Amazon continues its steady ascent with the cashierless technology, revolutionizing the retail sector and enhancing customer experience. Year-to-date, the stock has surged by 19.3%, a testament to its unwavering success.
This latest move entails the deployment of the technology to an array of third-party stores this year, including stadium shops and Hudson News outlets at airports.
Embracing Innovation
Amazon’s commitment to expanding its cashierless technology is a strategic step forward in the company’s quest to provide unparalleled convenience to shoppers.
With this groundbreaking technology, customers can bid farewell to long checkout lines and make payments effortlessly through their smartphones, from any corner of the store.
The recent introduction of the technology at hospital stores, such as St. Joseph’s/Candler Hospital in Savannah, GA, further underscores Amazon’s innovative endeavors.
Moreover, the collaboration with Panera Bread to implement Amazon One across several Panera cafes is a noteworthy development.
The robust network of Amazon Go stores, where the technology first debuted, shines brightly. Currently, the U.S. boasts 22 Amazon Go stores, with seven nestled in Washington state.
Driving Retail Evolution
Amazon is poised to revolutionize the landscape of retail with its cashierless technology, forging a path to success in third-party physical stores.
This strategic move is anticipated to bolster Amazon’s footprint in the retail domain and strengthen its position in the burgeoning self-checkout systems market.
Market analysts forecast substantial growth in the global self-checkout systems market. Predictions indicate a surge from $5.64 billion in 2024 to a whopping $18.01 billion by 2032, reflecting a remarkable CAGR of 15.6%.
According to a report by Grand View Research, the U.S. self-checkout systems market is projected to witness a CAGR of 11.9% from 2023 to 2030.
A Bright Future
The exponential expansion of Amazon’s cashierless technology is set to propel the company’s retail prospects and captivate investors, steering them towards a positive outlook.
Market analysts have pegged Amazon’s 2024 revenue estimate at $641.45 billion, indicating a robust year-over-year growth rate of 11.6%.
The 2024 EPS consensus estimate stands at $4.08 per share, showcasing a substantial 40.7% increase year-over-year.
Stock Analysis and Recommendations
Amazon currently holds a Zacks Rank #3 (Hold).
Noteworthy stocks in the retail-wholesale sector include American Eagle Outfitters (AEO), The Gap (GPS), and JD.com (JD), which all sport a Zacks Rank #1 (Strong Buy).
American Eagle Outfitters, with a 6.9% gain year-to-date, presents a promising long-term earnings growth rate of 12.53%.
Meanwhile, The Gap has seen a 2.8% increase year-to-date, with a long-term earnings growth rate projected at 12%.
JD.com, though experiencing a 10.5% loss year-to-date, projects a substantial long-term earnings growth rate of 43.75%.
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