The Checkout Is Changing
Over the past few months, it seems like every time you pick up an industry publication, you’re reading about a checkout disruption or a new technology that promises to change the way we pay inside convenience stores. That’s because, according to a recent report from BRP Consulting, 96% of consumers indicated that “ease of checkout and payment are important factors when choosing where to shop.”
In the past when you walked into a local store, you heard a familiar “hello” and recognized the face behind the register. It was that first impression that made a difference and kept you returning. And while hiring the right employees and engaging customers is still important, it’s no longer the main driver of where we shop.
With Americans spending billions of hours a year in lines, any way to improve the consumer's shopping experience and reduce friction at the checkout will help drive store traffic. After all, with everyone’s hectic schedules, a less-than-pleasant checkout experience will likely divert business elsewhere.
What’s New?
Industry expectations are rising and technology continues to evolve, but how do you know what innovations are best for your business? Should you invest in mobile payments through a loyalty app or other software that provides an entirely frictionless experience through scan-and-pay technology, allowing customers to skip the cashier line and use their smartphones to check out? Should you change the layout of your store and invest in self-service kiosks, or implement grab-and-go technology similar to Amazon Go’s?
Each of these options would likely require substantial capital expenditures, with grab-and-go requiring a complete re-engineering of the station, including installing a mix of cameras and shelf sensors. Sainsbury’s recently opened the first cashier-less store in the U.K. on a three-month trial period, using scan-and-pay technology.1 However, the company determined it still needs a help desk for those who don’t download the app or who want to pay directly with a credit card or cash. These models may require less human capital, but they cannot operate without employees.
Consumers are already familiar with some of these concepts—we have been using self-checkout at the pump for years, and self-service kiosks in grocery stores continue to replace traditional cashiers. But are these significant investments really going to change the bottom line?
If you have a loyalty app or data from scan-and-pay software, you can target the individual with product-specific promotions and offer instant discounts when a customer is near the store. If you’re in an area where you cannot expand your footprint, removing the counter and updating your layout may create the necessary space for additional products or adding foodservice.
Critics of these upgrades usually mention potential job losses, but these checkout improvements don’t have to replace the workforce. They could be used as a supplement to help improve the efficiency of your workforce.
With employees no longer stuck behind the register, you can optimize how labor is allocated to help accommodate the consumer and enhance the appearance of your station. Employees can be readily available when customers ask for directions or have a question about a product. In an ideal scenario, your shelves would always be well-stocked, and your restrooms would stay clean.
What About Cash?
Cash is still king. Philadelphia and San Francisco recently banned cashless stores while New York City and Chicago are debating similar prohibitions. Also, two members of the U.S. House of Representatives have introduced bills to ban cashless stores nationally.2
Massachusetts was ahead of everyone and banned cashless retail stores in 1978.3 Sweetgreen restaurants opened as a cashless model, but now all their locations are expected to take cash by the end of this year.4 Even Amazon Go has had to develop a way to accept cash at their frictionless grab-and-go c-stores.
There are a few reasons behind the cashless backlash. Consumers are becoming more protective of their privacy and don’t want their every move recorded. There are also concerns about individuals who don’t have access to credit cards or choose not to use them. Eliminating cash can help reduce shrinkage, prevent theft and speed up transactions, but based on the recent trend to ban cashless stores in some of our most populous areas, any checkout changes moving forward will likely continue to have a cash component.
Getting Creative at the Register
If investing in advanced technology doesn’t make sense for operational reasons, there are still ways to increase efficiencies and eliminate lines. For starters, you can improve the way employees use traditional registers.
On a recent trip to Arizona, I stopped at a larger convenience store where an employee was running two registers for one line. As the first customer fumbled to locate their wallet and pay, the cashier scanned the second customer’s purchase on the adjacent register. While that customer was looking for the right credit card, the employee went back to the first register and completed the transaction. The switching back and forth between registers expedited how quickly consumers exited the store, and customers were still able to interact with a helpful and friendly cashier.
As expectations continue to rise, operators should continue to evolve and pay attention to the ways stores are being modernized. They should be thoughtful in their investments to maintain the convenience in convenience stores. Customers will likely adapt to a new technology if it improves their in-store shopping experience, but be mindful that the most advanced technology doesn’t always create a better customer experience.
Each company should assess its locations individually, and make sure the site investment makes sense. An efficient, quick and convenient checkout experience is one of the best ways to keep customers coming back, which, in turn, will help keep your company healthy and growing.
