50. Self-Checkout
5Digest
This episode delves into the history and economics of self-checkout lanes in supermarkets, tracing their evolution from the self-service concept of Piggly Wiggly to the widespread adoption of automated checkout machines. The episode explores the perceived efficiency of self-checkout, highlighting the often-overlooked labor costs and the potential for increased shoplifting. It examines the impact of self-checkout on customer experience, discussing the frustration of dealing with technological errors and the feeling of being policed by security measures. The episode also explores the potential for a shift away from self-checkout, with some retailers opting for human cashiers to provide a more personalized and customer-centric experience. The episode concludes by considering the broader implications of self-service technology, suggesting that the trend of transferring paid tasks onto unpaid consumers is likely to continue across various industries.
Outlines
The Rise of Self-Checkout
This Chapter explores the history of self-service in grocery stores, starting with the revolutionary concept of Piggly Wiggly, which introduced the idea of customers selecting their own items. It then traces the development of self-checkout technology, from the first automatic checkout machine in 1986 to its widespread adoption in the 2000s. The chapter highlights the perceived efficiency of self-checkout and its potential to reduce labor costs for retailers.
The Economics of Self-Checkout
This Chapter examines the economic implications of self-checkout, revealing that while it may seem like a cost-saving measure, it often leads to an increase in labor costs due to the need for additional staff to assist customers and address technological issues. The chapter also explores the significant rise in shoplifting associated with self-checkout lanes, highlighting the challenges retailers face in combating this issue.
The Customer Experience and the Future of Self-Checkout
This Chapter delves into the customer experience with self-checkout, highlighting the frustration of dealing with technological errors and the feeling of being policed by security measures. The chapter explores the growing dissatisfaction among customers who feel they are being forced to perform labor for the store without adequate compensation. It also examines the trend of some retailers moving away from self-checkout, opting for human cashiers to provide a more personalized and customer-centric experience. The chapter concludes by discussing the potential for future technological advancements in self-checkout, such as the use of smart carts and new barcode technology.
The Broader Implications of Self-Service
This Chapter explores the broader implications of self-service technology, suggesting that the trend of transferring paid tasks onto unpaid consumers is likely to continue across various industries. The chapter highlights the seductive nature of this trend for businesses, as it allows them to reduce labor costs and increase efficiency. However, it raises questions about the long-term consequences of this trend for both consumers and the workforce.
Keywords
Self-Checkout
A system in supermarkets where customers scan, bag, and pay for their own groceries, eliminating the need for a human cashier. It has become increasingly prevalent in recent years, with 96% of major grocery chains using it.
Piggly Wiggly
The first self-service grocery store, founded by Clarence Saunders in 1916. It revolutionized the grocery industry by allowing customers to select their own items, reducing labor costs and offering lower prices.
Shoplifting
The act of stealing goods from a store. Self-checkout lanes have been linked to a significant increase in shoplifting, as customers are more likely to take liberties when they are in charge of the scanning process.
Shrinkage
The loss of inventory due to theft, damage, or other factors. Self-checkout theft, known as shrinkage in the retail industry, has become a major concern for supermarkets, with some reporting a four to five times increase since the pandemic.
Just Walk Out
A technology developed by Amazon that allowed customers to shop in brick-and-mortar stores without having to check out. Customers were automatically billed when they walked out of the store using cameras and scanners. Amazon discontinued this technology in 2023.
GS1
A global organization that develops and maintains standards for barcodes and other product identifiers. GS1 has proposed a new product identifier that looks more like a QR code and contains a wealth of information about the product, such as its origin, manufacturing date, and food safety recall information.
Aeroan
A grocery chain in Los Angeles that prioritizes customer experience and has opted not to implement self-checkout lanes. They believe that human cashiers provide a more personalized and enjoyable shopping experience.
Jumbo
A Dutch grocery chain that has implemented "slow lanes" where human cashiers intentionally take more time to chat with customers. This approach aims to foster customer loyalty and create a more positive shopping experience.
Q&A
What is the history of self-checkout in supermarkets?
Self-checkout technology evolved from the self-service concept introduced by Piggly Wiggly in 1916. The first automatic checkout machine was introduced in 1986, but it wasn't until the 2000s that self-checkout became widely adopted. This was partly due to the Great Recession, as businesses sought ways to cut costs.
What are the economic implications of self-checkout?
While self-checkout may seem like a cost-saving measure, it often leads to an increase in labor costs due to the need for additional staff to assist customers and address technological issues. Additionally, self-checkout has been linked to a significant rise in shoplifting, which further impacts retailers' bottom line.
How does self-checkout affect the customer experience?
Self-checkout can be frustrating for customers who encounter technological errors or feel pressured to complete their transactions quickly. Some customers also feel like they are being policed by security measures and resent being forced to perform labor for the store without adequate compensation.
What are some potential solutions to the problems associated with self-checkout?
Some retailers are moving away from self-checkout and opting for human cashiers to provide a more personalized and customer-centric experience. Others are experimenting with new technologies, such as smart carts and advanced barcode systems, to improve the efficiency and user-friendliness of self-checkout.
What are the broader implications of self-service technology?
The trend of transferring paid tasks onto unpaid consumers is likely to continue across various industries, as businesses seek to reduce labor costs and increase efficiency. This raises questions about the long-term consequences of this trend for both consumers and the workforce.
Show Notes
Grocery stores have turned shoppers into cashiers. Zachary Crockett runs two bags of chips and a Gatorade over the scanner.
- SOURCES:
- Sara Alloy, experience retail lead for North America at Publicis Sapient.
- Christopher Andrews, professor of sociology at Drew University.
- Phil Lempert, founder and C.E.O. of SupermarketGuru.
- RESOURCES:
- "Feeling Rewarded and Entitled to Be Served: Understanding the Influence of Self- Versus Regular Checkout on Customer Loyalty," by Farhana Nusrat and Yanliu Huang (Journal of Business Research, 2024).
- "It’s Not Just You: Self-Checkout Is Awful. These Retailers Finally Agree," by Sarah Bregel (Fast Company, 2023).
- "'I'm Banned From Walmart Over a Bag of Reese's,' Houston-Area Woman Says After Self-Checkout 'issue,'" by Matthew Seedorff (Fox26, 2023).
- "Self-Checkout Is a Failed Experiment," by Amanda Mull (The Atlantic, 2023).
- The Overworked Consumer: Self-Checkouts, Supermarkets, and the Do-It-Yourself Economy, by Christopher Andrews (2018).
- "The Banana Trick and Other Acts of Self-Checkout Thievery," by Rene Chun (The Atlantic, 2018).
- "Self-Service Checkouts Can Turn Customers Into Shoplifters, Study Says," by Christopher Mele (The New York Times, 2016).
- "Check This Out: A Revolution in the Supermarket," by Daniel P. Puzo (Los Angeles Times, 1987).
- EXTRAS:
- "How the Supermarket Helped America Win the Cold War," by Freakonomics Radio (2019).
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