The Checkout Revolution is Here
Checkout has long been the bane of in-store shopping experiences, marked by long lines and cumbersome processes that slow the shopper down. Many shoppers have learned to love aspects of the online shopping experience, particularly the purchase moment. Although complicated in its own right, the end of online purchases is often far faster and less rife with frustrations than in-store checkouts. But the vast majority of retail purchases in the US are made in-store, despite a fairly steady rise in eCommerce spending. This is why many retailers are reimagining the in-store experience and focusing on the checkout pain point.
Just Walk Out (JWO) is an Amazon technology which allows shoppers to authenticate through their Amazon account at store entry, thereafter automatically tracking and charging the account only for what each shopper carries out of the store. A system of cameras in the ceiling paired with strategically placed weigh sensors works extremely well – after 80 purchases in Go stores I have never had an incorrect charge. This technology has been licensed to other shops, like Hudson News at many airports, and seems like a natural fit for small-to-medium shopping trips like on-the-go meals and topping up on household staples.
Pop over to Amazon Fresh and the experience is focused on the Dash Cart, chosen because shoppers on grocery stock-up missions want to track purchases as they go. The cart automatically senses items that it’s carrying and uses the shopper’s Amazon account for secure payment. This technology brings the same speed and convenience benefits as JWO and is a more conducive fit considering the store format.
Sam’s Club has been using Scan & Go for some time, which allows shoppers to use the Sam’s app to scan barcodes as they shop, then produces a QR code for an attendant to scan on your way out. While this solution allowed shoppers to skip the checkout line, it still required active scanning by the shopper. However, the retailer just started rolling out an AI-powered solution that should eliminate receipt-checking when exiting the store.
This technology is still in its early days, and when I tried it for myself I was still stopped by an employee to scan my receipt. But the trajectory appears obvious that the retailer aims to one day eliminate that human touchpoint, which would bring their checkout and store-exit experience at parity with other retailers. Taken a step further, this technology could one day eliminate the need to scan product barcodes in the first place. This could mean a shopper would load their shopping cart and walk out of the store without scanning a single thing – much like customers are able to do today at Amazon stores.
Several Catapult clients are working on yet-to-be-announced technologies to make shopping and purchase experiences better for customers. We see a potential challenge in disparate experiences existing across retailers, making previously mundane tasks no longer feel like second nature to shoppers. This is why we’re working closely with our clients to devise optimal education and rollout strategies that balance new benefits with acceptable learning curves.
JUSTIN SUTTON
CO-FOUNDER
CATAPULT INSIGHTS