Amazon debuted its Amazon Go concept store in 2018, demonstrating a cashierless, ”just walk out” store experience. Since then, several grocery and convenience store brands have tested the concept, exploring consumers’ willingness to engage with autonomous (or smart) checkout in order to achieve a faster, more convenient shopping experience.
While individual store setups differ, all smart checkout pilots have three things in common:
1. Customer identification – Customers must identify themselves as they enter the store or the area within the store configured for smart checkout.
Typically, they do this via a mobile app, which generates a QR code (or similar) that must be scanned to activate entry gates. Other identification methods include palm scanners, facial recognition, and swiping a store loyalty or credit card.
2. Product recognition – As customers wander the aisles, the products they take off shelves are identified in real time and added to a virtual basket which the store uses to track each customer’s purchases.
Product recognition is achieved using one or more technologies ranging from overhead cameras that send live imagery to pre-trained computer vision systems to weight sensors and RFID readers installed on shelving.
3. Automated billing – The key benefit of smart checkout is how it enables customers to completely bypass manned and self-service checkouts. To do this, stores capture customers’ payment information and automatically debit the costs of products in their virtual baskets when they exit the store, then they send digital receipts.
Beyond improving the customer experience and reducing checkout-associated staff costs, smart checkout offers a range of benefits for stores as a result of the rich data it generates about customer behaviors and preferences.
Solutions that incorporate camera vision, for example, can help retailers identify high-traffic store areas, whether customers find specific promotions engaging and where customers choose to linger, all of which can provide critical insights for store layouts and product planograms.
Identifying which products customers consider without making a purchase also allows stores to make their loyalty and promotion strategies more nuanced.