SELF CHECKOUT SYSTEM

CONTEMPORARY ISSUES
PRESENTED BY – ABHISAR PARATE                                                      
                                                       WHAT IS SELF CHECKOUT

• Self checkout is a convenient shopping journey where customers ring up their own purchases, bag them,
and pay without the assistance of a cashier. This approach has been deployed in numerous supermarket
chains, fast food restaurants, and chain retailers. This article would give you an overview of self
checkout and its striking impacts on your business.
                                              TYPE OF SELF CHECKOUT SYSTEM                      

Scan and Go Systems : This is where the consumer is provided with a ‘scan device by the retailer which
can be used while shopping to scan the barcodes of items they wish to purchase. At the end of the
shopping journey, the user is then required to go to a fixed point and dock their scan device in a terminal,
which then processes the transaction and takes payment from the consumer.

Kiosk self checkout : This is when a customer brings the chosen products to a specific location in the store
and has them scanned, either using the barcodes on the items or by selecting an item type from a list of
alternatives displayed on an interactive screen by the machine. The customer can then pay for their
purchases with cash or a credit or debit card.

  
• Mobile Scan and Go Systems: the third main variant in use now, and one that has only recently begun
to be offered by retailers, is similar to the Scan and Go system described above except that instead of
using a scan device provided by the retailer, the consumer uses their own mobile device, utilising a
bespoke App provided by the retailer (or a third party), and the camera functionality built into the device,
to scan and record products they wish to purchase. This also provides the option for the consumer to pay
for their items anywhere in the store via their mobile device.
• Other forms of SCO technologies are available, with new approaches being developed all the time,
including the use of RFID. More recently the Amazon Go system, which was unveiled towards the end of
2016 in their Seattle Headquarters store in the US, uses a network of cameras, sensors and weight pads
to enable a consumer to pick up any items and exit the store without any need for barcode scanning or
interaction with a payment system. The prospective consumer needs to be registered with Amazon and to
have downloaded a bespoke App before entering the store. Upon arrival, the user has to scan a unique
code generated by the App on their mobile device to gain access to the store, and then they are free to
select items and then simply leave the store, receiving an electronic receipt within 20 minutes. A number
of other companies are also beginning to offer technologies similar to this approach.
                                SOME BENEFITS OF SELF CHECKOUT ADAPTATION

• Quicker checkout
• The Washington Post conducted an experiment a few years ago to measure how long it took to buy five
items at self-checkout lanes in several grocery stores throughout the Washington area. Regardless of the
retailer, they discovered that each transaction took less than two minutes to complete.
• Self-checkout is being taken to new heights by certain large shops. They provide mobile checkout, which
allows customers to scan barcodes with their phones while shopping. 
• If you don’t use this quick option, you might be able to save time by having a single line for all registers,
but clients who aren’t used to it might be confused or upset. Now, single lines at self-checkout lanes
aren’t necessarily required, but it’s become an unofficial norm among consumers. 
• Labor cost reduction : Using self checkout is considered a way of saving money because it eliminates the
need for a cashier at each register. Retailers are divided since one staff can easily oversee 6-10 self service
registers.  However, several observers noted that cashiers aren’t always fired as a result of self checkout,
but rather redeployed to new, more demanding jobs. This implies they’re still on the payroll, but they’re
contributing more to the store’s overall profitability and revenue.

• Customer favorite option : Customers prefer self checkout because of the perceived time savings,
according to Consumer Reports. In addition, a 2004 McDonald’s study indicated that consumers who used
self-service kiosks were more likely to order supersize meals, paying an average of 30% more each
transaction.  
                         CONTEMPORARY ISSUES OF SELF-CHECKOUT STATIONS

• With the possible saving from reduced checkout assistants, the implementation of self-checkout
technology is huge. According to CardFellow, a typical 4-lane self-service checkout setup costs
$125,000. Most small businesses cannot afford this technology. As for mid-sized chain stores, they may
still face cash problems by implementing several kiosks at each store.  
• An Accenture study found that 77% of US customers prefer interacting with humans than digital devices
in service-related issues. The personalized service may be difficult to be completed by automized
machines. Especially for senior people who are used to the person-to- person service and are more likely
to need personal interaction, they might regard this new method of shopping as a lack of
services. Therefore, without knowing the major customers of a specific store, it is difficult to predict
whether the implementation of the SSTs would increase the customers' shopping experiences.  
Conclusion 
Technological innovation may provide a better shopping experience for those who are adept to the
technology, but retailers would face huge costs to implement them. Moreover, for retailers whose target
audience are senior people, this may be a technology upgrade they choose to skip and instead focus
on personal interactions. 
                             THANKYOU