Why Checkout Lines Are Disappearing At Stores Like Macy's And Sam's Club
Amazon’s Go store has been a hit wherever the unit has opened. Its grab-and-go concept has created excitement, and has also been a blueprint for other companies looking to make shopping lines shorter and offer a convenient way to shop. The new technology allows customers to be on on their way more quickly and with less hassle.
These stores require no cash or credit cards. All one needs is an app and an Amazon account. Maybe it was incentivized by the self-checkouts we find in many supermarkets today. They have trained customers to help themselves and respond to the prompts by the check-out device. Now, Amazon has taken the idea a step further, and that’s generating lots of attention.
Lauren Zumbach of the Chicago Tribune just reported that the regional, privately owned supercenter chain Meijer (of Grand Rapids, Michigan) has made it possible in its greater Chicago and Northwest Indiana stores to scan an item with a smartphone app as you take an item off the shelf and keep a running tab. At the end of the shopping spree, you just stop at a checkout counter, hold up the phone to a self-checkout register, and then be on your way. Meijer operates about 204 supercenters with an estimated sales volume of $17.4 billion. The company was founded in 1934 and is still owned and operated by the Meijer family.
Based on Zumbach’s report, Meijer customers were not immediately sold on the idea of using the app, and there are clearly some bugs to be worked out. Some people forget to scan, which delays the check-out process. Others are reluctant to wait during spot checks at the check-out kiosk.
Macy’s and Sam’s Club have their own versions of this convenient checkout process. At Macy’s you have to go to a checkout-counter, while in the case of Sam’s Club you do not. However, in the tradition of all wholesale clubs, you still have to show your receipt before leaving the store. So, there is a tight security check at Sam’s Club.
Standard Cognition, a San Francisco-based company, has developed an AI autonomous point-of-sale checkout system for brick-and-mortar stores. I believe that it was inspired by Amazon’s innovative technology. Using overhead cameras, the company can monitor every customer and charge them automatically. Of course, there are customers who will still want to pay cash and will have to check out at a separate kiosk in a store. Stores will also still have to restock the shelves and assist customers who need help. So, there is a minimum of labor saving at this point. However, there is no question that customers will be served more quickly, and over time they will gain confidence in the new technology.
Here we see innovative technology at work. Inspired by one retailer, it is now slowly becoming a way of life in more stores. I applaud innovation that saves a customer time and makes in-store shopping more fun.
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