Skip to main content

Will Cashier-Less Technology Stick in the Grocery Game?


Amazon is constantly spearheading the retail industry. In the recent past, their strategic business moves have stood as pivotal points in retail’s evolution.

This global giant changed the game with their speedy shipping possibilities, global accessibility, and omnichannel branding. Competitors are constantly kept on their toes as they race to keep up.

Amazon Go, the company’s latest innovation, is probably the most impactful to the omnichannel paradigm. These are brick-and-mortar stores which are 100% automated, meaning no people work there. It even goes a step further - they’re cashier-less. Aside from being completely tech-powered, they also skip the entire physical payment process.

This took modern tech innovation to a completely new level. Amazon Go has elevated the game, and competitors continue to fit themselves into this new business scheme. Now that it’s been successfully delivered to clients, it’s spreading like wildfire. Brands are applying this tactic across all boards, and it’s just entered the sphere of groceries.

Will it last - or be quick to pass? Let’s get some more insight on the topic and its relevance for contemporary grocers.

Paving the Way for Others

Amazon Go garnered tons of brand fame, but it also benefited other retailers in an incredibly valuable way. The automated shopping locations were guinea pigs for retail as a whole, giving consumers a real-life chance to try out the concept.

Studies from Digital Third Coast for Schorr Packaging Corp. polled 1,000 US consumers on their opinions of the new cashier-less shopping options. The results revealed the experiment’s success as they were incredibly positive.

75% of respondents said they were highly likely to shop at an Amazon Go, and 84% said they enjoyed the cashier-less experience more than a traditional checkout. Even more interesting, more than a quarter of the respondents said they would pay more for groceries to avoid checking out.

Zippin - The First Active Competitor

Zippin is a San Francisco based tech startup that fearlessly jumped into the cashier-less game; but with a twist - they sell groceries. Their shoppers don’t wait in any lines, they simply pick up their food and go.

Zippin’s CEO Krishna Motukuri shares on their motivation to test out this new business sector. "With annual sales of grocery stores, convenience stores and quick-serve restaurants totaling nearly $1.6 trillion in the U.S. alone, we believe there is a sizable market opportunity for us to pursue."

Potential to Grow

Although Zippin is the first company to embark on this brave journey behind Amazon, experts are expecting the trend to gain momentum. The CEO of GK Software USA, Michael Jaszczyk, believes it’s on the rise. “I fully expect this trend to take hold in due time, as their momentum is only limited by retailers’ cautious approach and need to ensure a frictionless transition. The technology itself is ready for the mainstream,” notes Jaszczyk.

However, he ushers a word of caution for other sectors, saying “Retailers must also keep in mind that this technology might not be something for all retail formats. For example, processes for weight-based items, age verification and capturing product numbers are challenges that must be solved.” But, it won’t be long until technology solves these problems, too.

What do you think about the cashier-less experience?


Comments

Post a Comment

Popular posts from this blog

4 Senior Housing Trends That Will Continue to Change the Space in 2020

Senior housing developments have been a popular conversation within the commercial real estate business. As the life expectancy of seniors keeps getting older and older, the growing elderly population faced a serious housing crisis in 2019. The 80+ population skyrocketed before CRE could keep up. And when it finally did, there was a lot of work to do. In order to accommodate today’s aging population, senior housing developments were a serious need. Even though investor demand started off slow, the sudden boom motivated commercial real estate developers and investors to take action and begin making moves. With more CRE pros jumping on the senior housing market opportunities, the competition went from 0 to 100 in no time. As a result, an amenity-war has broken out - but it’s unlike anything you’ve ever seen before. Let’s look at these 4 senior housing trends that are redesigning the senior housing module in 2020 and beyond: In-House Medical Services Seniors ...
Post a Comment
Read more

Protecting NOI in the Senior Living Space

When observing the latest trends in senior living, don’t jump to any conclusions - make sure you’ve got the whole picture first. CRE’s senior living sector is facing low occupancy rates - but that doesn’t mean the industry isn’t standing strong. When it comes to NOI, occupancy isn’t everything. While a property’s occupancy rates can act as the main contributor to net operating income, there are other elements that help fuel profits for commercial real estate investors . So what’s going on in the senior living spaces that are sparking turbulence for commercial real estate? Here’s a breakdown: Construction is Booming For the last few years, senior living spaces have been undergoing a surge of construction. Unfortunately, this elongated period of growth has taken a major hit on occupancy rates. In the five years between 2014 and 2019, national occupancy rates for senior living facilities have dropped 2.5% . As reported by the National Investment Center for Senior H...
Post a Comment
Read more

NAI Emory Hill Sells Warehouse During Pandemic

Wilmington, DE – NAI Emory Hill ( www.naiemoryhill.com ) is pleased to announce the sale of 3 James Court in the City of Wilmington, a 23,000 SF Industrial Building with dock and drive in loading. 3 James Court located off of South Market Street, between the new Christina River bridge and the 76ers field house and in a federally recognized QOZ .  Tim Plemmons and Neil Kilian, of NAI Emory Hill, represented the seller in this transaction. Senior Associate Tim Plemmons commented, “an increased demand for industrial buildings like 3 James Court coupled with a low interest rate environment makes now a compelling time for owners of industrial buildings to liquidate and get top dollar.” The quick sale of 3 James Court highlights the power of the team approach at NAI Emory Hill. Neil Kilian, Principal at NAI Emory Hill, noted, “Our high-powered marketing approach actually coincided with the start of the pandemic, nonetheless, we generated multiple competing offers which led to above...
Post a Comment
Read more