Once a totally novel experience, being able to buy at a click is now a regular option for most consumers. So what’s next to keep them enthralled? For many retailers, the next frontier is automated stores, which shoppers can visit to gather products on the spot, without ever having to interact with a salesperson or wait in line to check out.
Amazon is, of course, leading the way with its Amazon Go experiments. One store already is operational, in Seattle, but substantial evidence signals its intentions to add many more of these stores. The Amazon Go stores are fully automated, with cameras tracking shoppers’ every move and sensors identifying precisely which products they put in their carts.
Other U.S. retailers are adding technological advances at a slightly less aggressive pace, though the trend is clearly toward greater automation. Kroger uses sensors and data analytics to predict customer flow and reduce wait times. Various chains rely on robots to restock shelves, and self-checkout technology continues to improve.
Outside the United States, retailers are even more aggressive in their efforts, especially in China. Bingo Box convenience stores remain locked at all times, so consumers gain access by scanning a code on their phones. They select their products, then use another code that shows they have paid to unlock the doors to exit.
In a trend similar to Amazon’s, Alibaba is opening Hema stores, grocers that combine online, in-store, and delivery capabilities. If customers order online, an automated, aerial conveyor system in each store moves products from stockrooms to delivery docks, awaiting transport to their homes. If instead shoppers decide to stop in the store, they collect their purchases and use a facial recognition–based self-checkout system to complete their purchases.
Across all these various applications, there are some consistent outcomes, some of which evoke some ethical concerns. In particular, the automation of stocking and checkout means fewer jobs for human personnel. Furthermore, the technological methods required to enable this seamless process gather an unprecedented amount of consumer data; in stores, shoppers literally are being watched at every moment and in every movement.
Discussion Question:
- What technologies are bricks-and-mortar stores introducing?
Source: Nick Wingfield, Paul Mozur, and Michael Corkery, The New York Times, April 1, 2018