Microsoft takes aim at Amazon

SAN FRANCISCO: Microsoft Corp is working on technology that would eliminate cashiers and checkout lines from stores, in a nascent challenge to Amazon.com Inc’s automated grocery shop, said six people familiar with the matter.

The software giant was developing systems that track what shoppers add to their carts, said the people.

Microsoft had shown sample technology to global retailers and had had talks with Walmart Inc about a potential collaboration, said three of the people.

Microsoft’s technology aims to help retailers keep pace with Amazon Go, a highly automated store that opened to the public in Seattle in January.

Amazon customers scan their smartphones at a turnstile to enter. Cameras and sensors identify what they remove from the shelves. When customers are finished shopping, they simply leave the store and Amazon bills their credit cards on file.

Amazon Go, which will soon open in Chicago and San Francisco, has sent rivals scrambling to prepare for a disruption by the world’s biggest online retailer.

For Microsoft, becoming a strategic ally to retailers has meant big business. In addition to developing retail technologies, it ranks No. 2 behind Amazon in selling cloud services that are key to running e-commerce sites.

It is not clear how soon Microsoft would bring an automated checkout service to market, if at all, or whether its technology would be the answer retailers are looking for.

“This is the future of checking out for convenience and grocery stores,” said Gene Munster, head of research at Loup Ventures.

The venture capital firm estimates the United States market for automated checkout is worth US$50 billion (RM199.5 billion).