Booming checkout-free stores space one to watch during 2022
Checkout-free stores are set for rapid international expansion in 2022, with the addition of more non-food locations, and increased competition for Amazon, says GlobalData.
Jemima Walker, Analyst in the Thematic Research team at GlobalData, comments: “As consumer demand for ‘safe shopping’ accelerates due to Covid-19, and the ROI of checkout-free tech is revealed, retailers that have already implemented this technology such as Tesco, Aldi, Sainsbury’s, and Carrefour will see their advantage eroded as competitors join the checkout-free retail race in 2022.”
Major retailers that fail to monitor this trend will find themselves falling behind, she adds.
While food and grocery retail will continue to lead the checkout-free trend, as this kind of tech lends itself well to the sector, leading mall operators such as Majid Al Futtaim will begin to experiment in non-food specialist stores.
“Leaders in apparel, health and beauty, home, and electronics retail will be closely watching the success of checkout-free food and grocery stores,” says Walker.
Challenges remain, however. According to GlobalData’s latest UK Consumer Views Survey, 55.7% of consumers are unwilling to use a checkout-free grocery store.
The greatest concern was the need to download an app and register payment details. Retailers looking to win over more consumers will need to select in-store tech providers that can deliver a convenient, frictionless experience.
“The use of Just Walk Out technology in Amazon Go stores, with the option of a unified app, credit card payment options, and biometric entry, will ensure the retail giant continues to dominate. However, other in-store tech providers have an opportunity to compete with a lower cost offering,” Walker comments.
“This can be achieved either by partnering with a widely integrated payment app platform such as PayPal or by creating a cheaper, more frictionless set-up. AiFi’s barrier free entry tech in Carrefour’s Flash 10/10 store in Paris could be a strong contender.”
