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Amazon’s Cashless Store Veers Back Toward Cash

National  + Weekender  | 

A year ago, Amazon launched its high-tech Go convenience store concept. With no cashiers on hand, shoppers enter the store with an app linking to a credit card or Amazon account, pull items off the shelf, pay for their selections and walk out.

The newest Amazon Go store, which opened at Brookfield Place in Lower Manhattan earlier this month, is also the most old-fashioned. It accepts cash.

Facing a backlash from those who believe cashless stores discriminate against the poor, Amazon confirmed last month that it was working on a way to accept dollar bills and coins, the Associated Press reported.

The solution Amazon devised looks like this: store employees swipe shoppers who want to pay by cash through the turnstile entrance. For customers who intend to pay by cash, an employee scans each item they’ve selected with a mobile device, takes the cash, gives them their change from a cash drawer and hands them a receipt.

The Brookfield Place location, the first in New York City, is thus far the only one of the 12 Amazon Go stores equipped with this option. Exactly how the stores accept cash payments could be subject to change, Amazon’s Cameron James told the AP.

“This is how we’re starting,” James said. “We’re going to learn from customers on what works and what doesn’t work and then iterate and improve it over time.”

Amazon’s move comes as opposition to cashless stores—which also include quick-serve chains such as Sweetgreen—has begun turning into legislation that prohibits these stores. New Jersey Gov. Phil Murphy recently signed a bill outlawing cashless stores in the state, and the city of Philadelphia has enacted similar legislation, becoming the first major city to do so. New York City, San Francisco and Washington, D.C. also have such measures in the works.

As for Amazon Go’s Brookfield Place location, it’s not clear how many shoppers will end up paying by cash, given its surroundings and potential customer base. The AP described Brookfield Place as “a high-end shopping mall and office complex that houses a Gucci store and office workers from banks and credit card companies.”

For comments, questions or concerns, please contact Paul Bubny

Connect

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).