With Self-Checkout, Impulse Buys at Checkout Drop

Author:
Publish date:
Social count:
0

Shoppers spent almost $111 billion at self-checkout lanes in 2005, an increase of 35 percent from the previous year, Franklin, Tennessee-based IHL Consulting Group reported in July. But self-checkout lanes appear to be responsible for a reduction in impulse purchases of items displayed near the checkout lanes. According to IHL's survey of 533 consumers last summer, women's impulse purchases dropped 50 percent when using a self-checkout aisle, compared with a 28 percent decrease for men. Ninety-four percent of respondents to the survey said they would eventually use self-checkouts, even those who responded that they don't like them.

"Many self-checkout lines don't have impulse product racks," IHL President Greg Busek said in an interview with the Boston Patriot Ledger newspaper. "If the impulse item guys working with retailers can create more innovative displays, they can recapture a lot of those sales they're losing." Other self-checkout conclusions from the IHL report include a total self-checkout spending increase to $110.9 billion in 2005 (most industry projections estimate that self-checkout is likely to be worth $1.2 trillion by 2009), and that 18 percent of self-checkout users use self-checkout "all the time" when it is available. (Almost one-third of consumers will only use self-checkout when there is a long line of customers at a traditional staffed lane, the report said.) The average self-checkout transaction is $32.85.

Self-checkout kiosks are generally sold in groups of four at a cost of approximately $80,000. According to NCR Self- Service, it can take retailers 12 to 18 months to recover those costs. Self-checkouts typically replace three employees, whose positions can be eliminated or reassigned elsewhere in stores. Despite the projected cost savings, some major retailers such as Target have resisted replacing cashiers self-checkout.

Related

Image placeholder title

The "Other Shoe" Has Dropped

In the first quarter 2008 edition of PRI Quarterly Retail Analytics, we advanced two key positions, to wit: that the US economy entered into a recession in October-November of 2007; and that the ensuing recession would not be very deep or very long. We believe that most economists are, in a sense, like politicians. That is, neither is held to atone for their past mistakes. At PRI, we have no such luxury. Regarding our former position, we maintain our stance that the US is in a recession, despite the fact that the current business cycle may not fit that classical definition. Better than expected, yet still weak, first quarter Gross Domestic Product rose 0.6 percent on an annual basis (versus an annual rate of 2.2 percent in 2007, 2.9 percent in 2006, and 3.1 percent in 2005). The personal spending portion of GDP rose 1.0 percent in the quarter, the weakest quarterly increase since 2001. Simply, it cannot be rationally said that the US economy is healthy.

L-ACOUSTICS Spotlights Self-Powered P Series

L-ACOUSTICS is introducing its new self-powered P Series two-way loudspeaker enclosures. Currently comprised of the 108P and 112P, the new models combine the significant advantages of L-ACOUSTICS' proven coaxial point source technology with the convenience of self-powered performance and power of digital signal processing.

Tripp Lite Releases Self-Contained Portable Air Conditioning Unit

Tripp Lite's SRCOOL12K is a next-generation air conditioner designed for supplemental area cooling, emergency cooling and off-hour cooling applications. The SRCOOL12K uses environmentally friendly R410a refridgerant, which complies with EPA standards for 2010 and beyond, and is accepted worldwide. It contains zero, oz