Cashier or Smartphone: Which Will Prevail?

The Lempert Report
September 17, 2024

Cashier or Smartphone: Which Will Prevail?

Throughout the nation, retailers are questioning the checkout experience. As food prices rose, so did the amount of theft – especially at the self-checkout. Some retailers have removed self-checkout, while others have added guards, facial recognition cameras, and even access control systems where a shopper must scan their receipt in order to have the gate open to let them out of the store.

I would argue that most consumers would rather have a competent cashier and bagger than self-checkout lanes. After all, it's the ending to our shopping trip and common sense tells us that last touch point be a positive emotional human connection and should be a pleasant experience, the one that keeps us smiling as we pay our bill and head out the door. It is why some supermarkets teach their baggers to always offer to help you carry your groceries out to your car. I have little doubt, however, that cashiers and baggers will become extinct. And not just in supermarkets.

Recently I went to my local Apple store to pick up a charger for my iPhone. I've always enjoyed visiting and shopping at Apple -- the staff is knowledgeable and helpful -- and I love the fact there is no checkout lane, and any associate can check you out right from their iPhone. Same this time. Except after the transaction was complete, the person who was helping me asked me if I had the Apple Store app installed. He then downloaded it for me and showed me how to use it -- and told me that I no longer even needed to ask for help. All I had to do from now on was just pick up any item, scan it and walk out the door. No human intervention unless I so desired. Maybe more efficient – but certainly less personal.

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Let’s head back to the supermarket.

Consumers have plenty to say about what bothers them most at the checkout. Wait time is their #1 complaint. Less-than-careful handling of merchandise by the cashier or bagger is next, followed by cashier or bagger attitude, slow transaction speed, and lack of a bagger rounding out the top five issues.

I have little doubt that these days people do trust and value their smartphone, and that makes the evolution of the checkout an easy next step for the supermarket industry.  Many shoppers are learning to appreciate the tech-savvy nature of comparing prices at nearby retailers, cellphone scanners, in-store interactive media devices, QR codes, and mobile coupons that food retailers increasingly deliver on the promise of independent, efficient and information rich store visits. What most shoppers do not realize is that supermarket retailers are faced with a problem -- the GS1 2D Sunrise 2027 standards are impending, and many barcode scanners need to be updated which is a huge investment, which is why these stores would love for us to use our smartphones to check out and minimize their upgrade costs especially at the self-checkouts.

The GS-1 2D barcode will allow shoppers the opportunity to find out nutritional, allergy and country of origin information, sourcing, receive special offers, electronic coupons, flash sales and more. A deluge of information can be encoded – typically up to 2,335 alphanumeric characters or 3,116 numeric characters depending on the size of the code on individual products. For many, high-tech adds high touch with the brand – and builds the relationship – especially with Gen Z and millennials who have grown up with mobile devices.  For others, they may still decide that the checkout experience is what they want.