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Kroger Testing A Self-Checkout-Less Grocery Store
But is it a benefit for customers? Actually, that needs to be two questions: Is it an actual benefit for customers, and do customers perceive it as a benefit? Indeed, the second part of that question—the perception part—trumps everything else. If it’s an actual benefit but customers don’t sense that, it’s of no value. And if there’s no value for consumers but they still somehow believe there is a benefit for them, it’s all good.
In fact, that’s much of the argument for these snaking queue approaches: Multiple customer interactions make customers feel as though associates are paying more attention to them. Is there an actual speed benefit, from the time customers enter the line to when they leave with their paid-for groceries? Based on experimentation and cashiers at the store, it appears to be an insignificant savings, when it exists at all.
Part of that is because the speed is being compared with that of self-checkout systems, the time of which is extremely variable. How fast is the customer at handling the self-checkout system? How fast were the two customers who were in front of that customer? Self-checkout is fairly fast if the customer is good at it and if no age-verification item or some other glitch crops up. Then everything freezes until an associate can walk over and fix the problem. It only takes a few of those issues an hour for the speed metrics of self-checkout to take quite a beating.
The argument against self-checkout is that it “just rewards cherry pickers” and it gets impressively slow “when someone doesn’t follow the rules,” said one retail exec involved in grocery checkout issues and who is watching the Kroger trials. “What’s especially pernicious is that [both self-checkout and express lanes] discriminate against your best customers.”
The opposite argument, though, is equally valid: For the customer who wants to just run in and grab two items, making them wait behind customers doing their full weekly shopping is also bad customer service.
Kroger has also been experimenting with a tunnel system that truly accelerates the checkout process, but that’s a much more technologically complex system than the snaking queue approach being tested in Houston.
There’s also a very strong demographic component, with younger customers—especially those who would rather not interact with people when purchasing their groceries—much more accepting of self-checkout than their elders.
In short, is Kroger backing away from self-checkout? Probably not. But is it exploring alternatives to not abandoning self-checkout as much as replacing it with something inherently better? Absolutely.
Cameron Laird contributed to this story, reporting from Houston, Texas.
-Marc
June 30th, 2011 at 10:37 am
The issue would be who buys the least at that transaction time. For example I may shop during the week and maybe spend $200. I may go in and get a sandwitch or salad of $10. What is going to happen is that I’ll be treated differently because I only spent $10. The problem I see is that if I am treated different and I do find out then I’ll just go somewhere else, we do have choice, right?
If you want to attract business you treat everyone the same.
June 30th, 2011 at 2:38 pm
I stopped going to Kroger after numerous visits and filling a basket with well over $100 in groceries. I only ended up at the checkout with one lane open and 10 people waiting. Self-checkout takes away jobs. I will never use them. Krogers in N. Texas never have enough checkers or baggers!
Market Street will put them out of business.
July 1st, 2011 at 10:43 am
@mrhedges haha you are absolutely crazy to think that just because you, one person, will stop going to Kroger that market street will put them out of business. If you have not noticed Kroger is an 87 BILLION dollar business. If they really wanted to they will just buy this Market Street and laugh and count their BILLIONS. And your theory that self checkout takes jobs is also very laughable. If there are 6 self checkout lanes you still have 1 person working and even if those self checkout line were turned into full checkout lines you could only fit 1 or 2 lanes, do the math. Kroger has over 300,000 employees I would say that they are doing ok and providing plenty of jobs all across the country.
July 1st, 2011 at 10:55 am
You can’t reward people who are checking out with the most stuff because the idea is to get people out quickly! Who would want to line up in a line that said over 30 items? As Howard mentioned, customers who may often buy numerous items also come in for a one-off, and everyone likes to get out the door quickly when they have only a couple items!
July 6th, 2011 at 3:45 am
@mrhedges please also consider the people who make the self checkout equipment and maintain/install them….. there are tons of jobs created that normally pay better then a cashiers position just to produce them. and please also keep in mind average pay for manufacturing is around $11 an hour nation wide where the average for cashier/cash handling was around $7-8. Now for where Kroger is concerned they lost my business a long time ago so i really don’t care what they do.
July 8th, 2011 at 5:51 pm
They definitely need more express lanes if they are taking away the self check out. Most of the people who use self check are the ones with the least products.
July 8th, 2011 at 7:22 pm
Though a Californian, I’d recommend
doing whatever Wegman’s does.
July 8th, 2011 at 8:58 pm
I used to go to this Kroger. No longer. I consider it to be a slap-in-the-face. Automated checkouts are great for customers but not for Kroger’s bottom line. If they want to make more money (and that is the whole point of anyone’s business) than try being abit more consumer-friendly! Shame on them for taking away convenience for their own selfish purposes. Think customer!
