Self Service Retail Technology April, 2013
Self Service Retail Technologies It is a known fact that these days, the retail consumer wants value for money, availability of choice and speed of service, especially given that in today’s fast paced lifestyle, time has become a precious commodity. The consumer wants to save time not only during shopping but also in making the payment and checking out of the store. The Internet has also taught the consumer the immense potential to shop without any assistance, saving time in the process for the consumer. The same concept is now getting replicated by the brick and mortar retailers as well. The Brick and mortar retailers have started updating their stores with latest technologies to empower the consumers with new-age self service devices to help the consumers shop without any assistance from the store staff, saving the customers time in the process and saving themselves additional cost of manning the store too. Additionally, the technology also gives the consumer a hassle free shopping experience allowing them to take as much time as they need for their disparate needs, choices and decision making criteria. The new generation technologies are so advanced that they help consumers get the best product available in the store at the best price on most occasions. Following text briefly encapsulates some of the recent trends in the self checkout technology sphere:
A self checkout system is generally comprises of many part and functions: Price Reader: a barcode reader which scans the price of purchased item Display Device or Data Entry Device: device with a touch screen display that helps consumer select their product (at times selection may be via touch-screen and the entry of chosen product may be a keybased functionality) Weighing Scale: To verify the weight of the product for price calculation. In some store this in built into the conveyor belt during self checkout system Slot Machine for Cash: To accept cash from consumer for the purchase and render the change in return against the amount paid
Generally self service checkout is done through the following steps Scanning the product Bagging it into the trolley Paying Store check-out Some examples of technology investment are summarized below:
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Self check out devices Scan It Device- A device used in Stop Shop and many big stores in US. With this device customers scan and bag the product while shopping and the machine tallies the value automatically. The device helps consumer to do a hassle free shopping and perform an easy checkout. Besides, it is a hand held device which can be easily carried during shopping. It also helps the customer to get information about the best promotional deal going on in the store. Some stores that have tried this handheld device have received very positive feedback from the consumers.
Tunnel Scanner- Kroger became the world’s first retail house that installed a fully automated tunnel scanner at checkout points. The way it works is, the consumers keep the product on a conveyor belt of tunnel scanner and the machine scans the barcode of various products automatically. After scanning, the machine generates a receipt with another barcode from the attached printer. The consumers take this receipt to the payment counter and make the payment.
Trolley to trolley self – checkouts – In this device the machine weighs a complete trolley before scanning the product and transfers all the products after the scanning on to the other trolley and again weighs the trolley. The system ensures that every product is scanned and billed.
Self Scanning with shopper’s mobile phone - Major retailers like Carrefour, Ahold, Casino, Metro, Tesco and many retailers have developed advanced Smartphone applications. The shoppers download the applications on their Smartphones which then become self scan devices themselves. Shoppers can then scan the products at the store though the phones and make payment at the checkout point. Metro group has decided to use the RedLaser technology which enables iPhone camera to read the barcodes without a laser scanner. Similarly Nokia phones have software which is called MEA (Mobiler Einkaufsassistent or Mobile Shopping Assistant in English) that helps the shopper to use his / her phone as a self checkout device. Self Service Retail Technology
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Exhibit: Metro Group Self Scanning and Payment with mobile Phone Step 1
Step 2
Step 3
Step 1:- To start shopping, scan the barcode of trolley and the iPhone connected to the real merchandising system Step 2:- RedLaser Technology helps iPhone to scan the product and add to the shopping cart Step 3:- At end of the shopping a bar code displayed on the screen of iPhone is shown to the ‘Pecuron’ machine for payment
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Value Added self scanning - Mobile checkout devices which help consumer to shop and also provide some value added services like couponing, product placement in the store, product knowledge, and discount offers etc.
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Bouncepad mounted iPad - Device used by Douglus, a retailer in Berlin, Germany. The retailer developed the application for the nail care division at their store. Shoppers enjoy shopping with Bouncy iPad self service device
Cash Handling Devices Technology which facilitates shopping without assistance also helps at the time of the payment as retailers continue looking for technologies which replace human effort at the time of payment. In response to retailers’ demands, some companies like NCR, Wincor Nixdorf and Fujistu have introduced a self service payment device inbuilt with cash recyclers into the market. However, there are some challenges with the cash Self Service Retail Technology
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handling devices, viz - lack of user friendliness, inability to handle large ticket purchases or large cash amounts for instance. So companies are looking at these challenges and developing cash handling devices that meet the consumer’s as well as retailers’ requirements. For instance, a French Grocery retailer Auchan has installed a self service payment device which has the facility of handling cash automatically. The device is separated from the product scanning terminal. After the scanning of the product consumer is expected to pay at the new self service payment terminal either through cash or card. The terminal also has the facility for contactless payments with Near Field Communications (NFC). Similarly Metro Group has installed self service payment machine from Skeye and Gunnebo. In Europe there are many retailers who are using an automated cash handling machine which is integrated into manned tills. The machine is able to recycle coins and notes which are collected earlier and dispense change automatically. That helps retailer protect themselves from stealing and robbery. The major retailers are currently following up with the technology companies to come up with some new self service payment machines that help retailers to reduce their operational cost and also help to increase customer satisfaction.
Source: All data from Secondary Research; Sutherland Analysis
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