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Amazon's grocery store of the future

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Groceries the Amazon way 

Happy Birthday, Amazon Fresh! This month marks the one-year anniversary of the opening of Amazon.com Inc.'s physical grocery store.

Today, there are 18 locations clustered in and around southern California,  Chicago, Seattle and Washington. Amazon has confirmed that seven additional locations are in the works. Meanwhile, news reports and store permitting documents suggest that the company is plugging away on dozens more.

That may not be a breakneck expansion pace by the standards of the traditional grocery industry, but it does represent Amazon's most aggressive push yet into the world of offline shopping. The company's other brick-and-mortar exploits—a bookstore, the cashierless Amazon Go convenience store, and the Amazon 4-Star potpourri of  home goods and electronics—all had opened only a few outlets a year after their debut.

Amazon's ambitions in physical retail have long been inscrutable. The company has a total of about 100 Amazon-branded stores, as well as some 500 Whole Foods Market locations. Future projects might involve a discount chain or pharmacies. Even department stores are a possibility. But right now, grocery is clearly the priority.

So last week I went to Bellevue, a few miles east of Amazon's Seattle headquarters, to shop at an Amazon Fresh. The location is one of two stores open so far with Amazon's Just Walk Out shopping technology—and likely represents the future of grocery stores as Amazon envisions it. 

Inside the sleek, modern store, the selection felt a lot like that of any mid-sized grocery chain—a combination of the company's private label products (Amazon brands and Whole Foods' 365) alongside local staples and national names. Unlike at Whole Foods, there was plenty of Pepsi. 

I made my selections, and then, as promised, I just walked out. The company accomplishes this feat with hundreds of ceiling-mounted cameras, backed up by grocery shelves that double as scales. The aesthetic effect of this can be weirdly uncluttered displays of items like single-serve yogurt or packaged paper plates, and some near-empty shelves.

A few hours after I left, the receipt for my items arrived by email. That's different than my experience at the pocket-sized Amazon Go convenience stores in Seattle, which tend to send a receipt a few minutes after you walk out. People familiar with the Just Walk Out technology say delays can be an indication that footage was flagged for human review to make sure the software correctly logged what was taken off the shelf. An Amazon spokesperson declined to explain the delay, and said shoppers across stores using Just Walk Out technology receive receipts within a few hours.

How soon is Just Walk Out tech coming to a grocery store near you? It's still hard to say. The company hasn't yet articulated a public vision for its physical shopping teams. But it did hire Tony Hoggett, an executive from British grocer Tesco, to run its physical stores starting next year. After that, it's possible the company could expand its push to make the future of grocery stores (or pharmacies, or department stores, or all of the above) cashier-free. Matt Day in Seattle

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