You walk into a grocery store, pick up a head of lettuce, a package of meat and one of those half empty bags of chips, and leave without going through a cashier.
Another science fiction fantasy?
Nope. It’s happening at a number of stores in Canada as this is written.
These are stores that have adopted the Aisle 24 system for a cashier-less shopping experience.
The process is quick, convenient and will allow store managers to run the operation by computer.
Users of Aisle 24 stores download an app from the Aisle 24 website and register their debit and credit cards on the app.
When they go shopping the bar codes on products read their mobile device (phone) and automatically deduct the amount from their account. No paper, no employees needed.
Developed in 2015 by two brothers and one brother’s wife to make buying easier, the Ontario-based business has 16 locations in Ontario and Quebec with seven more opening soon.
Plans are for 40 locations by year end targeting Vancouver, Edmonton, Calgary and Halifax.
The operation seems to focus on switching grocery stores and convenience outlets.
The stores are equipped with cameras and digital equipment throughout. Theoretically, few employees will be needed in each unit.
The Aisle 24 system handles procurement from approved suppliers, purchasing and inventory.
Data, including customer feedback, is fed to the store owners so they can better determine operations.
Each location is a franchise paying six per cent of sales in royalties and 1.5 per cent for advertising.
A franchise up to 999 square feet costs between $175,000 and $225,000 while larger stores range between $275,000 and $450,000.
Amazon unveiled a similar cashier-less concept a few years ago costing $240,000 US.
The franchise price seems hefty. If a store can save the cost of 10 employees making $15 an hour and benefits the system will pay for itself in three to five years then offer handsome profits.
The big question with Aisle 24 revolves around prevention of shoplifting, aka security.
Certainly, employee theft should be near zero. That’s half the “shrinkage’’ as the industry calls these losses.
The plethora of cameras and surveillance systems are supposed to deter shoplifters.
This new system looks to make inroads into retailing at a time when some retailers are dumping self-checkout registers to reduce losses from customer theft by not scanning items.
Will adoption of cashier-less stores be as rapid as adoption of ATMs in the banking system?
Ron Walter can be reached at ronjoy@sasktel.net
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
