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Self-checkout devices are growing in number by more than 10% each year, according to Greg Buzek in a recent blog. So, contrary to some rumors circulating through the media, self-checkout is not dead or dying.In a recent consumer study, NPD Group has confirmed that consumers are increasingly interested in self-checkout technology. The study showed that when grocers implement self-service, approximately 35% of transactions are completed using the technology. Additionally, nearly 50% of U.S. consumers want stores to offer self-checkout.But to offer a successful self-checkout solution, retailers must consider a number of factors and determine the best implementation strategy. During this upcoming webinar, attendees will learn about the top 5 strategies that will ensure successful self-checkout in grocery stores. Real-world case studies will shed light on key self-checkout tactics.Attendees also will learn more about the recent research completed by NPD, as well as an in-depth look at IHL’s “2011 Self-Checkout Kiosk Study,” presented by Greg Buzek.
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Self Checkout Is Alive And Well
#LiveWebinar November 15, 2011
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About Retail TouchPoints
Launched in 2007
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Debbie Hauss Editor-in-Chief Retail TouchPoints
Moderator
Carrie Smola Solution Marketing Director NCR Corporation
Greg Buzek President IHL Group
Mike Inderrieden Human Factors Self-Service Dir. NCR Corporation
Panelists
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Self-Checkout On The Rise
61% of retailers plan to increase their investment in store operations in 2011.
Those dollars are likely to go to new technologies and process improvements, including self-checkout and other in-store
technologies.
- NRF 2011 Retail Horizons report
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Self-Checkout Enhances The Customer Experience
Close to half (48%) of retailers will have installed or plan to install self-checkout
- RSR Research, 2011
In a recent survey of 16,000 consumers, Self-Checkout ranked as the number-one most valuable supermarket technology that
benefits the customer experience. 65% of U.S. consumers consider self-checkout important.
- Empathica, 2011
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Supermarkets Sell Self-Checkout
As consumers become more used to self-checkout in supermarkets, they appreciate it more in other retail
environments…
When new technology emerges, it takes time for the providers to become adept at using it successfully. This has been true for self-
checkout technology…
Some supermarkets removed self-checkout due to some glitches, but the general trend among supermarkets has been to expand
self-checkout.
– Elliot Maras, editor at vendingmarketwatch.com
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Self-Checkout Benefits Both Retailers and Shoppers
Self-checkout systems benefit retailers by providing cost efficiencies from reduced staff requirements, and indirectly
reduced personal training costs and other variable costs which proportionate to the number of staff employed.
Shoppers benefit from the reduced checkout time, better service, perceived privacy and anonymity.
- International Journal of Research in Marketing
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Advancements in Self-Checkout
SCO systems are now re-engineered or specifically manufactured for SCO offering improvements in functionality,
form factor, costs and reliability.
SCO is a proven solution for increasing positive customer service metrics by reducing queues at checkout, trimming labor costs
and delivering a strong ROI that pays for the technology in 12-18 months.
- Kioskmarketplace.com
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Improvements Driving the Adoption of Self-Checkout
1. Better hardware and software designs
2. Improved system reliability
3. Cashier interventions
4. Easier to train and use
5. Integration to POS
6. Coin and note recycling
7. Express credit and ID verification
8. Computer visioning solutions
9. Mobile technology integration
10. Advanced monitoring and diagnostics
- Kioskmarketplace.com
GREG BUZEK PRESIDENT [email protected] WWW.TWITTER.COM/GREGBUZEK
" Rapid Project RFP Toolkits (with C-Core) " POS, WFM, ERP, HW Maintenance, Fresh Item Mgt.
" Research and Advisory Services " POS, POS Printers, Self-Checkout, Supply Chain
Software, Kiosk, WFM, Price Optimization, etc. " POS by Vendor Share
" Sophia - Technology Data Service " WorldView IT Sizing Models
" IT sizing for hundreds of Retail/Hospitality Technologies
" SMB Sizing – retail outlets, cashpoints " Custom Analysis
Haves and Have Nots
" It’s not a 99% verses 1%, but 19% verses 81% " It’s really a battle between the haves and the
have nots…. " And that is those who have a job and preserved their
income…and those who are underemployed or worse. " Those who have preserved incomes, spending, taking
advantage of better terms. " Credit is back
Retail Sales Drivers
" Oil prices will spike 15-25% in the first quarter of 2012. " Long term trend is still up. " But election year so we will see what happens with oil
reserves. " First groups to feel the pain from oil will be restaurants/
hospitality, then clothing stores. " Will see further move to private brands and discounters.
