Tesco will next week become the first UK supermarket to begin
trials of self-scanning checkouts, in an attempt to improve
customer service levels - a key differentiator in the fiercely
competitive grocery retail market.
The move, which comes a month after Marks & Spencer launched a
similar trial, could prove to be a test case for the emerging
technology, which has already achieved significant success in the
US, analysts said.
Jacqui Hendriks, research director at analyst firm GartnerG2, said
self-scanning checkouts will be a key area of IT development for
retailers in the next two years.
"Self scanning checkouts can help to beat queues and improve
inventories, if they are properly linked with back-end systems,"
Hendriks said. "Retailers will be learning from Tesco and each
other, but if they are to compete head to head they need to
differentiate."
Tesco will be trialling two different self-service checkouts, from
suppliers NCR and PSI, at stores in Leamington Spa and west London,
until March.
The tills, which link into Tesco's electronic point-of-sale system,
are programmed to recognise the barcode and weight of every product
in the store. They incorporate software that is designed to detect
any inconsistencies between what is scanned and what is in the
package.
The payment process, meanwhile, will be similar to a vending
machine, with customers able to pay with cash, credit or debit
cards and given the option of cashback, the retailer said.
Colin Cobain, UK IT director at Tesco, said customer workshops
convinced the company that self-service checkouts would be a
worthwhile investment. "Customers like it because it is fun and
quick and they have control of what they are doing," he said.
"It means we can fit more checkouts into a smaller space," Cobain
added, "and supports our 24 hour opening strategy because it means
we can have more checkouts open through the night."
But there are IT challenges. "Because there is no downtime changing
information on the checkouts has to be spot on," he said.
The project is purely about improving customer service, Cobain
insisted. "This is absolutely about customer choice rather than a
chance to cut down tills," he said.
Hendriks said self-scanning technology could boost the influence of
IT departments in retail. "The retailer's IT department will have
more of a direct effect on the consumer if technology is fully
integrated," she said.