Dive Brief:
- Amazon will expand its suburban Go c-store concept by opening a new location in Frederickson, Washington, according to an emailed statement.
- The store will be Amazon’s second suburban Go location in Washington. The first — marking the debut of Amazon’s suburban Go format — opened in Mill Creek, Washington last January.
- The retailer’s newest suburban Go store will be the fourth of its kind to open in a matter of months. Amazon debuted suburban Go stores in Whittier, Torrance and Woodland Hills, California, last September, November and December, respectively.
Dive Insight:
Amazon’s 31st Go store coincides with the retailer pausing the rollout of its Fresh grocery stores as it figures out how to better differentiate and improve its economics, CEO Andy Jassy said during Amazon’s earnings call Feb. 2.
It remains unknown how or if Amazon pausing the rollout of its Fresh stores will impact its Go convenience stores.
Amazon’s CFO Brian Olsavsky said in the earnings call that the retailer recorded a $720 million impairment charge in the fourth quarter, with Amazon Go and Amazon Fresh accounting for the bulk of that amount. Olsavsky noted that Amazon decided to close some stores with low growth potential, but did not say how many will shut down.
Amazon reported a 6% rise in physical store sales during Q4, according to its earnings report.
A spokesperson from Amazon declined to comment on exactly when the store in Frederickson will open, only noting that it is “coming soon.”
Like the other suburban Amazon Go stores, the 2,500 square-foot location will offer a broader selection of grab-and-go food and drinks, including a wide range of beer, wine, spirits and everyday essentials. It also features Amazon Go’s made-to-order kitchen, which offers freshly prepared food, including breakfast items, hot and cold deli sandwiches, salads and wraps. It will also offer a variety of specialty beverages and on-tap coffee, kombucha and soda, as well as a Pinkberry fro-yo station.
Amazon Go c-stores use the company’s Just Walk Out technology, which automatically detects when products are taken from or returned to shelves and keeps track of them in a virtual cart. When customers are done shopping, they can leave the store without checking out and receive a receipt while the purchase is charged to their Amazon account.
Amazon currently operates 30 Amazon Go c-stores in the U.S. Besides its suburban stores in California and Washington, its urban locations are scattered throughout San Francisco, Seattle, Chicago and New York City.
