Is the Amazon Fresh store the future of shopping?

Amazon has opened a till-less store in the UK called Amazon Fresh. Read on to find out more about a new level of contactless shopping.

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Do you sometimes wish you could just walk into a supermarket, pick up whatever you want and walk out without having to queue at the till? Well, at Amazon Fresh, a new till-less shop in Ealing, West London, you’ll be able to do exactly that.  

Thanks to technology, shoppers at this new store from Amazon can simply grab whatever they want, put it in their bag and leave. They will be automatically billed as they walk out.

Here’s everything you need to know about this innovative concept and what it could mean for the future of shopping.

[top_pitch]

What is Amazon Fresh?

Amazon Fresh is a grocery store launched by Amazon that is 100% reliant on technology.

The store stocks a wide range of products just like other mainstream supermarkets. These include daily essentials and toiletries, fresh fruits and vegetables, ready meals, confectionery and so on.

The main difference is that there are no checkouts.

Instead, technology tracks whatever you put into your basket and then automatically charges you when you leave the store.

How does it work?

The premise is quite simple.

First of all, you need to have an account with Amazon with a debit or a credit card linked to it.

You’ll then have to download Amazon’s shopping app to your smartphone. The app generates a QR code for your Amazon account which you will then scan as you enter the store.

A system of sensors embedded into shelves and the ceiling of the store will detect the value of products you pick up and put into your bag.  

Once you walk out of the store, you’re billed automatically and a receipt is sent by email.

Has the concept been tried before in the UK?

UK supermarkets have been working hard to come up with new ways of helping people avoid queues and reduce contact since the coronavirus pandemic.

Tesco, Asda, Sainsbury’s and M&S have all launched technologies that let you scan items as you shop and pay for them at a self-checkout.

However, Amazon Fresh offers a new level of contactless shopping that is the first of its kind in the UK.

Amazon plans to open as many as 30 such stores across the country. The e-com giant already operates seven Whole Foods Market supermarkets in the UK.

In the US, the Amazon Fresh concept has been in use since 2018. There, the shops are known as Amazon Go.

[middle_pitch]

Is Amazon Fresh a popular idea?

The reception has been relatively positive. A study from Piplsay shows that Brits are excited about this new supermarket concept and optimistic about its future prospects.

The study showed that 43% of people would be excited to see an Amazon Fresh store in their neighbourhood. Of those who’ve visited the London store or similar ones abroad, 86% ranked their experience as either excellent or good.

Furthermore, 54% think that Amazon Fresh stores will be a threat to retail giants like Tesco and Morrisons.

And in the long term, 52% think that despite the growing popularity of online shopping, cash-less and app-driven physical stores like Amazon Fresh will still be a success in the UK.

What impact could Amazon Fresh have?

The threat posed by Amazon Fresh to local supermarket chains might not be immediate. But in time, the concept has the potential to be greatly disruptive to the UK supermarket scene.

The research from Piplsay suggests that the ‘grab and go’ concept could be a hit in the UK. If it proves popular, other players in the UK supermarket scene might have to adopt similar technology. But we’ll have to wait and see.

In the meantime, if you’re looking to save some money on your weekly grocery shop, whether at Amazon Fresh or any other supermarket, check out these 10 money-saving grocery shopping tips.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

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