Amazon (NASDAQ:AMZN) could be developing augmented reality (or AR) features for its own chain of homewares stores, according to The New York Times. The report, which cites a source “briefed in the discussions,” indicates that shoppers at Amazon’s brick-and-mortar homewares stores could use devices or apps to “project” home furnishings into digital images of their actual living rooms.
This idea isn’t really new. Back in 2013, IKEA launched an AR app which let customers project furniture into their living rooms via a smartphone camera. Last year, home improvement retailerLowe’s (NYSE:LOW) installed Microsoft’s (NASDAQ:MSFT) HoloLens mixed reality headset at select stores to let shoppers design virtual rooms.
However, Amazon’s AR plans coincide with its recent moves into the brick-and-mortar space with test bookstores, grocery stores, and now rumored homewares stores. Let’s see what that push means for Amazon, and how it could boost demand for Microsoft’s HoloLens and holographic apps.
What is Amazon up to?
Amazon’s brick-and-mortar expansion might seem counterproductive, since its online marketplace is forcing many brick-and-mortar retailers to shutter stores and invest more heavily in e-commerce. However, Wal-Mart (NYSE:WMT) has proven that some customers still prefer placing orders online and picking them up immediately to avoid wait times and shipping fees.
To cut overhead costs, Amazon’s grocery store model uses a “just walk out” system called Amazon Go. The store tracks the items taken by the customer and charges their Amazon accounts once they walk out — eliminating the need for checkout lines and cashiers. Its bookstores offer special discounts to Prime members, and offers self-checkout via the Amazon app.
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Source: The Motley Fool