“You probably don’t know how much your customers want self-checkout,” says Jason Lovell, finance manager at The Merc Co+op in Lawrence, Kan.
A 2019 survey found that 60% of 5,000 respondents cited long lines as a “pain point” in their shopping experience. Another recent survey (conducted by Forbes) found that 48.7% of shoppers said they used self-checkout options “basically all the time.” During a period when many shoppers are still trying to limit their time in stores and practice social distancing, checkout is an even more significant area to consider when thinking about the customer experience.
Planning is key. The options are plenty. The initial spend is significant. Retail data trends and co-op experiences are showing that customers value having the option of self-checkout. If your co-op is considering or even just curious about self-checkout, here is some information about The Merc Co+op’s recent installation experience, as well as potential setups and important things to consider.
Before installing its self-checkout system, The Merc Co+op spent time to inform both customers and staff that the change was coming and why. The biggest selling point for the co-op is that self-checkout adds another option for transactions and is not a replacement for cashiers. Customers can choose how they want to check out. Co-ops should be prepared for both positive and negative feedback should they add self-checkout.
Given the choice of a cashier lane with no wait and self-checkout with no wait, many shoppers are choosing self-checkout. A growing number of customers are already familiar with the systems in other stores and generally know that a produce-heavy cart will probably work best with a cashier, while barcoded items are a quick self-checkout option. At The Merc Co+op, 30% of customers used self-checkout in the first week after installation, and 39% did in week two.
The cost of a basic four-lane setup averages $125,000 for the stations themselves. The Merc Co+op completed its installation in January 2022, repurposing the space from one traditional checkout lane and shrinking down an oversized customer service desk. Their configuration includes four self-checkout lanes, an attendant stand, cameras for security and scanning, and cash and card payment, as well as coupon reading. (They received 11 pallets of equipment before installation.) They also have a handheld scanner at the attendant stand for scanning large items as needed. The Merc Co+op’s setup cost $150,000 through their vendor partner, but the co-op budgeted for more. Plan for costs outside of a vendor’s quote such as electrical, internet, demolition, dumpster fees and removal of old equipment and packaging.
Add to that the internal cost of getting your pricing and POS up to speed, maintenance and training station attendants. The Merc Co+op cited produce flip charts being accurate in both pricing and items available, as well as the number of tared items, as potential pain points. The more time staff has to familiarize themselves with the system, the better.
A bonus of self-checkout systems can be internal marketing. The Merc Co+op is finding that when asked to round up for charity, 35% of customers donate from the self-checkout lanes, compared to 30% in cashier lanes. Self-checkout screens always ask customers if they wish to donate.
While we have highlighted The Merc Co+op and their recent installation with a LOC system, other POS systems and vendor partners can provide information and resources for planning and costing self-checkout configurations. NCG does not currently have a program to assist co-ops with self-checkout, but the following vendor contacts and resources are available:
ECRS
Nikki Karabinis, Business Development Executive
Phone: 828.265.2907, ext. 5124, nkarabinis@ecrs.com
www.ecrs.com
North Country Business Products
Tyler Scepaniak, Managed Services Sales Specialist
Phone: 952.300.6411, scepaniakt@ncbpinc.com
www.ncbpinc.com
STCR, Inc.
Colin Delaney, Sales Manager
Phone: 607.757.0181, Mobile: 607.743.4383, colind@stcr.com
www.stcr.com
