Amazon was on track to release retail stores this year known as Amazon Go. Multiple problems have caused a large delay with respect to those plans. Amazon’s online grocery business has been lacking. Competitors are starting to catch on with different programs.

Retail Stores

Amazon wants to set itself in the brick and mortar business. To do so, it has been in the works developing stores known as Amazon Go. These stores are designed to allow cashier free checkout lines. That means customers can order the product online or through an app, then walk right out with the item.

The goal is to be more friendly for consumers compared to other stores. For instance, consumers could pick up a sub and have their account charged automatically. On Monday, the Wall Street Journal noted a delay in the opening of the stores.

The reason cited was for technological reasons. That is because Amazon Go stores are expected to have sensors placed in them. Such sensors would be responsible for making sure that items are scanned out appropriately. The delay is mainly due to problems with the sensors themselves.

The sensors have failed to accurately check people out in the store. This happens when there are 20 or more consumers in the store all at the same time. Secondly, there might be a need to have some workers monitor the sensors themselves.

A lot of these issues must be resolved, but it doesn’t look like the stores will be ready for an early 2017 opening. If it eventually goes as planned, Amazon expects to open at least 2,000 brick and mortar retail locations.

Online Grocery

The different direction that Amazon has been taking with respect to moving to some brick and mortar stores has to do with a problem in the online grocery space. Amazon has done well with thousands of other products on its Amazon.com home website. The problem is that online grocery sales have not taken off like the other products have. Amazon has been in the grocery business for more than a decade.

It has done its best to break through the $800 billion grocery industry. A products research firm, known as TABS Analytics, cited that only 4.5% made online grocery purchases in 2016.

That is only slightly higher than the 4.2% seen four years earlier. The Amazon Go, the drive-in grocery kiosk stores, and hybrid stores are all being implemented in hopes of solving this problem.

Competitors

When it comes to the online space in terms of selling many products besides groceries, Amazon is king. The problem is that other competitors have seen success with their grocery store programs.

For example, Walmart has seen massive success with their program. Walmart's approach was to use curbside pickup of online orders. Oddly enough, it has been a good growth driver for the grocery space.

The CEO of Walmart Doug Mcmillion said that sales in the grocery area increased by 27%. Even curbside pickup sales saw a 25% increase year over year in the fourth quarter. Amazon is lagging behind for now. The only way Amazon can combat against Walmart in the grocery space is if it can launch the Amazon Go stores.

What Binary Options Traders Should Watch For

There are a few things that traders should watch for.

The first of which is if the Amazon Go stores are implemented this year. With the delay in place the second half is looking likely. However, another setback in the technology could possibly move the data further along to 2018.

The second item would be the online grocery space. Amazon has to get itself together somehow selling groceries online. Its decline in grocery sales has painted a negative light on the company.

The final item that traders should keep an eye on would be competitors such as Walmart. Walmart has been the king in the grocery space. It should be monitored whether or not the trend continues for Walmart. Amazon will have to get its presence out there within the retail space. It is lagging behind, and it needs to get on board with other competitors if it hopes to take market share.