fast delivery services.

Stock Performance

Amazon is one of the largest online retailers in the world, with extensive operations in North America. Although its primary product line was of books, it has diversified into a host of other product categories and now wants to establish a global presence.

Shares of Amazon have outperformed its industry on a year-to-date basis. The stock has gained 39.3% compared with the industry’s growth of 1.5% in the said period.

Amazon Go Expansion Continues

Amazon brought the concept of cashierless store in the beginning of this year by setting up the first one in Seattle. Since then, the company has established quite a few Amazon Go stores that stock ready-to-eat food items like salads, sandwiches, wraps, quick eatables, grocery items along with Amazon meal kits.

With the cashierless concept, the company strives to enhance the shopping experience of customers by letting them pay for the items shopped from Amazon Go after reaching home via their smartphones.

The latest plan of the company is likely to further heat up competition with retailers like Walmart (NYSE:WMT), Target (NYSE:TGT) and Kroger (NYSE:KR), which are already reeling under its influence.

Per a report from Statista, revenues in the U.S. food and beverages market are expected to witness a CAGR of 12.5% between 2018 and 2022, and reach $25.98 billion by 2022. Further, revenues in this particular market are projected at $16.2 billion for 2018.

All these endeavors are likely to aid the company in rapidly penetrating the grocery and ready- to-eat food retail space. Furthermore, these efforts will strengthen Amazon’s physical presence, which will help it address the traditional section of the population that still hesitates to shop online.

Zacks Rank & Stocks to Consider

Amazon currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include AMETEK, Inc. (NYSE:AME) , QuinStreet, Inc. (NASDAQ:QNST) and Stamps.com Inc. (NASDAQ:STMP) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for AMETEK, QuinStreet and Stamps.com is currently pegged at 11.18%, 25% and 15%, respectively.

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