3 General Court of the Commonwealth of Massachusetts 
4 CNBC
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Jonathan Graham
Vice President | Fuel Services
Over the past few months, it seems like every time you pick up an industry publication, you’re reading about a checkout disruption or a new technology that promises to change the way we pay inside convenience stores. That’s because, according to a recent report from BRP Consulting, 96% of consumers indicated that “ease of checkout and payment are important factors when choosing where to shop.”
In the past when you walked into a local store, you heard a familiar “hello” and recognized the face behind the register. It was that first impression that made a difference and kept you returning. And while hiring the right employees and engaging customers is still important, it’s no longer the main driver of where we shop.
With Americans spending billions of hours a year in lines, any way to improve the consumer's shopping experience and reduce friction at the checkout will help drive store traffic. After all, with everyone’s hectic schedules, a less-than-pleasant checkout experience will likely divert business elsewhere.
What’s New?
Industry expectations are rising and technology continues to evolve, but how do you know what innovations are best for your business? Should you invest in mobile payments through a loyalty app or other software that provides an entirely frictionless experience through scan-and-pay technology, allowing customers to skip the cashier line and use their smartphones to check out? Should you change the layout of your store and invest in self-service kiosks, or implement grab-and-go technology similar to Amazon Go’s?
Each of these options would likely require substantial capital expenditures, with grab-and-go requiring a complete re-engineering of the station, including installing a mix of cameras and shelf sensors. Sainsbury’s recently opened the first cashier-less store in the U.K. on a three-month trial period, using scan-and-pay technology.1 However, the company determined it still needs a help desk for those who don’t download the app or who want to pay directly with a credit card or cash. These models may require less human capital, but they cannot operate without employees.
Consumers are already familiar with some of these concepts—we have been using self-checkout at the pump for years, and self-service kiosks in grocery stores continue to replace traditional cashiers. But are these significant investments really going to change the bottom line?
If you have a loyalty app or data from scan-and-pay software, you can target the individual with product-specific promotions and offer instant discounts when a customer is near the store. If you’re in an area where you cannot expand your footprint, removing the counter and updating your layout may create the necessary space for additional products or adding foodservice.
Critics of these upgrades usually mention potential job losses, but these checkout improvements don’t have to replace the workforce. They could be used as a supplement to help improve the efficiency of your workforce.
With employees no longer stuck behind the register, you can optimize how labor is allocated to help accommodate the consumer and enhance the appearance of your station. Employees can be readily available when customers ask for directions or have a question about a product. In an ideal scenario, your shelves would always be well-stocked, and your restrooms would stay clean.
What About Cash?
Cash is still king. Philadelphia and San Francisco recently banned cashless stores while New York City and Chicago are debating similar prohibitions. Also, two members of the U.S. House of Representatives have introduced bills to ban cashless stores nationally.2
Massachusetts was ahead of everyone and banned cashless retail stores in 1978.3 Sweetgreen restaurants opened as a cashless model, but now all their locations are expected to take cash by the end of this year.4 Even Amazon Go has had to develop a way to accept cash at their frictionless grab-and-go c-stores.
There are a few reasons behind the cashless backlash. Consumers are becoming more protective of their privacy and don’t want their every move recorded. There are also concerns about individuals who don’t have access to credit cards or choose not to use them. Eliminating cash can help reduce shrinkage, prevent theft and speed up transactions, but based on the recent trend to ban cashless stores in some of our most populous areas, any checkout changes moving forward will likely continue to have a cash component.
Getting Creative at the Register
If investing in advanced technology doesn’t make sense for operational reasons, there are still ways to increase efficiencies and eliminate lines. For starters, you can improve the way employees use traditional registers.
On a recent trip to Arizona, I stopped at a larger convenience store where an employee was running two registers for one line. As the first customer fumbled to locate their wallet and pay, the cashier scanned the second customer’s purchase on the adjacent register. While that customer was looking for the right credit card, the employee went back to the first register and completed the transaction. The switching back and forth between registers expedited how quickly consumers exited the store, and customers were still able to interact with a helpful and friendly cashier.
As expectations continue to rise, operators should continue to evolve and pay attention to the ways stores are being modernized. They should be thoughtful in their investments to maintain the convenience in convenience stores. Customers will likely adapt to a new technology if it improves their in-store shopping experience, but be mindful that the most advanced technology doesn’t always create a better customer experience.
Each company should assess its locations individually, and make sure the site investment makes sense. An efficient, quick and convenient checkout experience is one of the best ways to keep customers coming back, which, in turn, will help keep your company healthy and growing.
3 General Court of the Commonwealth of Massachusetts
4 CNBC
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