Self-checkout spending to touch $1.2 trillion by 2009

Self check-out systems are becoming popular; not so much by choice but out of compulsions of time and language. An interesting article, based on a research study conducted by IHL predicts self-checkout sales to rise to $1.2 trillion by 2009. Given acute shortage of front desk staff, Indian retail is not far away from adopting to this technology . We reproduce below relavant excerpts:

self-checkoutAmerican consumers—especially frequent fliers—are becoming quite comfortable with self-checkout systems, to the tune of a projected $475 billion (excluding gasolin) in self-checkout purchases this year, according to a new study from the IHL Consulting Group.
That’s a 47 percent increase compared with what IHL recorded last year and IHL is predicting the sharp increases will continue, with a projected $1.2 trillion in self-checkout sales projected by 2009.

But even without gasoline being included, a related factor did impact the numbers. Self-checkout has gotten to be very popular at non-grocery-chains—including Home Depot, Lowe’s, Wal-Mart and BJ’s Wholesale Club.Those chains tend to have much higher dollar purchases and that helped pushed the average transaction size from $25 in 2004 to $35 this year, Buzek said.

“Kiosks are fundamentally changing the way consumers do business,” said Greg Buzek, President IHL. “Among retailers, we are seeing anywhere from 15 percent to 40 percent of all purchases are made at self-checkout machines. Usage is even more impressive at airports, where some airlines estimate that near 80 percent of passengers are avoiding the traditional check-in process and instead using self-check-in machines.”

The IHL study pointed to several factors influencing the increases, but perhaps the least expected factor is an increase in the number of customers who speak little or no English.

“In areas that are predominantly multi-lingual, the kiosk is the thing that can help get the order right,” Buzek said, referencing French-speakers in some Canadian provinces and Spanish customers in many urban areas, especially those near the Mexican border.

The overwhelming factor in the increase is simply that customers are getting more comfortable with the technology and are therefore much more willing to use it. That comfort is especially true among frequent-fliers who have gotten used to the technology because of airport self-checkout ticket kiosks.

IHL specifically found that non-intuitive gender differences. “Women are 250 percent more likely to use (retail) self-checkout kiosks if they have already used one at the airport,” Buzek said. “Men are only about 150 percent more likely.” He said that was likely because men were generally more inclined to experiment with self-checkout.

“Consumers have become much more savvy. Their time has also become more valuable and limited, and self-service is one way they can speed along their buying experience,” Buzek said. “Retailers and other businesses are finding that self-service kiosks can significantly increase customer loyalty, as well as customer satisfaction.”

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One response to “Self-checkout spending to touch $1.2 trillion by 2009

  1. Pingback: Retail industry Blog Digest - Self-checkout spending to touch $1.2 trillion by 2009

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