The onset of the coronavirus pandemic in 2020 saw retail businesses around the world bring elements of automation into their stores. Staff shortages due to illness and periods of isolation meant that store managers and owners had to reduce their reliance on staff and find other ways to keep their businesses running smoothly; automation in retail was vital.
Although most of us are now back to work and life as usual, the impact of retail automation persists. The retail experience has changed drastically, and more and more of us are expecting to see retail technology in the stores we visit.
From self-checkout kiosks to inventory management software, retail stores can bring automation into their business models in many ways. If you have questions on retail automation solutions, don’t worry — we’re here to help. This article will give you a comprehensive overview of retail automation, including what it is and how it could help your business.
Automation in retail means using technology to streamline processes in the retail industry. It’s about using automated systems to simplify or speed up elements of a business, whether on the shop floor, in the back office, or online as part of an e-commerce store.
Retail automation can encompass all areas of your retail processes. It can be simple, like installing basic machinery to perform time-consuming manual tasks. It can also be more high tech, such as using an artificial intelligence (AI) chatbot to help customers navigate your online store.
Research by McKinsey suggests that about 50% of retail operational processes can be automated — and this number is expected to grow as the technology improves. With the rise of machine learning (ML) and advanced AI software such as ChatGPT, we can expect even more reliance on retail automation in the future. For example, we’ll likely see aspects of the decision-making processes being automated.
Certain elements of retail automation sound pretty futuristic, but it’s becoming more common to encounter automation in various kinds of stores.
Amazon Go is a cashier-less grocery store that uses self-checkout machines and automated inventory management. Customers use a mobile app and personalized QR code to make purchases. Each item they take from the shelf is automatically added to their basket, and customers can pay using their Amazon accounts. It’s been an easy way for Amazon to open store branches without relying heavily on store managers or people in service roles.
Walmart is also using retail automation in many of its stores. In addition to using robots to clean the floors and scan for inventory levels, they’ve opened an “Intelligent Retail Lab” to test out new retail automation and bring digital transformation to the masses as quickly as possible.
Kroger is another brand looking at process automation. They’ve launched a plan to bring AI into various areas of their business, from marketing and analytics to “smart shelves” and grocery delivery by self-driving cars.
It’s not just large-scale grocers or multinational corporations that can bring retail automation into their stores. Small retail businesses and startups can get on board too.
Here are a few ways you can implement retail automation in your business.
One of the simplest ways to introduce automation in your store is to set up self-service kiosks. These kiosks allow customers to scan a barcode or select merchandise from a list and pay for them. The kiosks work with point-of-sale (POS) systems to process cash, credit card, or contactless payments. The POS systems also provide real-time sales data and let your store manager see what’s selling well at the touch of a button.
Automated inventory management systems are another excellent option for stores exploring retail technology. You can synchronize your POS with the inventory management software to update your stock levels after each sale. More advanced systems even have order fulfillment functionality, meaning they automatically order items that are low in stock. This can cut down on human error and ensure you have an uninterrupted supply chain.
Many retailers are also purchasing automated vending machines. These machines have sensors that detect when an item is running out. They send a notification to your cellphone so you know what needs replacing and when.
In addition to automatic systems in your brick-and-mortar shop, you can implement retail automation if you have an e-commerce store to help you fulfill your online orders.
E-commerce chatbots are common on retailers’ websites, so this is a great place to start. You can also automate your marketing processes to send regular emails to your mailing list. Sending past or potential customers automatic emails with vouchers, coupons, or deals is a great way to bring automation to your retail business.
There are several reasons to automate processes in your store.
Automatic devices, such as self-checkout kiosks, could drastically reduce your labor costs. You can operate with fewer staff members on the shop floor at any time, as customers can scan their own products and make payments themselves.
You’ll need to factor in the kiosk and POS system prices, but these don’t have to be expensive. A kiosk system could actually cost as little as $500 a year.
Self-checkout kiosks could also dramatically reduce lines or wait times in your store. If your customers can scan and pay for goods themselves, there will be shorter queues at staffed cash registers or checkout points.
Faster customer service means happier customers, and happier customers are more likely to come back to your store for a return visit.
Marketing automation provides upselling opportunities and can encourage larger purchases or orders. For example, if you run a loyalty program or regular deals, you can send automatic emails to customers with these offers to entice them back to your store.
You can also set up your online store to send discount codes to customers who don’t complete the checkout process — a 5% off or free delivery voucher might be all it takes to convert the sale.
Despite the many benefits that automation can bring to a business in the retail sector, there are a couple of downsides too.
For one thing, relying solely on machines to process purchases means shoppers get a less personal customer experience. Many customers enjoy the social side of shopping, so reducing the number of staffers they interact with can negatively impact the shopping experience. However, this is easily remedied by using a combination of staffed checkouts and self-service tills.
Another potential issue with automation in retail can come from tech problems. If you decide to rely heavily on automation in your store, you could face severe problems if you run into technical difficulties. Imagine the Wi-Fi is down for an hour or two; this could mean that your entire system is unusable. It’s worth developing a backup plan to prevent any interruptions to your workflow caused by technical issues.
As the retail automation market grows, business managers need to embrace the change and bring elements of automation into their stores. Retail automation technology can improve customer satisfaction rates and simplify various aspects of your business processes.
Self-checkout devices like KioskBuddy are an easy and affordable way to bring automation into your retail store. Customers can scan and pay for their items with just a few simple taps.
If you want to set up self-service kiosks in your store, sign up for KioskBuddy today. It’s a highly intuitive system that can simplify the purchasing process for your customers.