Amazon Go’s automated London stores will be a retail game-changer, says e-commerce delivery expert ParcelHero, after news emerged that the online retail giant is reportedly searching for shop space in central London.
Amazon’s plan to move into UK physical brick and mortar stores was predicted last October by e-commerce logistics expert ParcelHero. Now the Sunday Times has revealed the e-commerce giant is looking at around two dozen London premises ready for the launch of its checkout-free UK grocery chain this year, creating what ParcelHero predicts will be a High Street revolution.
ParcelHero’s head of consumer research, David Jinks MILT, says: "From the moment Amazon launched its ‘Project Como’ prototype checkout-less store in Seattle last autumn, we were certain that Amazon would seek to pioneer the service in the UK.
"London has been a testing ground for many of Amazon’s big leap forwards, such as the launch of Amazon Logistics which enabled one-hour delivery slots, etc. Its scale and population size makes the capital a perfect fit for a chain of such stores.
"Amazon’s Go format stores mean shoppers will be able to pay for products using their smart phones without having to use any kind of till – even the much-loathed automatic variety."
Jinks says Amazon Go’s arrival will have a profound impact on our High Streets: "Our new report, "2030 - The Death of the High Street", released last month, highlights not only the way e-commerce will impact on our town centre stores, but also predicts the spread of Amazon’s pioneering Go in the UK.
"Home shopping will wipe out over 50% of town centre stores by 2030, and brick and mortar supermarkets' market share will slump from 42% to 24% by 2030 with the end of the traditional weekly ‘big grocery shop’ - and that’s not enough to remain viable.
"Superstores will rapidly become white elephant inconvenience stores; but, in contrast, automated convenience stores will become a boom market, as shoppers use them to supplement their regular online orders for fresh produce."
Concludes Jinks: "Our report shows there can be a future for the High Street IF people return to live there, creating an economy and infrastructure that doesn’t suddenly end at 6pm. Otherwise High Streets will become ghost towns. The report says 24-hour automated convenience stores will be needed to ensure a returning High Street population’s needs are met.
"Of course, this presents a threat to traditional shop jobs, but these have been endangered ever since the arrival of e-commerce. At least Amazon Go presents a model where some physical shops can still survive on the High Street, without the burden of till-trained staff wages as well as rates and rents."