The Cashier-Free Trend Spreads

7-Eleven Pilots Mobile Checkout System

Standard_Market_lOn Monday, US convenience store chain 7-Eleven announced that it's piloting a new mobile checkout process called Scan & Pay at 14 of its Dallas locations. The system lets shoppers track their own items by scanning the QR code for a product with their smartphone and pay using the company's mobile app. 7-Eleven says it plans to expand the service to additional cities in 2019.

This latest move shows that cashier-free shopping is becoming a real trend. 7-Eleven joins a host of retailers including Dollar General, Kroger and Walmart's Sam's Club in the US — and many others around the world — in offering this type of experience, allowing customers to self-manage the checkout process using a mobile app. If 7-Eleven decides to quickly roll out the system to most of its stores, it could change consumer behaviour in entire countries. It has a total of 67,000 locations in 17 countries, including about 12,000 shops in North America. About half of the US population lives within a mile of one of its stores.

It should be noted that the technology used by 7-Eleven is quite different to that used by Amazon in its cashier-free Amazon Go stores. Amazon has tapped computer vision and artificial intelligence technology to completely remove tills from its shops. Consumers can walk in empty-handed and walk out with groceries without ever having to scan product bar codes — it's a truly seamless experience. Amazon has opened six of these stores, and they have become a hit with customers.

Amazon may have a very limited physical retail operation, but its influence certainly makes up for its bricks-and-mortar presence. It pioneered the concept of till-free stores, forcing retailers like 7-Eleven to respond with their own convenience stores of the future, particularly given Amazon's plans for expansion: the e-commerce giant is reportedly planning rapid growth, and could open as many as 3,000 Amazon Go stores by 2021. The cashier-free trend is something we highlighted at our recent Predictions event, where we tipped that by 2025, five percent of grocery stores in the US will be fully automated (see CCS Insight Predictions 2019 and Beyond).

Despite the rapid growth in online sales, local convenience stores still cater to the needs of millions and millions of people each day. It's a shopping format that will be difficult to replace. In fact, these and other smaller stores are one of the bright spots in the bricks-and-mortar sector. This is encouraging for 7-Eleven, which holds about 28 percent share of the US convenience store market.

Disruption is accelerating in the retail space and stores will need to change the experience they offer to keep pace with the fastest kid in the class. This means adopting technology and hiring more digital product managers, software engineers and data scientists schooled in artificial intelligence and machine learning to build a better customer experience. The shopping revolution has begun and we'll be keeping a close on eye on future developments.

This entry was posted on November 8th, 2018 and is filed under Devices. You can follow any responses to this entry through the RSS 2.0 feed or you can leave a response.

Posted By Raghu Gopal On November 8th, 2018

(There are no comments yet)
Leave a Comment

Hot News

Team Tweets

CCS Insight
Omron's HeartGuide is the latest device to blur the line between wearables and healthcare devices:…
Follow CCS Insight
Shaun Collins
RT @MarinaKoytcheva: Worth watching this session on the outlook for the digital economy at #WEF19 It may not be a humble thing to say, but…
Follow Shaun
Ben Wood
Anyone aware of any stats from insurance companies (or elsewhere) on the incidence and cost of damage caused by wat…
Follow Ben
Martin Garner
Very useful briefing just now from brett Francis @AWS on the #IoT announcements from @AWSreInvent . Good to see how…
Follow Martin
Geoff Blaber
The only thing more incredible than the 10,000 employees Amazon has dedicated to Alexa is the speed at which it’s g…
Follow Geoff
Marina Koytcheva
Worth watching this session on the outlook for the digital economy at #WEF19 It may not be a humble thing to say, b…
Follow Marina
Nicholas McQuire
Major steps in the vital march towards #mobileEdge & #CloudComputing. An important partnership from #IBM &…
Follow Nicholas
Kester Mann
RT @MarinaKoytcheva: Worth watching this session on the outlook for the digital economy at #WEF19 It may not be a humble thing to say, but…
Follow Kester
Angela Ashenden
.@slackhq has a new Chief Product Officer, Tamar Yehoshua (ex-Google) to go with its new logo: “A heartfelt thank y…
Follow Angela
George Jijiashvili
@StewartMitchell Sure - feel free to DM me if easier.
Follow George
Katie Taylor
The lifesaving food 90% aren’t eating enough of: how more fibre could prevent disease-related deaths
Follow Katie

Recent Blog Posts

Blog Post
The Right Cuff Omron's HeartGuide Tries to Steal a March on the Apple Watch... Read more
Blog Post
Microsoft Links Up with Walgreens Changes Loom over US Healthcare Market Last Tuesday, Micros... Read more
Blog Post
Fossil and Google Sign Licensing Deal Fossil to License "Advanced" Smartwatch Tech to Google Goog... Read more
More blog

Latest Company News

Blog Post
Virtual Reality Device Market Declines in 2018 But Outlook Remains Positive Research firm CCS Insight forecasts 8 million virtual realit... Read more
More news