A disclaimer...
Before I dive in, I thought it only fair to put my cards on the table - I am a passionate believer that technology and automation have an enormous role to play in the future of retail and in particular in the balancing act of delivering customer experience excellence at a cost that retailers can afford.? Equally I am resolute that we need to experiment more, learning our way forward, being prepared to undertake some things that may well not succeed in order to inform what we should do next - in summary we should learn fast, learn cheaply and learn often!?
I share this as I wouldn’t want the article to come across as me being a naysayer on technology investments.? Far from it, I share the below to start the conversation about how we ask ourselves better questions before we leap into significant investment decisions!
Checkout-Free Store Technologies: Understanding the Problem You Are Solving For
The retail world is full of big promises when it comes to technology, and checkout-free store solutions—like those from Amazon, Trigo, and AiFi—are right at the forefront. The idea? A seamless shopping experience where customers pick up what they need and walk out, no till queues, no scanning, no hassle. Sounds like a game-changer, right? Well, as we’ve seen, the journey from concept to reality comes with its fair share of challenges, making it clear that before jumping into automation, retailers need to fully understand the problem they’re trying to solve.
The Promise of Checkout-Free Technology
Checkout-free technology has been trialled by retailers worldwide, aiming to tackle several key issues:
- Eliminating Checkout Queues – The main selling point is making the checkout process frictionless, so customers can get in and out faster.
- Reducing Labour Costs – Automating the checkout process theoretically means fewer cashiers, reducing operational costs.
- Freeing Up Space – No tills mean more floor space for extra products or even smaller, more efficient store layouts.
- Enhancing Data Collection – Every item is tracked, giving retailers valuable insights into shopping behaviour without relying solely on loyalty programmes.
The Reality Check
Despite its appeal, checkout-free technology has faced some significant hurdles:
- Customer Adoption – Moving the ‘pause’ point from the till to the entrance—where customers need to scan an app or payment card before entering—can feel just as disruptive, especially for first-time users. Instead of stopping after filling their basket, they now have to stop before they even start shopping.
- Customer Experience Overlooked – Not everyone is on board. Some shoppers miss interacting with store colleagues, while others feel uneasy about the level of surveillance. If the goal is a better shopping experience, is it really delivering?
- Operational Complexity – Reports have shown that even Amazon had to rely on human reviewers to correct system errors—so much for full automation. Plus, the shift away from checkout colleagues hasn’t necessarily cut costs; instead, those colleagues now act as store hosts, guiding customers through the process and keeping the system updated as stock moves.
- Privacy and Trust – The extensive tracking required has raised concerns among privacy-conscious consumers. If shoppers don’t trust the system, they may avoid using it altogether.
Understanding the Problem Before Jumping to Solutions
Checkout-free technology highlights a crucial lesson: before investing in technology and automation, retailers need to ask themselves, What problem are we actually solving for?
- Customer Experience vs. Efficiency – Efficiency matters, but a great shopping experience is about more than just speed. Take the classic example of slow lifts (elevators) in office buildings—initially, companies thought the problem was speed and considered installing expensive new lifts. But instead, someone suggested adding mirrors near the lifts. Suddenly, people were occupied fixing their hair or adjusting their ties, and complaints about waiting times disappeared. Sometimes, the best solutions aren’t the most expensive or high-tech.
- Cost vs. Value – It’s tempting to automate for cost-cutting, but does it genuinely add value? The promise of speed and efficiency is appealing, but is it real? Can this technology also improve stock availability, inform better store layouts, or enhance merchandising?
- Scalability and Adaptability – Not all stores are the same, especially in high-cost city locations where space is at a premium. A solution that works in one format may be a costly experiment elsewhere if it’s not flexible and affordable enough to roll out across an entire estate.
Key Questions Retailers Should Ask Before Investing in New Technologies
Before diving into significant automation or technology investments, retailers need to consider:
- What specific customer problem are we solving? Are we addressing the real issue, or just a symptom of a bigger problem?
- Does this technology fit with our brand? Does it enhance our identity or clash with what our customers love about us?
- Are the long-term benefits worth it? Are we solving a short-term issue, or are we thinking ahead to future retail trends?
