In today’s evolving landscape, convenience store retailers must rethink what convenience truly means for their customers.
Is it speed of service? Or is it creating a shopping experience that feels satisfying to each individual?
The answer, of course, is both — but the real challenge lies in delivering these key elements every single time. Some retailers are turning to self-checkout (SCO) technology to help them meet the need for speed and a quality shopping experience the customer can control.
Pros, Cons and Possibilities
The adoption of SCO kiosks continues to grow. In 2023, 217,000 SCO terminals were shipped to retailers worldwide, with North America stores claiming more than 40%, according to Capital One Shopping Research. The report, released earlier this year, validates the fact that shoppers have embraced ringing up purchases on their own. Nearly 80% of consumers use SCOs on a regular basis, and 43% favor it over traditional manned registers. Additionally, 85% regard these stations as a time-saving alternative.
“Self-checkout provides customer control over the checkout experience, reduces perceived wait times and allows for faster, more seamless transactions, especially during peak hours,” said Marla Randolph, chief operating officer for the Army & Air Force Exchange Service, which boasts 4,330 locations on U.S. military bases around the globe. Over the past several years, the Exchange installed more than 1,500 SCO registers.
Whether operating a large c-store chain, a handful of stores or a single location, deciding how effectively SCO will serve your business means weighing the value of consumer control against the financial, spatial and labor requirements to implement self-checkout.
Price tags for systems vary but can run into the tens of thousands, and kiosks take up valuable floor space. Proponents assert the return on investment comes through added convenience for customers and marketing opportunities for convenience stores.
“If you’re able to have the right interface with self-checkout, it has the ability to suggest additional items, so it’s kind of a self-guided proposition, and I’ve found consumers, when they’re managing their time on their own, are more comfortable in buying more items,” explained Jeff Keune, principal consultant and chief marketing officer for 4910 Consulting.
An often-cited concern associated with SCOs is that they come with greater shrink. According to Capital One Shopping, 6.6% of Americans admit to stealing via self-checkout. Manufacturers are trying to counter theft by programming in fail-safes such as cameras catching unscanned items and smart carts.
Newer technology includes apps that allow customers to scan items and pay electronically as they go. Walkout setups require individuals to scan a credit card upon entering a retailer, while sensors and/or cameras monitor basket items and send charges to the card.
Assisted Checkout
Still, self-checkout doesn’t necessarily mean unmanned. Employees assigned to oversee these registers serve as an added layer of oversight as well as a resource for customers.
“The kiosks allow associates to shift from purely transactional tasks to higher-value customer interactions. Associates are more visible on the sales floor where they can proactively engage with customers, reinforcing trust and satisfaction,” said Randolph.
“This isn’t a staff reduction opportunity,” added Keune. “I believe it is a staff reallocation opportunity. Use that labor (that would be standing behind registers) to do the things you never have time to do or do in the way that you want — being better at stocking, having more efficient resets, having more efficient back of the house as well as a front of the house that’s cleaner more often during the hours that you need it.”
Of course, stores can’t completely exchange traditional manned registers for self-checkout. For example, California bans alcohol sales through SCO, and federal law prohibits tobacco sales without humans conducting age verification. Those regulations mandate stores adopt a hybrid strategy.
“Also, I believe there’s going to be some people who embrace the technology, and there are some who don’t want to go that direction,” said Keune. “In the end, you’re expanding your opportunities for guests to have a great experience through self-determining where they’re going to want to pay.”
That said, he cautioned businesses to carefully identify objectives when contemplating SCO technology and clearly communicate them with potential vendors when designing stations.
Randolph emphasized the need for thorough training.
“Hands-on experience enabled associates to see the importance of learning the system inside and out to resolve issues quickly and minimize customer frustration,” she explained. “Giving associates the tools at the forefront reduced resistance and increased customer satisfaction.”
