Microsoft plan to emulate Amazon Go with 'cashierless' Walmart collaboration

Retail system would track shoppers as they load-up their trolleys

Microsoft is looking to develop a retail system similar to Amazon Go that would would eliminate check-out queues at mainstream supermarkets.

According to Reuters, Microsoft has held talks with Asda owner Walmart, as well as other retailers around the world, about a potential collaboration.

Details are sketchy, but the system, claim Reuters' anonymous sources, tracks shoppers as they shop, tallying what they add to their baskets or trolleys.

The idea of such systems that can do away with checkouts and cashiers isn't new. Past approaches have entailed 'supertags' on items, RFID tags that are activated when the shopper exits, totting up their bill and taking payment automatically.

However, even today RFID tags remain too expensive for many low-value, low-margin items, making it too costly.

Retailers are increasingly nervous about Amazon Go - not to mention Amazon's acquisition of supermarket chain Whole Foods. Microsoft's aim is to drive into retail systems with an initiative that it can offer to retail chains concerned about the competitive threat posed by Amazon.

The first Amazon Go was opened in Seattle, Washington State in January this year as part of the online retailer's plan to expand into traditional bricks-and-mortar retail.

The shop, which is 1800-square-foot in size, is based at one of Amazon's office buildings. It offers a range of products, including everyday grocery items from meat to beer.

To shop in Amazon Go, customers must access the Amazon Go smartphone app, into which they scan their items. There's a turnstile at the entrance where customers identify themselves.

When a customer has finished shopping, they just have to walk back through the security gates with no queueing, while payment is taken automatically via their Amazon account.

After the store in Seattle, Amazon is planning on opening Amazon Go branches in Chicago and San Francisco. If the chain proves successful in the US, the UK will almost certainly be high up the list for international expansion.

Amazon acquired Whole Foods, meanwhile, in June 2017 in a $13.7 billion deal. While Amazon it reported to be working secretively on its development plans with Whole Foods, it has introduced special deals for Amazon Prime members, such as big discounts on fresh produce.

In the UK, Whole Foods has seven stores all based in London after closing two stores outside the capital shortly after the acquisition.