- Will our customers embrace this change? How do we balance innovation with the human touch that many still value in-store?
- What are the ethical implications? How do we ensure customer trust, particularly around data privacy?
- Is this scalable? Will this technology work across our entire business, or will it require constant adjustments that diminish its benefits?
Let’s Keep the Conversation Going
The experience with checkout-free stores raises bigger questions about technology and automation in retail:
- Have you seen technology or automation solutions that didn’t quite match what customers actually needed?
- What strategies have you found useful for balancing technology with customer experience?
- How do you evaluate whether a new technology is solving a real problem—or just adding a ‘wow’ factor with no real impact?
I’d love to hear your thoughts. Drop a comment below - how can ensure that innovations truly enhance, rather than complicate, the shopping experience.
CXO (Chief Experience Officer) at MetaB3E | MD at MKL CX | MBA | Top 25 CX Influencer 2021, 22, 23 and 2024 | Lego? Serious Play? Facilitator | Insights Discovery Trainer | Executive Coach | Author | NED
3 周Great debate! I’ll always go for a self scan handheld (I.e. Scan as you shop) out of choice. I actively avoided our local Morrisons for ages because they did not have this and the manned checkouts took forever. Self scan is a big step forwards in my eyes. However, and it’s a big one, self check out or self scan is only preferable over manned checkouts if they have staff on hand to support the process. Looking at several other annoyed customers who also all have red lights above their checkouts, all waiting for someone to magically appear, is frustrating beyond words. I’m all for tech and automation, but there has to be an absolute focus on the handover on machine to human, and we must ensure that when tech is implemented, that it is resourced. And resourced consistently. If we don’t, it’s pain points all round. And actually, whilst l have the floor for a moment.. why do some supermarkets remove their scan as you shop function in the evenings/nights? Again, l assume this is a resourcing issue. A 24 hour shop has 24 hour customers, and removing these functions provides an inconsistent customer journey. (Especially when us night owls are already tripping over cages in the aisles and finding whole floors closed off at night?!).
Domain Architect (Corporate Systems) at New Look
4 周Rick Watson
Argos LFC Shift Manager
4 周Really interesting debate Nigel and for me a lot of the industry can look at sports science and it’s how we transition customers from 1 shopping experience to another I think a lot of retailers are looking for the labour saving to pay for the cost of technology and for me there needs to be a longer transition plan in place especially with the various demographics in various locations . Customers need the confidence in when something is new or goes wrong is there someone there to help or to help resolve the issue and also a fallback for the retailer in that if technology goes down is there a way of still trading so the customer is not inconvenienced . Great to see everyone’s views on this next transition period of technology in stores .
Professor - TEDx Speaker - Coach - Entrepreneur - enthusiastic about creating new knowledge in service & retail technology and sharing it.
4 周Good question Nigel Blunt! FYI: We did research on this, comparing different versions of autonomous stores (different check-ins/ levels of assistance/ check-out and basket verification options). Our results show that most consumers indeed prefer a "normal" staffed store. We concluded placing an autonomous store side by side with a staffed store is not ideal. Instead, place the autonomous store in stand-alone locations where retailers often struggle to run a store profitably, e.g., at petrol stations, hospitals, hotels, university accommodations, or in the countryside. Consumers weren't opposed to autonomous stores, but technology choices matter. Indeed, as you state, consumers don't like checking in at the entrance (abandoned by Amazon). Still, the main barrier to consumer adoption was not being able to verify the basket before leaving the store. Consumers felt uneasy about this. And I recommend not viewing autonomous versus staffed stores as black & white. The question is not whether there is staff in the store, instead whether the customer can have an autonomous customer journey so most stores are gradually developing towards this anyway. Here are the main results summarized: https://www.youtube.com/watch?v=Q38NSMGBIhE
My initial thought is let's research customer experiences to each variety of tech solution. There has been plenty of differentiation on checkout-free options so let's find out in depth what worked and what didn't, setting our expectations appropriately as to how responses will vary according to a breadth of customer priorities. Fixing cost reduction as a high motivation for these solutions is pointless if customer adoption falls.