Grocers Invest in Scan-and-Go Despite Mixed Track Record

By the Numbers

Research from “The Instant Payments Transformation Guide: Grocery, Pharmacy and Convenience Retailers,” a PYMNTS and ACI Worldwide collaboration, which drew from a survey of 300 United States and United Kingdom retailers, found that 28% of U.S. merchants, including grocers, are investing in in-app scan-and-go capabilities. Specifically, 21% of merchants plan to add the technology, and 7% intend to improve their existing offerings.

The Data in Context

Scan-and-go is far from a surefire success. Some grocers that have tried out the technology have found it effective, while others have determined it too costly to continue.

Regarding the former, the most notable example is Walmart, the largest retailer in the country, which offers the option in its app to Walmart+ subscribers. Plus, Walmart’s warehouse club chain subsidiary Sam’s Club offers the option in its app to members.

The retailer initially tried out the system in the 2010s, ending the service in 2018 after it failed to catch on. Then, the following year, Sam’s Club began testing the technology, expanding it to all the retailer’s fuel stations in 2020, the same year Walmart announced the option for Walmart+ members.

Now, the company is protective of the system as a competitive advantage, going so far as to sue BJ’s Wholesale Club for its ExpressPay option, accusing the latter of stealing the technology.

Conversely, in the fall, Wegmans, a regional supermarket chain with more than 100 East Coast stores, announced it was shutting down its SCAN scan-and-go checkout app.

“SCAN users have told us they love the app and convenience it offers,” Wegmans said in a statement emailed to PYMNTS. “Unfortunately, the losses we are experiencing prevent us from continuing to make it available in its current state. We’ve made the decision to turn off the app until we can make improvements that will meet the needs of our customers and business.”