Yahoo TV

Amazon is RAMPING UP ITS checkout-free stores. It'll open its first Amazon Go Grocery store Tuesday in Seattle, a supermarket that's four times bigger than the existing Amazon Go stores. The new concept targets shoppers in residential neighborhoods unlike Go, which caters to office workers.

As with Amazon Go seen here, shoppers scan their Amazon Go smartphone app upon walking in, grab what they want, then walk out. The store's ceiling cameras and shelf weight censors confirm what customers put into their carts. Their credit card gets billed upon leaving the store.

The larger format reflects the online retailer's ambitions of capturing more of their customers' weekly spending through groceries, a move that'll put it up against major supermarket operators like Kroger and Albertsons. It has long been rumored to be working on grocery stores that cater to customers with more diverse tastes than what's offered at the upscale Whole Foods chain it bought three years ago.

Amazon Go Grocery is THE COMPANY'S SMALLER VERSION OF THE CONCEPT THATS NOT a full-fledged supermarket. It sells fresh cold cuts. But it doesn't offer a deli or seafood counter.

It's unclear how much Amazon will save on labor costs by not employing cashiers since it has to invest a lot in technology to compete in an industry characterized by low profit margins.