Comment: The customer is not always right
Whether customers like it or not they will have to accept that stores will be kitted-out with increasing amounts of technology that is replacing many of the tasks previously undertaken by in-store employees.
In recent months there has been an explosion in activity by retailers – notably the grocery operators – to install technology solutions for a variety of tasks. Most of the action has been around the tills with yet more self-checkouts being introduced. Among those retailers investing in the technology are the Co-op, Asda, Marks & Spencer, Sainsbury’s and Lidl. No doubt the other major supermarkets I have not mentioned are also pursuing similar strategies but have maybe been a bit quieter about it.
The activity at Sainsbury’s includes the trial of larger self-checkouts that incorporate conveyor belts, which can accommodate shoppers with full trolleys rather than baskets. A similar solution is being rolled out across M&S stores, which represents a sign that we have well and truly passed the point whereby self-checkouts are solely for quick in-and-out visits by customers buying just a few items. M&S is also adding self-checkouts to its fitting rooms, with the solution in around 30 outlets already and the plan is to have them installed in 100 stores by early 2028.
Although retailers will often say such initiatives are for the convenience of the shopper, the rationale is more often than not centred on driving cost-savings. Earlier in the year Sainsbury’s set a new target to save £1 billion over the next three years and one of the primary areas to target is personnel.
This can involve replacing people with tech or assigning them to other tasks – what retailers would classify as more valued-added activities rather than the transactional stuff. The pursuit of such strategies has undoubtedly been accelerated by the recent ham-fisted budget that has further boosted the costs of employing people – especially at the entry-level where most in-store jobs sit.
But do the customers want this in-store tech? Many do not, judging by the numerous surveys undertaken over the years. A recent one from Daemon shows 60% of people prefer to use traditional checkouts with a cashier. This climbs to 71% among Baby Boomers but drops to 59% of Millennials and 46% of Gen Z. Even among the youngsters these are chunky figures and highlights that seriously high numbers of people do like some element of human interaction in-store. Further highlighting this is the survey’s finding that a mere 5% of people opt to use Just Walk Out technology when out shopping.
At least in most stores – for now at least – shoppers can still choose to use traditional staffed checkouts and avoid the technology altogether. This avoidance might prove increasingly hard as it looks like solutions are being introduced into other areas of stores. Being particularly active in this department is Asda. Probably because in its debt-laden state it is in more desperate need to reduce its costs compared with the other major supermarkets.
It has recently announced it is trialling a self-service returns ‘drop box’ that allows customers to deposit unwanted or faulty goods and receive their refund automatically. Electrical, home goods, ambient and fresh grocery items can be returned after the shoppers receipt has been scanned along with the item’s barcode.
Alongside this Asda is also testing a vape and cigarette vending machine. Although this is initially placed behind a kiosk desk at the trial store there is the potential for it to be used as a self-service solution for nicotine products and other age-restricted items along with high shrinkage goods such as razors and batteries. Expect to see steak added.
Whether these trial solutions gain traction remains to be seen but shoppers should be in no doubt that they will be seeing a greater amount of technology in-store – regardless of whether or not they prefer the human touch.
