Blog/Development
Autonomous Stores and How They Help Your Business
Share:
Copy Link
Praise Iwuh
October 25, 2023
It's no news that AI is gradually controlling the digital space and businesses lately, from using chatbots to assist customers to using automation tools and software to do complex tasks, save costs, and increase efficiency in the business world.
A recent advancement in AI has allowed retail stores to operate without a cashier. It's quite interesting, but businesses are taking advantage of it and using it not only for their benefits but also because it increases customers' experience and satisfaction.
What are these stores? Autonomous retail stores, also known as cashier-less stores, are places where customers buy their goods and walk out without needing a cashier to check the goods put in their bags.
If you're eager to learn about autonomous stores and their numerous benefits to your business, you might want to read this article till the end. This article will take you through all you need to know about these stores and how they can impact your business positively.
Overview
- What are Autonomous stores?
- Examples of Autonomous Stores
- Benefits of these stores to businesses
- Future of Autonomous stores
Autonomous Stores
Autonomous stores are stores where customers walk in without being checked at the cashier's point. In essence, no cashier on duty checks customers' goods before they leave. These stores make use of digital cameras and sensors to keep track of the items taken from the shelves. Each store has its app for payments, and only customers with the store's app can enter.
Recent studies have shown that, as of 2018, an estimated 350 stores in the world offered a fully autonomous checkout process. The number of stores offering these checkouts is expected to grow to about 10,000 in 2024. This shows that there is a likely chance that autonomous stores will take over traditional stores in the coming years.
How Do These Stores Work?
- Once a customer arrives at the store, they present their smartphone to the payment terminal. If these terminals have been used by the customer before, they can gain access easily because their information is securely stored. New customers need to acquire the store's app on their phones, allowing the collection of necessary details for future payments.
- Once inside, customers select products from the shelves and leave the store.
- Digital cameras are strategically positioned throughout the store, enabling sensors on the shelves to identify the items being taken.
- After customers complete their purchases, the system calculates the total cost of the goods selected, and customers receive an email notification containing the receipt and payment details.
Examples of Autonomous Stores
If you've been following along with this article and have reached this point, you might be interested in reading further. In the forthcoming sections, we will explore companies that have embraced autonomous stores and the strategies they employ to drive their progress.
1. Amazon Go
Amazon Go, an autonomous store operating in the United States, goes by the name Amazon Fresh in the United Kingdom. The first Amazon Go establishment opened its doors in Seattle and occupied 1,800 square feet. Amazon characterizes these stores as "Just Walk Out Stores."
Amazon employs technology that includes computer vision, sensors, and deep learning algorithms to make this concept work seamlessly.
As discussed above, Amazon employs the Amazon Go app for customers visiting their stores. Shoppers use their smartphones to scan the app upon arrival. Once scanned, they enter the store, do their shopping and exit. Subsequently, receipts are sent, and the corresponding charges are deducted from shoppers' Amazon accounts.
Across the United Kingdom, there are now more than 17 Amazon Fresh stores. These outlets offer a wide range of household products and an extensive selection of snacks and ready-to-eat meals.
In 2018, Nike launched "Nike's Speed Shop," named "House of Innovation 000." This six-story building covers approximately 68,000 square feet and is situated on the corner of Fifth Avenue and 52nd Street.
The Speed Shop offers a novel shopping experience with its instant checkout points. Customers make their product selections via phone calls. When convenient for them, they visit the store to pick up their goods, which are stored in designated in-store lockers labelled with their names. These lockers can be unlocked using their smartphones, allowing them to collect their items without needing verification or assistance from store staff.
Due to the large number of customers and the queues, Walmart launched a fast lane that allows customers who cannot stand the long queues to scan their products on the fast lane checkouts using the Walmart app. Payments are deducted from shoppers' credit cards, and receipts are sent through the app. Walmart's Fast Lane service is available in stores across the United States and Canada.
This innovative approach not only enhances the shopping experience for customers but also provides relief for cashiers, who would otherwise contend with long lines and frustrated shoppers.
4. 7-Eleven
Following Amazon's Go initiative, a Texas-based company called 7-Eleven has launched its cashier-less store. This store employs advanced technology to oversee purchases and the payment process. Shoppers use their smartphones to check in when entering the store, and the payment is automatically deducted from their accounts as they exit with their chosen items.
7-Eleven's cashier-less store offers a diverse range of products, including snacks, groceries, over-the-counter medications, and household utensils. Customers have reported positive experiences with this new shopping approach, finding it fast and convenient
5. Aldi Stores
Aldi also follows a similar pattern with Amazon and 7-Eleven. However, one distinct feature of the technology is its face-detection app, which prevents underage people from buying alcohol. Aldi has several physical stores all around the world that meet the needs of its customers.
Several other autonomous stores are emerging in the retail landscape, and businesses are increasingly drawn to these innovative concepts as technology advances. To read more, click on this link.
How Autonomous Stores Can Benefit Your Business
Now that you've read up to this point, you mean business! After all that is said, you might still wonder how these stores benefit you and your business. We'll be discussing these benefits:
1. It improves your customer's experience
Customers can bypass long queues following their shopping trips. This leaves the customers with a positive and seamless experience. Additionally, employees working in these stores can communicate and resolve any complaints customers might have after shopping.
This enhanced customer satisfaction and convenience often leads to customers returning, ultimately boosting your store's sales.
2. Increase the available floor space.
Since there are no checkout points, there is more space on the shelves to stock up on goods. This is especially important for small stores, where space is very minimal. It increases the number of products available for display.
3. Helps in effective inventory management
Autonomous stores employ RFID technology, which uses radio waves to recognize tags attached to items, enabling the identification of all items in the store and monitoring products running out of stock. This technology plays a vital role in inventory management and keeps tabs on individual products' expiration dates.
This approach eliminates the need for manual tracking of goods and significantly reduces the amount of paperwork that would otherwise be required in a traditional store.
4. Reduces labor costs
Autonomous stores offer customers a cashier-free experience, significantly reducing the demand for cashier staff. This ultimately reduces the challenges associated with staff training and recruitment, providing a cost-effective solution for businesses.
5. Offers 24/7 shopping
Many businesses typically operate within set opening and closing hours. Establishing a store that runs 24/7 is quite appealing to customers, as it ensures round-the-clock accessibility. This means that customers can confidently visit these stores at any hour, knowing they can obtain their desired items without waiting for traditional morning opening hours.
Are Autonomous Stores Becoming the Future of Retail?
As technology continues to progress, so do the expectations of consumers. Today's customers seek stress-free experiences and are increasingly drawn to options that can provide just that. As with the rise of websites, the growing global presence of autonomous retail establishments underscores businesses' importance in strategizing for this shift.
However, before making the leap from conventional brick-and-mortar stores to autonomous models, conducting a thorough environmental assessment and gaining insight into your customers' preferences is crucial. It is imperative to understand their desires and how these autonomous systems can be seamlessly integrated into local communities. If there is a willingness among your customer base, consider conducting surveys to gather valuable feedback and ensure you implement the right technology solutions effectively. This proactive approach will position your business for success in the evolving landscape of autonomous retail.
Conclusion
In conclusion, autonomous stores are gradually becoming the future of retail stores. Customers are seemingly enjoying the benefits it brings to businesses while also presenting various opportunities to them. The success of these stores depends on their capacity to increase customer satisfaction, provide security, and achieve cost-effectiveness, all while finding a suitable balance between automation and human interactions.
.
Related post
Recent Posts
Need help with a project?
© Wazobia Technologies 2025
Powered by:
