retail news in context, analysis with attitude

Seeking Alpha reports that “RBC Capital sees huge potential for Amazon's convenience store roll-out. The cashierless Amazon Go store base is forecast by RBC to bring in 50% more revenue on average than a normal c-store at $1.5M per year. If Amazon follows through on a plan to open 3K stores by 2021, the RBC estimate suggests annual revenue of as much as $4.5B for the company from the concept.”
KC's View:
I don’t always put a lot of stock - pun intended - in these sorts of prognostications, mostly because I always wonder whether the analyzing company is somehow being self-serving. But … one of the things that I found most interesting about this particular analysis was when it listed companies that could be affected by an Amazon Go rollout. That list included Circle K, Walgreens, Grubhub, 7-Eleven, Shell, Kum & Go, Murphy USA, TravelCenters of America, Uber Eat, Casey's General Stores, McDonald's, Chipotle, Subway, Dunkin' Donuts and even Starbucks.

In a word, Yikes! Even if they’re only half-right…