July 8th, 2011 at 11:51 pm
Self check is a waist of my time and and the stores money. I see a hand full (or less) of people using them and since they are not customer intuitive the self check monitoring person twiddles while I wait in line at the check out line for customer service. Put that person behind the register. Banks try to do the same thing with coming along the long line and asking for straight deposits and they get tired of me telling them to quit wasting time and get behind the counter and start waiting on customers. I want and expect service which is why I walked out of Fresh Choice and never went back when I was directed to only self checkouts. The store (if any money is saved) does not lower the cost of it’s products for me doubling as a self check operator which so far I have refused to do and always make the self check monitor run my items for me and I swipe and key in my pin number. Another source of frustration is companies eliminating customer service trying to force (encourage) customers to use self checkout. If the grocer or other retailer really wanted to promote self check out they would offer a 15 discount for self check out due to the savings associated with manpower. Of course I am hoping the store does not take me up on my suggestion because if anyone was raised in the 60’s/70’s with “Firesign Theater” and the skit of the person trying to ask the computerized president a question without getting the appropriate acknowledgment or response may also realize computers are not always the answer with the exception of Google of course. Google Bozos on This Bus Side 2 You Tube.
July 9th, 2011 at 1:28 am
When I shop I want to get in and out of the store as quickly as possible. I am NOT looking for a social experience. I will only use a human checker if I believe it will be faster. Autochecking is MORE convenient for the most part. Since Ralph’s has gone on the frequent-remodel cycle, I have become more and more reluctant to shop there — the main reason I actually do shop there is that it’s the supermarket closest to my house. Prices are no longer lowest, the aisles are so long that I can’t read the over-aisle signs at the far end, and it’s a pain to have to look for things that I USED to be able to locate easily. You can NOT make my experience a pleasure; the best you can do is not make it painful.
July 9th, 2011 at 9:15 am
Labor @ $8/hr
Cashier can handle 40 customers/hr. Actual cost per customer is 20 cents. On a self check out it probably cost about 5. Savings 15 cents per customer on labor. So how are they going to give you a 15 discount, when it’s saving them less than 1?
July 9th, 2011 at 9:51 am
Why is this an EXPERIMENT?
Stores did it by hand for years, it is not rocket science.
The self checkout is ok for small orders, but try running a bunch of produce that have no barcode or buy beer, you STILL have to show ID to the 19 year old drop out that stands there with his thumb up his wazzo while you do his job.
Kroger, just add more checkers,simple as that.
July 9th, 2011 at 10:14 pm
Suprised to hear the amount of complaints about self check outs. Home Depot now has robots to speed the experience of checking out. But I have seen so many videos of Americans setting themselves on fire at the gas station. To all the folks that find themselves as ‘part-time’ employees at grocery stores, I am curious who pumps your gas?
July 10th, 2011 at 9:02 am
the only reason i shop at kroger is for their self-checkouts.
i gave up on my old favorite grocery store because the knuckleheads manning the checkout lanes there were always loudly discussing their boss and their overtime and their work schedules — right in front of us customers!
give me an automated way to get out of the store faster any day. if kroger loses its self-checkouts, it loses me.
July 10th, 2011 at 10:00 am
I suppose some people find the self checkout way too complicated. For them it is probably faster to go through the regular check out line. And some people are very lonely so, for them, the trip to the store to chat to some employees is probably the highlight of their day. I prefer to get in and out as quickly as possible. The only bad thing about self checkout is when I have to wait for an employee to push the age verify button when I’m getting some beer.
July 10th, 2011 at 11:22 am
My experience is being a past customer of Ablertsons in Louisiana. Albertsons recently removed all their self checkout lane, since then it has been a nightmare to purchase anything there and the reason I do not shop there anymore. I guess it would not be bad if the stores would train their employees to be able to know the difference between an apple and a pineapple so that it would not take 10 minutes to verify with the manager. The lines are long and very slow moving. Its quicker and less painfull just to pay a liitle more and go to Wholefoods, and since time is money, cheaper as well, and as long as walmart keeps their selfcheck out open I’ll get everything else there.
July 11th, 2011 at 4:04 pm
I have never found a rude SCO employee at Kroger. They’re trained to be helpful and quickly responsive. On the other hand, I’ve encountered many rude full-service checkout employees. But then, I avoid SCO.
This is not about having a social experience, folks. And we’re not all old fogies! I find it very efficient to have a skilled cashier check me out while I prepare my payment method (take note, slow pokes). And they usually bag quickly. If you’re not socially-phobic, it doesn’t hurt to be pleasant to the cashier, BTW. That doesn’t mean a conversation holding up the line.
Most of all, pay these people more, and train them to be polite. The rare sulky ones should be dealt with. If your day is so busy and out of control that you don’t have time to exchange smiles, there’s something wrong with your life.
Oh, and make people buying cigarettes go to Customer Service. That’s the biggest holdup I ever see in the full-service lane!