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2006 North American Self-Checkout SystemsPublished by: IHL Consulting Group Published: Jul. 20, 2006 Table of Contents
AbstractPrevious research reveals that anywhere from 20-50% of the daily transaction volume and 15-35% of the daily dollar volume of some retail stores is now being handled by self-checkout machines. This is allowing the labor force to focus on other aspects of the retail operation and on the highest margin customers in the store. While self-checkout devices are often sold as a labor savings device, most retailers redeploy labor to other, more profitable areas of the store.The customer typically perceives that the self-checkout process is faster than a staffed 1) There typically is a smaller line at the self-checkout counter than the express lane, and 2) The personal involvement in the scanning process creates an active, rather than passive process and appears to make the time pass faster. The actual transaction process is faster with staffed checkout because of the experience of the checker and the avoidance of delays from the security features of the self-checkout devices. Self-Checkout technology has its roots in the ATM and pay-at-the-pump technology that has been around since the late 1960fs (though ATM purists will challenge this assertion, citing Luther George Simjianfs 1939 device as the original). In 1968 Don Wetzel, then a VP for Docutel, thought of the ATM idea while waiting in line at a bank in Dallas, and he is widely credited for being the chief conceptualist of the device that came to be known as the ATM. The first bank credited with installation was Chemical Bankfs Rockville Center branch on Long Island, which opened for service on 2 September 1969. Docutel is also credited with developing the first pay-at-the-pump device, though the Susser family (of Circle K fame) also lays claim to development work they did with IBM in 1970. Regardless of who actually started implementing self-service technologies at banks and gas stations, the idea quickly caught on, but it took nearly three decades for it to spread significantly to the supermarket. David R. Humble is credited with holding the first patent for a retail store self checkout system, but it was Productivity Solutions (PSI, Jacksonville FL) that first really put feet to the idea of self-checkout. They started development of the technology in the mid-1980fs, and they were followed by Optimal Robotics (Montreal, Canada) in 1991. Optimal, for their part, leapfrogged PSI in terms of sales to become the leading provider of this technology. PSC (Rochester NY) entered the fray in 1995 was another early (though less successful) player in this field. NCR was a relative latecomer to the self-checkout field, but by 2003 they had 61% of the total shipments. Get Full Details About This Report >> |
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