News

Cash, check or finger scan?

July 21, 2004

MINNEAPOLIS, Minn. - Soon, some of the nation's biggest chains will deploy biometric scanners that allow consumers to place a finger on a scanner, enter a code and access a credit card or a checking account previously submitted to the retailer, eliminating the need to carry cash or cards, according to an article in the Star Tribune.

Designed to get customers to spend as much as possible in a short period, retailers are investing in interactive kiosks and "smart" carts.

According to the article, Supervalu Inc. said it's close to testing a system that allows customers to pay for groceries by placing a finger on a scanner. Other chains such as Albertson's and Food Lion are rolling out "smart" shopping carts that allow people to price-scan groceries as they shop.

 "If you look at supermarkets today, they are scared of Wal-Mart," said Allan Couch, director of the food and drug industry markets for NCR Corp., a Dayton, Ohio-based manufacturer of kiosks and self-checkout stations. "They can't compete on price. So [they say,] 'What else can I do? How do I differentiate from Wal-Mart?' "

Combined with order-taking kiosks and information units, all this technology isn't cheap. Installing one self-service checkout lane can cost $20,000, plus maintenance costs, according to IHL Consulting Group in Franklin, Tenn. Kiosks range from $3,000 to $7,000 a machine.

"Often, these new technologies provide a real spark to the shopping experience," said John Hauptman, vice president of Willard Bishop Consulting in Barrington, Ill. "It can be enough to tip the scales in favor of one store over another."