You are viewing a read-only archive of the site that used to be symbii.com, which was active from 2005–2013
Bogey Central Easter Egg
niraj.com
A Niraj
Sanghvi
Website


Something You Might Be Interested In
A collection of funny, interesting, and crazy stories you might be interested in
   
Grocery stores getting screwed by self-checkout Money
There's an article about how grocery stores are losing potential revenue through self-checkouts. It's because without having to stand around waiting for someone to scan all your crap, you're not as tempted to buy impulse items like magazines and candy.
That's the upshot of research being released tomorrow by IHL Consulting Group in Franklin, Tenn., which provides market analysis to the retail industry and its IT vendors. According to IHL, consumers report buying junk food, supermarket tabloids and the like 45% less frequently while scanning their own purchases than when checking out the old-fashioned way.

"Retailers are being forced to rethink their merchandising at the front end as they deploy self-checkout systems," says IHL President Greg Buzek in a press release. "The impulse displays have not caught up to this new technology. By definition these are impulse items – thus they must engage the senses. Retailers such as Meijer and Kroger have adjusted by offering items such as rotisserie chickens and fresh baked breads to rely more on the sense of smell to drive sales rather than simply visuals when trapped in a staffed lane."
I think the study doesn't tell you much though. The real question is how that 45% less frequent purchase in self-checkout stacks up against more impulse buying in the regular lanes, but also takes into account the cost of the cashier's wages. It may only be $8 an hour, but I gotta think that that would tip the balance at least a little bit. Especially if there's a second person bagging...then that's double wages!

One idea could be extending the racks of impulse items past the start of the self-checkouts, since usually you have to wait in a line that starts further back if they're all occupied.

Submitted by niraj  |  3 comments

More Stories

To reply to a specific comment, find it below.
  • self checkout
    Posted by: Anonymous on Jul 26th, 2006 | 11:10am

    other POC's data is different !!

    With RFID checkout (selfcheck out), its seems that shoppers are still go thru the implusive pull from the shelve !!

    we think that the ROI's will be based time, direct costs (Clerk saving), and complete replenishment visablity and better demand forcasting...

  • question
    Posted by: Anonymous on Jul 26th, 2006 | 11:11am

    why dont you ahve a normal comments section, just like a blog ??

  • [Untitled]
    Posted by: niraj on Jul 26th, 2006 | 12:38pm

    I don't think they're saying that there isn't impulse buying going on, but rather that it's significantly reduced because the amount of time you spend standing in front of the items is reduced significantly as well. Of course, the percentage listed in the study could be fairly arbitrary, but I can see how the reduced time will mean reduced impulse purchases. But I think that the fact that you've eliminated at least one employee from a register has to count for some savings.

    I'm not sure what you mean about the commenting. I wrote all the code you see here (blog, comment system, etc.), so that's why it looks and works differently than most blogs. Member comments always take precedence over anonymous comments, but I respond to all.