" Those with jobs are less afraid of losing them " But before then, Christmas supposed to be up 2-6%
Current State of the Store
" Economy creating sea change in the industry " Store vacancies/Pop-up stores/Leases renegotiated
" Overstocks remain a huge problem. $65 Billion N/A " Most of labor focused on merchandise is focused on
markdowns. " True cost is cost+labor+signage+transport
" WW – Inventory Distortion $775B " Key Technologies & Concepts Affecting Market
" Server Virtualization – Some move to POS Virtualization " HaaS POS " Store Associate Level Mobile " Self Service (various forms)
Self-Checkout Trends
" Mainstream press looking for someone to blame. " A couple of announcements got tremendous exposure
" StoreFront Backtalk – MSNBC – Drudge Report " Feeding frenzy….
" Reality " Installed base of Self-Checkout units continues to grow double
digits as new retailers put in the machines. " Shipments up 6% in 2011. " New form factors such as mini-size units open up prepared food
areas and these other segments. " New segments such as Convenience Stores/Drug Stores
continue to deploy.
Self-Checkout Customer Opinions
Source: IHL Group Self-Checkout Study
But Self-Checkout Not For Everyone
" Albertsons LLC looking for a way to compete with Wal-Mart, Safeway, and Kroger " All three giants focused on EDLP " Spin, spin, spin.
" Doesn’t work everywhere. " 4 lanes store should do $300k plus in weekly turnover " Works best in professional areas or transient areas " Works well in bi-lingual areas, but not so well in retirement
communities. " Traditionally, where it was not liked the most was liberal college
areas. - But is used heavily
Some Issues Affecting Self-Checkout
" It’s not the economy, it’s the interventions " Age/Qty restricted merchandise biggest complaints
" Store policy, signage can make a HUGE difference in satisfaction level of using self-checkout.
" Those that like self-checkout are a far larger group than those who are against it.
" When most self-checkouts were installed, retailers could not find labor.
Bottom Line
" Self-Checkout continues to grow in shipments and installed numbers each year.
" Those uninstalling are doing so for strategic reasons beyond self-checkout…but spin, spin, spin.
" New formats are bringing new opportunities.
RetailROI SuperSaturday Saturday January 14, 2012 9am-4pm
Free to Retailers
Free to Retailers - Sponsorships available for Vendors Register www.tinyurl.com/supersaturday2012
Consumer and Retailer Self-Checkout Trends
Carrie Smola NCR SelfServ™ Checkout
NCR Confidential 25 NCR Confidential 25 NCR Confidential 25
Is Self-Service Better Service?
The perfect combination - proven ROI with enhanced
customer satisfaction
• Consumer Choice with Retailer Benefit – NCR SelfServ Checkout Customers Report
• Up to 40% Queue reduction
• 20% Throughput increase
• 7% Revenue increase per labor hour
NCR Confidential
What U.S. Consumers Want: By The Numbers
NCR Confidential
Self-Service Preference Spans Generations
*Source: NPD Consumer Study 2011
NCR Confidential
“It's simply about innovation and being a 21st
century retailer.”
- Brendan Wonnacott, Tesco (Fresh & Easy)
What Retailers Are Saying…
Major Home Improvement store
said that their “stores have used
the [self- checkout] systems for so long, having them is more about maintaining
customer expectations.”
“[Self-checkout is] probably the most rewarding thing we
ever did. It's helping our
employees get more done in a
day.”
- Chris Dwyer, QuickChek
NCR Confidential
Self-Checkout Outlook Remains Strong “ The total number of SCO shipments worldwide rose
17% in 2010.”
“ Shipment numbers are forecast to surpass 60,000 in 2016.”
“ By 2016 a total of 324,000 units will be in use around
the world.”
Top Five Strategies to Ensure Successful Self-Checkout in Grocery Stores
Mike Inderrieden NCR Human Factors Engineering
31 NCR Confidential
Strategies for Self-Checkout Success
1. Management Support
– Executive Sponsor communication
– Self-Checkout Champion
– Store Manager engagement
32 NCR Confidential
Strategies for Self-Checkout Success
2. Objective Setting and Reporting
– Corporate sets expectations for success
– Store management reporting tools
Suggest calls with top and under performing stores
33 NCR Confidential
Strategies for Self-Checkout Success
3. Staffing
– Dedicated attendant
– Balance full-service lanes
– First to open and last to close
34 NCR Confidential
Strategies for Self-Checkout Success
4. Attendant Training
– Both technical and behavioral training
– Refresher training
35 NCR Confidential
Strategies for Self-Checkout Success
5. Constant Improvement Culture
– Keep self-checkout system up to date
– Monitor operational initiatives
36 NCR Confidential
The Self-Checkout Experience
Customers
Operations and Support
Employees
All Equally Critical Components for a Successful Implementation
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Q&A Session
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Q&A • Panelists
Debbie Hauss Editor-in-Chief Retail TouchPoints
Moderator
Carrie Smola Solution Marketing Director NCR Corporation
Greg Buzek President IHL Group
Mike Inderrieden Human Factors Self-Service Dir. NCR Corporation
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http://rtou.ch/self-checkout
