Microsoft Corporation (MSFT) to Take on Amazon Go's Checkout Technology

Microsoft Corporation (NASDAQ:MSFT) has a response for Amazon’s futuristic retail concept. The tech behemoth has been working on similar software and programs, and signs point to it being marketed to retailers.

Reuters has the scoop on Microsoft’s progress.

Microsoft Corp (MSFT.O) is working on technology that would eliminate cashiers and checkout lines from stores, in a nascent challenge to Amazon.com Inc’s (AMZN.O) automated grocery shop, six people familiar with the matter told Reuters.

The Redmond, Wash.-based software giant is developing systems that track what shoppers add to their carts, the people say. Microsoft has shown sample technology to retailers from around the world and has had talks with Walmart Inc (WMT.N) about a potential collaboration, three of the people said.

The assumption is that Microsoft would look to partner up with existing retailers that want to keep pace with Amazon if its futuristic store concept catches on. Amazon Go stores, which feature a checkout-free experience, are coming to Chicago and San Francisco in the wake of a successful pilot program near the e-commerce behemoth’s home base in Seattle.

Gene Munster, head of research at Loup Ventures, estimates that the market for automated checkout in the US alone is worth $50 billion. “This is the future of checking out for convenience and grocery stores,” he said.

Microsoft Corporation shares rose $0.05 (+0.05%) in premarket trading Thursday. Year-to-date, MSFT has gained 18.97%, versus a 4.60% rise in the benchmark S&P 500 index during the same period.

MSFT currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 66 stocks in the Software – Application category.