Due to the losses, supermarket chain Wegmans has announced that it has stopped using self-checkout apps that scan groceries while customers shop.
The company did not specify the amount of the loss and did not indicate whether it was due to theft or customers who forgot to scan certain items, but said in a statement, “We will stop using the app until we can make improvements to meet your needs.” said in of our customers and business. “
The app, known as SCAN, was introduced early in the pandemic to provide a contactless option for grocery shopping, the company said. Customers can scan every grocery item they pick up as they move through the store. To pay, scan the barcode at the self-checkout register and withdraw the total amount from the app.
In a statement, Wegmans said, “SCAN users told us they loved the app and its convenience.” can’t do it.”
Wegmans, which is popular in the northeastern United States, said it will introduce new digital ways to streamline shopping. Where the app was available and how much the company lost was unknown. A company representative could not be reached for comment.Wegmans is 107 storeswith 48 in New York, and the rest in Pennsylvania, New Jersey, Virginia, Maryland, Massachusetts, and North Carolina.
Wegmans emailed frequent users of the app and offered a $20 coupon to cover the inconvenience. Many shoppers shared their disappointment with the app’s shutdown, saying on Twitter that grocery travel has become more efficient.
Grocery stores have three main options for self-checkout systems.
One is an app like the one used by Wegmans, which scans items as shoppers pass through the store. There are also self-checkout lanes near the traditional staffed cash register where shoppers can scan their purchases and put them in their bags. Employees usually stand near these lanes so they can fix the problem.
One-third are Amazon taking the lead with physical Amazon Go stores. Shoppers add items to their cart and their account is automatically charged when they leave the store without having to stop at the checkout. This approach relies on technologies such as sensors and cameras that detect when an item is removed from a shelf and placed in a customer’s cart.
According to Syracuse University professor Ray Wimmer, the self-checkout system was developed to speed up grocery shopping. He said he has noticed an increase in the efficiency of the system over the last 20 years.
A 2016 study of US and European retailers found that retailers with self-service lanes and apps lost about 4%, more than double the industry average.
Walmart has suspended its use Scan & Go App of 2018, 4 months after introduction to more than 100 stores. According to the company, the app’s participation rate was low. Former Walmart executive Joel Larson told Business Insider that some apps have also been discontinued. for theft.
“Retailers, especially grocery retailers, are very sensitive to loss prevention issues because their business has tighter margins,” Weimer said.
Self-checkout lanes, where employees monitor customers, are likely to remain in stores, he said. However, he did not believe that he could completely replace the cashier. This was a concern when this system was launched. Self-checkout options still run into problems with scales and sensors that can stop queues, and some customers complain about the delays. I would like to avoid that possibility.
Weimer said Amazon-style systems that appear to prevent most of the losses seen in other self-checkout apps are expensive for companies to set up because of the technology required.
Reactions to self-checkout options vary by age, says Judy Mottl, editor of Retail Customer Experience, a website that covers news about commerce, technology and consumer behavior. Younger people may be more inclined to use self-checkout options, but some customers are concerned about security and privacy because they don’t know how much data is stored in options such as apps. .
More businesses tried self-checkout options when the coronavirus pandemic began, said Neil Saunders, managing director and retail analyst at Global Data Retail, which provides retail market insights. wanted minimal contact for safety reasons and avoided face-to-face interactions at checkouts. The pandemic has also increased online shopping for groceries.
According to Sanders, when the cost of living rises, retailers typically see an increase in shrinkage, or the amount of theft. Inflation accelerated in 2021, partly due to a surge in demand and disruptions in his supply chain. In 2022, things got worse as the war in Ukraine caused fuel and food prices to skyrocket.
“It’s a shame for our customers because it compromises our very fast and efficient service,” Sanders said. “But as far as Wegmans is concerned, I think they have one eye on revenue.