Self-Checkouts: For the Sake of Convenience

Team Information
Jamie Billinton    - jamie.billinton@hotmail.com

Krystal Huebl      - khhuebl@ucalgary.ca

Michelle Pak       - lil_strawberriee@hotmail.com

Margarette Thong   - mthong@ucalgary.ca

Technology and Problems
Technology:

Self Checkout Machines



Problems:


 * 1) Does it depersonalize shopping?
 * 2) Does it increase our reliance on technology?
 * 3) Is it taking away from people's jobs?
 * 4) What are the security issues?

History

 * In 1997 self checkout machines were first prototyped.


 * In 2003 these machines had become commonplace in super markets and one-stop shopping centers. As well, self checkouts are more recently appearing in libraries.


 * Now parts are being produced by major computer companies such as IBM.


 * There are now prototypes of machines where customers can pass through a scanner with all their items and all purchases will be scanned simultaneously and the total accounted at the end. These are in a very rough stage however, and are hoping to add more convenience to shopper’s daily lives.

How it Works



 * 1) Self checkout machines replace cashiers where one attendant can watch over six to eight machines at a time
 * 2) Patrons scan their items and type in codes for bulk foods and produce on a touch screen; these items are then weighed and priced accordingly.
 * 3) The items are then moved into the bagging area where the computer weighs them to verify that the correct item has been scanned. These weights are predetermined when the item is received to the store and are extremely accurate.
 * 4) If the wrong weight is detected the machine will alert the attendant on a main terminal screen, or with a flashing overhead light. The attendant will then have to come and manually verify your items and then type a code in to allow you to continue the process.
 * 5) Once all items are scanned the method of payment is then selected. Most of these machines allow for store coupons, cash, debit and credit cards.
 * 6) Newer versions of these machines have conveyor belts where multiple items can be weighed while being moved to the bagging area. This is convenient for shoppers with many items as they can store more purchases on the scanned side. This may add to the popularity of self checkout machines among large purchases.

Preferences
In a recent survey, 60 people were asked if they preferred to use self-checkout machines when paying for purchases, or go to a real cashier and till. The close results were as follows:


 * 44 Cashier/Till
 * 36 Self-Checkout Machines

Most people found it hard to choose, and based their decisions mainly on time available, amount of items, and the length of the lines. Customers would rather use the self-checkout machines when they have little time, few items, and when the line is short; most would choose the cashier and till when they don't mind wasting time, they have plenty of products to purchase, and when the line is shorter there than at the other checkouts.

Pros to Self-Checkouts

 * Quicker
 * More convenient
 * Keeps customer busy - This prevents the customer from noticing when time has passed
 * Allows for physical activity to be done by the customer
 * Customers must bag their own products - Some people prefer their own bagging, as they can choose which items to put in each bag and can limit the amount of bags given to them
 * Take up less room than a cashier and till - On average, 4 self-checkout machines can be put in place of 1 cashier and till

Cons to Self-Checkouts

 * Easy to make mistakes
 * Hard to get help fixing those mistakes
 * Inexperienced customers can slow down the line
 * Cannot use environmentally friendly bags
 * Easy for the machine to misread products or weights and overcharge
 * Customers must bag their own products - Many people don't like doing this or would rather have someone do it for them, and then help them to their vehicle

Issues in Society
As with all technology, there are many issues involving self-checkout machines that greatly influence society. This is a very controversial subject; depending on personal opinions, the effects of the machines may be good or bad for the public as a whole.

Depersonalizing Shopping
With a cashier and till, there is always communication happening between the employee and the customer. Studies show that communication between people is necessary in forming proper social behaviors. Interaction between strangers is especially important as it increases the person's people skills, and their ability to react properly in social situations. At a till, most customers make small talk with the cashier, or vice versa, and this provides a friendly atmosphere within the store.

On the other hand, very little communication is necessary when using the self-checkout machines. Customers serve themselves and it is possible for them to never acknowledge another human being in the store. Because customers are so self-reliant, the likelihood of the necessary communication is greatly decreased.

Some people argue that this communication is actually unimportant; one does not need to attempt conversation with other people while shopping. It is likely that although the customer does not necessarily talk directly to a cashier, there is still some sort of communication going on between strangers. Also, most stores have both self-checkout machines and tills. This allows for the customer to choose when they would like to develop their social behaviors and when they would like to have some solitude time, another necessary part of personal development. This shows that even with the new technology, shopping is not altogether depersonalized, and therefore society is still benefitting, even with the new machines.

