Over the years, I've seen a rapid improvement in retail technology. One problem in retail today is the wait in a queue for people waiting to buy. This frustrates customers, leading to many lost sales.
Self-Checkout Technology
Self-checkout cash registers have become common in larger stores. Customers scan and bag their items and pay without a cashier. This retail innovation helps reduce queues and staffing needs, as one person can manage eight cash registers.
Benefits of self-checkout:
- Shorter wait times
- More checkout options during busy periods
- Reduced labour costs for retailers
Challenges with self-checkout:
- Some customers dislike using the technology, so you still need manned cash registers.
- These cash registers have high setup costs as they are expensive cash registers.
- It is not worth it for shops with low turnover.
- Higher rates of shoplifting. A recent study here of 5,000 transactions found that self-checkout lanes had 16 times higher shrinkage rates than traditional cashier lines. About 6.7% of self-checkout transactions had some amount of partial shrinkage versus just 0.32% with cashiers.
These are significant problems for retailers considering self-checkout technology. Several stores have removed their self-checkouts as a result.
AI in Retail: The Next Frontier of Checkout
.One promising solution uses AI.
How AI-Powered Cashierless Stores Work
This "grab and go" approach eliminates the need for scanning, potentially reducing theft by automatically addressing shoplifting while creating a smoother checkout experience. I can see the potential here as someone who's worked closely with POS systems.
Conclusion
The retail landscape is changing. While queues and theft remain significant challenges, new technologies offer promising retail queue management and shrinkage prevention solutions. As a POS provider, we're committed to helping retailers of all sizes navigate this evolving terrain.
Have you experienced these new checkout technologies as a customer? What are your thoughts on the future of retail? If you are in Melbourne or Sydney, you can see it in operation where it is on trial at ten 7-Eleven Australia stores here:
7-Eleven Cranbourne North (945 S. Gippsland Highway Cranbourne North)
7-Eleven Truganina (1/475 Leakes Road, Truganina Vic)
7-Eleven Craigieburn (264-270 Craigieburn Road Craigieburn Vic);
7-Eleven Doreen (8 Whitford Way Doreen Vic)
7-Eleven Tarneit (32 Escapade Street Tarneit Vic)
7-Eleven Braybrook (87 Ashley Street, Braybrook Vic)
7-Eleven Richmond (Building 2/658 Church Street, Cremorne Vic)
7-Eleven Burwood (Parramatta Road, Burwood, NSW)
7-Eleven Northmead (137 Windsor Road, Northmead NSW)
7-Eleven Graystanes (601 Great Western Highway, Greystanes NSW)
