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With the enormous technological changes in the digital world, traditional retail has also been upgraded. Despite the increase in e-commerce and mobile, the physical channel continues to play a major role in consumer experience. Retailers use more technologies to stay afloat. Cashierless technology is one of the latest conversation trends.
In late 2016, Amazon launched its first cashierless Amazon Go store. A mix of cameras, machine vision, and IoT was used in the store to track shoppers throughout the store. It automatically charges them for the items they collect and eliminates the need for cashiers. Since the launch of the Amazon Go store, all the other retailers have been forced to contend with the convenience store of the future. Last week, a report from RBC Capital Markets estimated that every Amazon Go store currently produces between $1.1 million and $2 million annually.
The growth of Amazon Go cashless stores now pressurizes traditional retailers to eliminate typical checkouts and add fully automated walks in and out of stores. By understanding this pressure, technology startups have been involved in helping retailers speed up adoption.
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Grabango is a group of startups aimed at helping retailers deploy cashierless technology in stores. Grabango, a California- based payment startup, raised $ 18 million in series A funding to expand its cashless retailer checkout technology platform. It is currently working with four large retailers, including three grocery stores and a convenience store. AVA Retail, Zippin, Standard Cognition, and FutureProof Retail are amongst others. AVA Retail also works with six retailers worldwide on cashless technology pilots.
Despite Amazon’s pressure, retail is still not at the dawn of cashless checkout. The increased cost of implementation makes some retailers from adding cashless checkouts. The key challenge of implementing the cashierless store is the expensive cameras.
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By receiving a massive call from Amazon, the retailers are thinking about how they can compete and survive in the upcoming competitive cashierless stores. Cashierless retail is a long game, as it will eventually become a survival move for traditional retailers.
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