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Research: Shoppers drawn to self-checkout

There are so many instances of technology searching for users. But in the case of self-checkout, the market is growing because consumers really want it, according to new research from IDC.

July 7, 2003

There are so many instances of technology searching for users. But in the case of self-checkout, the market is growing because consumers really want it, according to new research from IDC. The reasons? Faster checkout, shorter lines and increased privacy.

Almost 70 percent of consumers in five different countries claim they are likely to use the technology that lets them scan, bag and pay for their own items, the research found. In the United States, consumers polled are just as likely to use self-checkout as they are to use pay-at-the-pump technology.

Even those shoppers who have never used self-service at the store said the option would make a difference in deciding where they shop. This means the potential for retailers to attract new customers, said Christopher Boone, IDC senior analyst for retail/wholesale vertical industry research. He added that price and location have long been the only comparison points in retail, a brutally competitive industry.

More than 40 percent of U.S. consumers said they would be more likely to head to a store that offered self-checkout. They noted that they would appreciate the technology in supermarkets, hypermarkets and department stores.

Technology for all

The penetration rate of self-checkout is higher in the United States, but it represents a small percentage of the market potential, according to Mike Webster, vice president and general manager of NCR Corp.'s FastLane. NCR's FastLane self-serve checkout is found in eight countries around the world. See related stories, "U.K retailer adds more units, tests virtual checkout," "Italian hypermarket chain intros self-checkout," "Metro Group first retailer in Germany with self-checkout," "Self-serve shopping option intro'd by NCR, Symbol." NCR commissioned the IDC research.

"As a leader in developing and deploying self-service solutions worldwide, our interest was to get closer to retailers and their customers," Webster said. "By gaining a better understanding of their needs and continually assessing how self-service technology is impacting retailer operations, we can continue to innovate in this area."

Webster said NCR will not change its business strategies based on the research, but noted that NCR expects continued expansion into new segments and markets, given self-checkout has been so well-received.

He said, "This study is an extension of our focus groups and retailer user communities. There were several new ideas we learned about in terms of the rate of implementation and store-selection techniques."

Self-checkout on NCR Corp.'s FastLane

Retailer reasons

Retailers in Europe and the United States do like the competitive edge that self-checkout affords today, but most cited improved customer service as a key driver for making an investment in the technology.

Self-checkout also offers retailers operational efficiency, according to Boone. Instead of having to pull employees from other departments to man registers at peak hours, for instance, the self-checkout lanes can take some of the burden. Staff can be used for other tasks necessary to running a store, he said.

Retailers have also noted that there is no core demographic with the self-checkout as was previously believed. Webster said shoppers of all ages are using the technology regularly, not just the younger people expected to find self-checkout valuable.

Another interesting fact with the study is that more than a third of retailers interviewed said self-checkout has decreased their loss of goods, Boone said. This is contrary to early concerns that self-checkout technology would have a negative impact on inventory shrinkage.

IDC's report, "Self-Checkout Systems: Defining Retailers as Leaders of the Pack," incorporates interviews with 5,000 consumers across the United States, United Kingdom, Germany, Italy and Australia. IDC interviewed 14 retailers in the same countries. The retailers were in various stages of implementing self-checkout.