Agenda

1. Retail Market Trends

2. Self-Service implementations

examples

3. Technology evolution

Time starved

Driven by value

Digitally empowered

Shop-hopping

70% of consumers don’t have enough time…

Consumers want store associates to be

technology-enabled and to be as knowledgeable

as they are….

Impact of the economy causing consumers to cut

discretionary spending and shop

for deals

The elusive consumer… A ‘Here And Now’ culture – with unlimited access and choice

Smaller store formats

Growth in mobility

and channel convergence

Focus on in-store experience

Reduce costs, improve service

76% of retailers say their #1 use of in-store technology is

to improve the customer experience

Self-checkout provides: Up to 40% queue reduction

A 20% throughput increase

Over 400 labor hours reduced/redeployed per week

A 7% revenue increase per labor hour due to labor

redeployment back into the store

70% of smartphone owners will use their phones while

shopping in the store

NCR SelfServ Checkout Global Reach

NCR Ships 2 out of 3 Self Checkout Units Worldwide

• 165 Retailers

• 13 segments

• 29 countries

• >110,000 units

The World of SelfServ Checkout

• Over 110,000 NCR SSCO Units Installed Globally

• Approximately 140 Million Customers Per Week Are Using NCR SSCO

• Serving Over 7 Billion Customers Per Year!

Overcoming Common Objections

Macro-Trends

North Europe

Lower impact by economical

crisis

Focus on customer experience

Store format rethinking

Cashier shortage

South Europe

High impact by economical

crisis

Focus on labor productivity and

operational costs

Store format rethinking

Big is bad Small is good

Macro Trends – What is

happening… Lower purchasing power

Only required purchases (strict shopping

list)

Purchase postponing

Preference for store with faster check out

Basket evolution

Lower average value

Lower number of items

Increase on number of transactions

Higher frequency

Promotion driven (Cherry Picker)

Lower store revenue generation

Retailers conventional reaction…

1. More promotions

2. Stop in spending

3. Sales driven actions

• Price war

Results…?

• Lower margin

• Lower improvement capability

• No improvement on operational costs

A different approach

Attention to consumer needs and demands

More services

Fidelization

Revenue Increase

More references

More services

Operational Cost reduction

More flexibility on store management

Margin improvement

Traditional checkout lane evolution

Kiosks (e.g. productive tobacco sales)

Large Baskets - In-Aisle Shopping

Small Baskets – Express Service (SSC or Assisted)

Converged Channel Retailing (collect and pay)

Dynamic CheckOut – Convertible Lanes

Implementation Examples

Asda Walthamstow

Asda, 19 Selborne Walk Shopping Centre, London, E17 7LS Walthamstow Central - Central

Store Format Supermarket

No. of SSCO Units 20

SSCO Version V.4

No. of Main Tills 5

Store re-designed to optimise SS potential

Offer a blend of self service solutions – permanent

availability – attendant zoning

Assess the regular lanes usage specialization / free up

the shop floor

Facilitate the access to the self service area + queuing

Optimize the additional merchandising space

Benefit from impulse merchandising (low racks)

Guide the customers with the proper signage

Leverage of self service at “kiosk” area

Boots Bishopsgate

Boots Flagship store Format

Located nearby Liverpool St Station– huge hub of commuters

and tourists

9 Self-service Checkouts

Self Service checkout – well located near

Operates with minimal but effective use of attendant

Operation optimised to maximise SSCO

Boots, 200 Bishopsgate London EC2M 4NR Liverpool St. – Circle/Cent./Met./Hamm.

Store Format Health & Beauty

No. of SSCO Units 9

SSCO Version V.5

Tesco Commercial

Street Express

Tesco Express (Convenience Format) in busy

commuter and residential district

7 Total Lanes - 3 SSCO

Lanes embedded alongside main till bank

Operates with a fractional attendant (multi tasked

cashier)

Always open tills are self checkout

Operation adjusted to fit self checkout

Tesco Express, 116 Commercial Street, London, E1 6NF Shoreditch High St. – Central

Store Format Convenience

No. of SSCO Units 3

SSCO Version v.4

No. of Main Tills 4

Tesco Metro, 6 Eastcheap, London, EC3M 1AE Monument – Circle/District

Store Format Small Supermkt

No. of SSCO Units 12

SSCO Version v.5

No. of Main Tills 5

Located in business district main customers are

professionals alongside steady flow of tourist traffic

Store has substantial peaks and flows in trade – very

busy between 12-2 and 5-7, quiet outside of these

times

SSCO has precedence over main bank, customers

pass through SSCO to reach tills

Open SSCO exit causes confusion over queuing entry

points

Tesco Metro

Boots Paddington

NCR’s worlds first smallest footprint SSCO

Located in one of the worlds busiest train stations

4 self service checkouts with 1 main till

Self Service checkout – well located and strong customer

visibility

Operates with minimal but effective use of attendant

Space utilisation optimised to leverage smaller footprint SSCO

offer

Store also has 2 tills within dedicated pharmacy area

Boots, Station Concourse, Paddington Station

London W2 1HB Paddington – Circle/Met./Hamm./Bakerloo

Store Format Health & Beauty

No. of SSCO Units 4

SSCO Version V.5

No. of Main Tills 1

Queue

entrance

Decision

point

Off-peak queue

entrance

Impulse

merchandise

opportunities

Queue

entrance

Queue

entrance

Decision

point

Decision

point

Off-peak queue

entrance

Off-peak queue

entrance

Impulse

merchandise

opportunities

Impulse

merchandise

opportunities

Sacoph Rome

First implementation in Italy for small stores

Located in residential area

2 self service checkouts with 2+2 main till (normally 2 lanes

opened)

Self Service checkout – well located and strong customer

visibility

Operates with fractional cashier

Attendant used on peak time

Store Format Convenience

No. of SSCO Units 2

SSCO Version V.5

No. of Main Tills 4

Technology Evolution

Redesigned Bagging Module Standard 1-bag Unit

2

3

4

1

1. Cabinet 2. Scale Platform 3. Standard Bag Rack 4. Basket Shelf

- 33cm

Express SSCO (Basket Over Bag)

Standard Bag Rack

Same Kit for Left and Right Hand Units. On site

field retrofit possible

New Basket Over Bag Kit.

Not Connected to Security Scale

Standard 1 Bag Bagging Area

Retrofit Existing 1 Bag Units…

PID = 7350-K509 Available in WOT

SelfServ Checkout “Flip”

PINpad and 2nd display on swivel mount

Cashier Mode

Direction of customer traffic

Folding platform

SelfServ Checkout Convertible

Input belt or basket shelf

3 bag, bag well

Single bag rack

PINpad and 2nd display on swivel mount

Self-Checkout Mode

Direction of customer traffic

Raised Platform for Cashier mode

Cashier Mode Self-Checkout Mode

Direction of customer traffic

Direction of customer traffic

How it works

Thank you

a.santalucia@nv-inco.com