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What's next for self-checkout

NCR's Mike Webster looks to the future of self-checkout, with an eye on three key areas of innovation.

June 19, 2006

Self-service innovation is rapidly growing and changing with no sign of slowing down. Research indicates that customers have moved from acceptance of self-service choices to demand of the technology. Clearly, it is no longer a question of whether to implement the technology, but rather where and how to do so for the most impact on customer service and return on investment (ROI).

It is vital that retailers understand what lies ahead for this ever-evolving technology. Three key areas of innovation are leading the way in the move to a self-everything world:footprint, new technologies and ergonomics.

Smaller Footprints

Space is an important commodity in the world of retail. Fortunately, self-checkout technology is evolving to accommodate smaller footprints. Space-restricted retailers such as convenience stores, drug stores, specialty shops and department stores can now benefit from space-saving versions of self-checkout.

Current, as well as future, adopters of the technology will benefit from smaller self-checkout hardware that frees up more floor space, providing opportunities to offer better customer service and improvements to the bottom line.

Introduction of New Technologies

Radio frequency identification (RFID) and other emerging technologies have launched a new wave of possibilities for self-service solutions. Examples include:

• Enhanced payment options, including contactless (RFID-enabled) payment and fingerprint recognition, provide consumers and retailers with added convenience and efficiency
• Integrated Electronic Article Surveillance (EAS) deactivation antennas increase customer convenience by deactivating EAS tags while ensuring security for store owners
• Multiple language capabilitiesbreak down language barriers and open the world of self-checkout to customers across a spectrum of cultures

Looking to the future, RFID readers may someday be integrated with self-checkout, as well as assisted-service checkout, to read RFID tags on individual merchandise packages. Germany's METRO Group has installed self-checkout with an RFID reader in its RFID Innovation Center. In this METRO Group demonstration, the self-checkout deactivates the merchandise security function of the RFID tag on selected merchandise during the scanning process, enabling customers to exit the store without triggering a security alarm.

Ergonomic Enhancement

With consumer acceptance no longer a barrier, technology providers and retailers are focusing more attention on improving the usabilityof self-checkout solutions. Look for continuing enhancements around solution design and management, to include making the user interface even faster and easier to use. Screens will provide more advanced functionality and richer multi-media content with "multi-pathing" - a feature allowing shoppers to conduct transactions in the personalized way that seems most logical to them. Hardware design will continue to provide incremental improvements to the transaction "flow" while better assisting those with disabilities.

Where is Your Self-Checkout Headed?

It's clear that self-checkout technology is rapidly growing and evolving. For retailers who wish to stay ahead of the competition, the key to successful implementation depends on an experienced, yet innovative technology partner who knows the retail industry inside and out.

Mike Websteris vice president and general manager for NCR Self-Service. He leads all aspects of the self-service business for NCR's Retail Solutions Division, including the NCR FastLane self-checkout and NCR EasyPoint kiosk lines, as well as airport self-check-in and other travel industry solutions from Kinetics, a subsidiary of NCR, and medical self-service solutions from Galvanon, an NCR company.