Increase in Dependence on Technology


Self-checkout machines, although they are useful, greatly increase society's dependence on machines. Many people agree that our need for technology is getting out of hand, and if there comes a time where there is no technology, future generations would not be able to survive. The invention of self-checkouts greatly prove this theory. If they eventually replace all tills and cashiers, and there is an event that stops them from working, people would no longer be able to purchase anything. Although the machines increase our self-reliance, they also increase our need for machines, a possible downside for society.

Decrease in Employment Opportunities


Do Self-Checkouts affect the available jobs in the market?

From the Employer’s perspective ultimately self-checkouts allow for valuable re-deployment of employees to a more customer service oriented role which enhances the experience of the consumers and garners their loyalty. From obvious standpoint self-checkouts reduce the cost of labour. Two normal checkout lanes can be replaced by six self-checkouts which allow for a higher volume of customers to be processed as well self-checkouts themselves do not need to be paid in wages. Some retailers have experienced up to a 40% reduction in queue time. Employers have seen self-checkouts increase their sales by a fair margin with 20%-50% of sales coming from self-checkouts alone.

From the employee’s perspective however many have seen their hour cut to accommodate those cashiers whom have been replaced by self-checkouts. Many fear that down the road their jobs are in danger. According to CGT-FO (Confédération générale du travail – Force ouvrière) based out of Europe anywhere up to 85,000 jobs can be at risk in the next two to three years. Cynics of self-checkouts humour how self-checkouts get customers to do a cashier’s job for free.

Despite the impression that self-checkouts can lose jobs. In the US according to Jill Cashen, a spokeswoman for the United Food and Commercial Workers union in the US there has not been any widespread layoffs, it just boils down to when a cashier leaves or retires their position isn’t simply filled. Also the role of the cashier will not be eliminated anytime soon, customers have expressed preference for cashiers when they have a cart full of groceries as opposed to using the self-checkout when they have few items. Economists generally agree that automation in the job market does indeed cost jobs but some insist that self-checkouts themselves would not greatly impact cashier jobs in particular. Self-checkouts will be a five to ten year trend according to Gary Foreman a retired financial planner. Foreman claims that self-checkouts are a positive externality for consumers claiming that self-checkouts allow for a higher volume of customers through the checkouts which in turn increases sales which can suggest a reduction in food prices for the consumers. While cashier’s jobs may be a risk Foreman assures that jobs elsewhere. In the US jobs in health services and education are expected to rise by 30% over a ten year trend professional and business jobs to rise by 30% and jobs in the leisure and hospitality to rise by 25

Security Issues


Because there is not an employee to scan and bag the items, it is easier for people to steal items with self-checkout machines. This caused a need for new technology and security figures to prevent theft.

Security Risks


 * When entering in the item code, you can enter in the code for a lesser priced item, or a smaller item. The weight is mostly irrelevant as long as the item is scanned. Expensive cuts of lean steak can be scanned in as a quarter pound of ground beef. Something jumbo sized can be entered as something a fraction as big. If the item looks like the item being scanned, brand, weight, or size is often ignored altogether.


 * The customers may not scan the product at all. When scanning items, the thieves will grab 2 or 3 of the items, let one scan and place them all in the bag before being seen. They could also simply run the item over the scanner where the code cannot be read and the beeps from another station will give the checkout manager the assurance that the item was scanned.


 * When scanning products which has been bagged, some will hold the product while on the scanner, letting it register at a fraction of its true weight. The scanner is also intended to weigh items placed in the center. Placing the bulk of an item’s weight closer to the edge also misrepresents the weight.

To Prevent Stealing

Even though are many opportunities for thieves to steal, there are some very useful ways preventing stealing from self- checkout machines. Security cameras could be in installed all around the self check out machines in order to reduce stealing attempts. Hiring Security Guards in general is an effective way since guards who continually move around creates and activates a visible presence. Appropriate Staffing is important because they can properly oversee goods and customers (They may not catch all shoplifters, but they help keep honest people honest and catch some honest mistakes). Carefully articulated shoplifting polices such as signs and posters can be placed throughout the store creating awareness to the public. Also, frequently placed on high-theft merchandise are Ultra-Max anti-theft labels which trigger an audible alarm at the door if a customer tries to illegally remove a tagged product from a store.

Conclusion
Self-Checkout machines are still fairly new to the world, and have therefore not completely caught on. It is likely that as they become more mainstream, people will get more and more used to them, and grow to like them. They have very few downsides, and take up much less room and time than a normal till and cashier do. Self-Checkouts not only benefit the costumer, but also the employer; the machines allow for less workers and quicker, and thus more purchases, increasing sales and profit. All in all, self-checkout machines are, and will become, a great advantage to society.