Cashierless Checkout Is Retail’s Next Normal

The pandemic has had an irrevocable impact on in-store retail. Customers who first pivoted to new and expanded checkout options to observe social distancing measures continue to favor them. Chief among these options are self-checkout lanes and kiosks, which allow customers to scan, bag and pay for their purchases without the assistance of human cashiers. Some retailers are now dispensing with the typical shopping experience altogether by adopting checkout-free options, allowing customers to scan and bag their items and exit stores uninterrupted, with payments made via smartphone.

One study published in November found that 66% of consumers prefer self-service because it is faster and less stressful than interacting with human cashiers. Another study revealed that poor-quality human interaction was a factor, with 12% of self-checkout users saying they preferred these options because they did not like dealing with cashiers.

The “Retail Tracker®” examines the latest checkout trends and why automated technology is necessary to meet customers’ evolving demands for seamless checkout experiences.

Around the Retail Payments Space

A hybrid approach to checkout appears to be merchants’ best bet for ensuring customer loyalty. A study published in November of 4.5 billion grocery store transactions conducted by 245 million United States consumers found the highest customer value and retention rates among those who used both manned and self-checkout lanes. Retailers responding to labor challenges and consumers’ changing habits have eagerly adopted self-checkout, with these options rising 10% throughout the past five years to comprise 38% of checkout lanes at U.S. grocery stores.

Self-checkouts are not without their detractors, as consumers have cited self-checkouts as the source of minor shopper frustrations, ranging from error messages to bagging-area weight sensitivities. It was recently reported, however, that many self-checkouts are inaccessible to disabled users. Shoppers with visual impairment cannot navigate touchscreens, while users in wheelchairs have trouble reaching the screens or positioning their chairs comfortably within limited checkout spaces.

For more on these and other stories, visit the Tracker’s News and Trends section.

An Insider on Iceland’s First Cashierless Store

Self-checkouts have become commonplace in the retail world, but some stores are taking the next logical step in convenience and removing the checkout process entirely. Amazon Go stores are the most widespread example of this, but even small businesses are finding reasons to get in on the trend.

In this month’s Insider POV, PYMNTS talked with Thordur Reynisson, CEO of Icelandic grocery store Nær, about how the store developed a completely cashierless shopping experience.

Why Cashierless Checkout Is Retail’s Next Normal

As in-store shopping has resumed at full tilt following pandemic closures, retail will never be the same. After two years of integrating eCommerce into their purchasing habits, shoppers are seeking new checkout experiences offering the same speed and convenience benefits as their digital shopping journeys. Consumers in a 2022 study cited self-checkout as their most used technology for improving the physical shopping experience.

This month’s PYMNTS Intelligence explores why consumer data increasingly supports an ongoing and strong evolution toward cashierless checkout despite any momentary challenges.

About the Tracker

The “Retail Tracker®,” a collaboration with LS Retail, examines checkout trends and why automated technology is necessary to meet customers’ evolving demands for seamless checkout experiences.