Self-Checkouts Seek Change of Scenery

Self-checkout vendors IBM and NCR are betting that a change of scenery will give consumers new reasons to use the technology to get them out of stores.
According to a report on the Storefront Backtalk website, the vendors introduced smaller self-checkout systems intended to be deployed away from the front-end of stores.
The IBM AnyPlace Checkout system was being marketed as a means to deliver customer service in the form of smaller lines by positioning the unit in departments such as the deli and bakery.
NCR was pushing the value of the smaller units as being practical for stores including convenience stores, pharmacies and department stores.
The new IBM units, which are roughly half the cost of front-end models, are meant to handle smaller baskets and are wall-mounted. Fredrik Carlegren, IBM’s offering marketing manager for self-service, told Storefront Backtalk, “If you’re looking at a grocery, a few units (could exist) within any particular department.”
Greg Buzek, the president of IHL Group, said the new systems allow “self-checkout to move into other areas where it’s too costly today. We’re talking convenience and drug stores, places where you don’t have the labor savings to justify” the typical self-checkout system.
Discussion Question: What are your thoughts on the prospects of smaller self-checkout systems? Do you see greater opportunities in stores that have not typically used self-checkout before (convenience, drug, department stores) or in departments such as deli, bakery, etc. in locations that deploy the technology at the front-end?
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11 Comments on "Self-Checkouts Seek Change of Scenery"
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Smaller, more shopper-friendly self-checkout setups is a big idea. The challenge with self-checkout today is that it doesn’t feel easier than waiting in line and letting a clerk do it for the shopper. In fact, many shoppers report it feels hard and even “scary.”
Smaller setups in locations throughout the store can be more approachable, emphasizing the benefit vs. the intimidating technology and leveraging location convenience. Plus keeping lines smaller at the front end can certainly reduce the perceived wait time, improving the overall shopper experience.
Of course, with every cool idea comes operational reality. The front ends of most stores are set up to drive incremental sales and manage shrink. This technology will require new merchandising approaches and creativity. The winners will be those who think about integrating the smaller checkouts into their overall merchandising scheme, moving beyond “just” creating more places to checkout.
In my humble opinion, self serve checkouts represent the end of the customer service and basket growth in the retail industry. I do not see any benefit from a sales and consumer point of view. By installing self checkouts, basically we are saying that we do not want to upsell the customer anymore and we do not want to provide personalized service to our customers. We are also saying that we want the customer out of the store faster rather then have them shop for a longer period of time.
Retailers would be better served in hiring and training the right people for the final customer interaction in the store. Stores that have sellers instead of ‘cashiers’ or a machine will see increased basket and transaction growth (not to mention increased customer satisfaction and loyalty!). This is one instance where computers negatively impact the business.
This is the trend of the future. (Look at the airline kiosk lines) But you have to get it right! Most of the machines out there have problems a good portion of the time. There is nothing more frustrating to the consumer to go to a self checkout machine and it doesn’t work, then have to start all over in a long line. The focus should be on keeping the directions simple, clearly marked, and up all the time. People will gravitate to the ease of use and convenience.
I understand the cost savings attraction for the retailers but as a consumer I am totally turned off by self-checkouts. It’s not that I am against technology but I prefer the human interaction at least when it is positive. Our newest Home Depot makes you go through the self-checkout but has a cashier there to check you out in case you don’t want to use it. They only have one normal checkout lane and it is never staffed. Makes me want to go to Menards instead. Or better yet, use the Internet if we are not going to have any service anymore.
I think multiple self check out areas would be a great help to big box stores to increase and encourage the quick fill-in trip visits. Also think it could would in convenience stores and gas station marts where long lines are particularly annoying at peak times when everyone is in a hurry. But, the technology MUST work or the annoyance factor will drive shoppers away forever!
Staying at a small hotel (only 8 rooms, with a 2-table restaurant), I noticed a notebook on the public bar. There was no bartender or cashier. Folks wanting refreshment wrote their drinks in the notebook and served themselves. At checkout time, the notebook was consulted for the bar tab.
Yes, there were guests who cheated. Yes, there were guests who thought a self-service bar was poor service. But the volume didn’t allow having a bartender or a $250,000 robotic serve system or full-time video surveillance or a $1 million RFID installation.
Don’t like self-checkout? Are you willing to pay more for personal cashier service? Do you ever use ATMs or do you only want a live bank teller? Ever eat in a restaurant or do you insist on a personal chef? Are you everybody? Are you most people?
I agree that self-checkout is the future. However, equipment providers and retailers must address the security issues, such as barcode switching and shoplifting. Just yesterday, a story was published about a thief who had repeatedly substituted a low priced barcode for expensive stereo speakers.