The no stop checkout: what could be its impact?

With the launch of the concept store Amazon Go – where customers can walk out of the store with their chosen grocer items being automatically charged to their bank account – the age of the no stop checkout customer experience is emerging. But what could this mean for retailers if such an approach is adopted wholesale across the bricks and mortar shopping experience? Here are some ideas…

Implementation Challenge – from what insight has been shared about Amazon Go it is understood to have taken four years to develop this unique store experience that involved integrating a range of technologies such as machine learning, image recognition and mobile. The solution looks innovative but would it be feasible for a retailer to implement across potentially hundreds of its stores? Furthermore, what kind of ROI should a retailer expect from this substantive investment in cloud and physical digital capabilities?

Threat Of New Entrants – By removing checkouts means added convenience that could be exploited by existing or new competitors. For example; a disruptor could offer a platform service that compares the price of the same products across different local completing stores to enable a customer to “optimise their shopping basket”. This indirect competitor could then buy and deliver these items for a customer removing any direct engagement with the retailer.

New Forms Of Customer Experience – An opportunity and a challenge is that no stop checkouts eliminate a touch point directly with the customer physically within the store itself (even if that process is self service). The opportunity is that this enables retail staff to engage with customers in different, delightful ways such as product demonstrations or marketing promotional events – retail as an experiential destination. However, by removing this interaction also risks diluting further the unique experience of being in-store by making customers focus more on specific products and prices than the retailer’s brand.

If you would like more information about how Sopra Steria can help your organisation benefit from digital transformation please contact the Sopra Steria Digital Practice.

Published by

Mark Howard

Mark advises on user centric digital service design & transformation with a focus on tangible business benefits realisation. His passion is helping organisations to transform how their people use digital ways of working to interact with users to deliver an seamless, integrated customer experience. Mark’s recent private sector experience includes delivery of a mobile application prototype for a European business services company and advising a major UK high street retailer about using enterprise social media tools to drive competitiveness. Mark has 10+ years consultancy experience advising blue chip Telco, FMCG, Retail and Pharma clients as well as UK Central Government. Mark holds an MBA from Open University. www.linkedin.com/in/mark-howard-mba/

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