Self-checkout systems have revolutionized the grocery shopping experience, offering numerous advantages for both customers and retailers.
By empowering shoppers to scan and bag their own items, these systems reduce wait times, allowing customers to move through the checkout process with greater speed and convenience. This increased efficiency not only benefits customers but also frees up store employees to focus on tasks such as restocking shelves, assisting customers and providing exceptional service.
Moreover, the integration of artificial intelligence (AI) has further enhanced self-checkout capabilities, enabling faster and more accurate item identification, preventing fraud and optimizing inventory management
Naresh Keswani, VP of product innovation at Toshiba Global Commerce Solutions, provided The Shelby Report with the following self-checkout insights.
What are some of the latest loss prevention technologies used with self-checkouts? Is AI involved?
Shrink is a pervasive issue, and retailers understand the benefits and impact of implementing new technologies in their business, especially when supporting loss prevention measures that are critical to the bottom line.
AI is increasingly recognized for its transformative power on loss prevention in self-checkout, significantly enhancing security and the customer experience. Some of the AI-driven solutions include cameras, edge computing, product recognition and leveraging data to decipher behaviors associated with loss.
- Integrated AI-powered cameras and edge computing capabilities provide real-time monitoring and actionable insights, enabling immediate action when suspicious activities are detected. For example, these systems can provide subtle prompts to the shopper to self-correct any unintentional actions in their transaction, such as a double scan or selecting the wrong variety of produce. These systems offer a more nuanced understanding of customer behavior that surpasses traditional weight-based security systems, resulting in higher recovery rates for both intentional and unintentional shrink.
- AI-driven product recognition addresses multiple challenges at checkout, reducing loss due to error or fraud and resolving issues such as long queue lines and the need for store assistance during irregular occurrences. Product recognition speeds up the checkout process and improves labor distribution within the store.
- AI solutions also can harness a wide range of data sources to empower retailers with unparalleled visibility of trends and patterns associated with loss. This comprehensive understanding of common behaviors associated with shrink empowers retailers to optimize security measures, allocate resources effectively and implement targeted loss prevention strategies.
As retailers face emerging threats and shifts in customer behavior, they require cross-functional solutions that can solve multiple problems and rapidly adapt to changing loss drivers and shopper behaviors.
Advanced technologies with AI and over-the-air update capabilities ensure these solutions remain effective and current, securing transactions and maintaining a smooth and efficient customer experience while adjusting to ongoing needs.
Crucially, these technologies seamlessly integrate with existing environments, making adoptions straightforward and minimizing disruption to ongoing operations. Innovative AI technology is an essential strategic asset for retailers, transforming data into actionable insights and losses into profits.
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Are more of your retailer customers adding self-checkouts? Is it for labor savings, their shoppers requesting that option, or other reasons?
At Toshiba Global Commerce Solutions, we have observed an increasing number of retailers adopting self-checkout systems as part of their range of checkout options that may include cashier, Buy Online Pick up In Store (BOPIS) and others.
The key for retailers is on what fits their business, consumers and a proper implementation strategy to support associates and shoppers. The primary drivers for the continued interest in self-checkout include:
- Labor shortages: Industry analysts have cited that retail turnover rates often exceed 60 percent, according to a McKinsey & Company report from 2022. Given employee shortages, self-checkouts are an important on-the-ground strategy for retailers who may struggle to fill cashier positions. This allows staff to be redeployed to other critical store areas, improving overall efficiency and customer service.
- Customer demand: Many shoppers prefer self-checkout for its convenience and speed. Offering the option can enhance customer satisfaction and loyalty by providing a more flexible shopping experience.
- Operational efficiency: Self-checkout systems streamline the checkout process, reducing wait times and improving throughput during peak hours. This enhances the customer experience and optimizes store operations.
- Technological advancements: Integrating advanced technologies, such as AI and machine learning, has made self-checkout systems more reliable and user-friendly. These innovations have addressed many initial concerns about accuracy and ease of use, making self-checkouts a more attractive option for retailers.
Do loss prevention concerns deter some retailers from going that route?
While loss prevention concerns play a role in some retailers’ hesitation to implement self-checkout, others see the value it can bring to support a successful loss prevention strategy.
Advanced loss prevention strategies bolstered by AI technologies have shown to significantly mitigate the risk of shrink at the front end. Retailers can achieve a balance between security and customer experience by:
- Implementing user-friendly security measures: Clear signage and intuitive interfaces ensure a seamless experience while effectively preventing loss. This minimizes friction in the checkout process, encouraging customer compliance.
- Investing in advanced technologies: AI-driven systems, weight sensing technology and secure payment solutions provide robust loss prevention without compromising the speed and convenience of self-checkouts.
- Regular audits and training: Continuous monitoring and regular audits help promptly identify and address any issues. Employee training on the latest loss prevention practices ensures that staff can effectively guide shoppers through an assisted self-checkout experience.
While loss prevention is a critical consideration, technological advancements have made self-checkouts a viable and beneficial option for many retailers. By strategically implementing these technologies, retailers can enhance security and the customer experience, paving the way for a successful self-checkout adoption.
