Saturday, October 22, 2022

Nobody likes self-checkout. Here's why it's everywhere. | E-Neighborhood Advisor

In 2020, 29% of transactions at food retailers were processed through self-checkout, up from 23% the year prior, according to the latest data from food industry association FMI. This raises the question: why is this often problematic, unloved technology taking over retail? CNN Business reports that the introduction of self-checkout machines in 1986 was part of a long history of stores transferring work from paid employees to unpaid customers, a practice that dates all the way back to Piggly Wiggly — the first self-service supermarket — in the early 1900s. Instead of clerks behind a counter gathering products for customers, Piggly Wiggly allowed shoppers to roam the aisles, pick items off the shelves and pay at the register. In exchange for doing more work, the model promised lower prices. Self-checkout, however, was designed primarily to lower stores' labor expenses. The system reduced cashier costs by as much as 66%, according to a 1988 article in the Miami Herald. But self-checkout did not revolutionize the grocery store. Many customers balked at doing more work in exchange for benefits that weren't entirely clear. It took a decade for Walmart to test self-checkout. Only in the early 2000s did the trend pick up more widely at supermarkets looking to cut costs during the 2001 recession and faced stiff competition from emergent superstores and warehouse clubs. A 2003 Nielsen survey found that 52% of shoppers considered self-checkout lanes to be "okay," while 16% said they were "frustrating." Thirty-two percent of shoppers called them "great." The mixed response led some grocery chains, including Costco, Albertsons, and others, to pull out the self-checkout machines.
Walkaways The move to self-checkout has created unintended consequences for stores as well. Retailers found self-checkout stations were not autonomous and required regular maintenance and supervision. Although self-checkout counters eliminated some of the tasks of traditional cashiers, they still needed to be staffed and created a need for higher-wage IT jobs, he said. In the biggest headache for store owners, self-checkout leads to more losses due to error or theft than traditional cashiers. Customers make honest errors as well as intentionally steal at self-checkout machines. Some products have multiple barcodes or barcodes that don't scan properly. Produce, including fruit and meat, typically needs to be weighed and manually entered into the system using a code. Customers may type in the wrong code by accident. Other times shoppers won't hear the "beep" confirming an item has been scanned correctly. Other customers take advantage of the lax oversight at self-checkout aisles and have developed techniques for stealing. Common tactics include not scanning an item, swapping a cheaper item (bananas) for a more expensive one (steak), scanning counterfeit barcodes attached to their wrists, or properly scanning everything and then walking out without paying. Self-Checkout is Here to Stay Despite self-checkout's many shortcomings for customers and store owners, the trend is only growing. Walmart, Kroger, and Dollar General are piloting exclusively self-checkout stores. Costco and Albertsons have brought self-checkout back after removing it years ago. Amazon has taken the concept a step further with cashier-less Amazon Go stores. It may simply be too late for stores to turn their back on self-checkout. Today's stores cater to shoppers who perceive self-checkout to be faster than traditional cashiers, even though there's little evidence to support that. But, because customers are doing the work, rather than waiting in line, the experience can feel like it's moving more quickly. Store owners have also seen competitors installing self-checkout and determined they don't want to miss out. Covid-19 has also hastened the spread of self-checkout. During the pandemic, many customers opted for self-service to avoid close interactions with cashiers and baggers. And challenges in hiring and retaining workers have led stores to rely on the machines more heavily to get customers through the door. Personally, I didn't like self-checkout when they first came out, but I have warmed up to them now that I understand them better. My wife and I have a system and we can get through them pretty quickly now. How do you feel about them? Good, Bad, Indifferent - I'm always curious for feedback. Your Flooring Consultant, Matt Capell Email: sales@capellinteriors.com Phone (208) 288-0151 P.S. Here's a joke for you! How does Zorro pay for his groceries at the self-service checkout? On card!

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