Automation in Retail Stores

In the previous few articles, we have already studied the concept of automation as it related to retail warehouses. However, it is important to realize that warehouses are not the only place in the retail sector where automation is possible.

Over the past few years, the usage of technology in the retail space has rapidly increased. As a result, it is possible for retailers to automate a wide variety of processes. Inventory management, price changes and customer service are some of the processes which are commonly automated.

In this article, we will have a closer look at some of the ways in which retail stores around the world are being automated.

Automated Check Outs

Checking out goods which have been purchased by the buyers is one of the most cumbersome processes which takes place in a retail store. It is common for customers to express dissatisfaction over the time that they need to spend in a checkout queue as well as the overall checkout experience. As a result, retailers have started automating this operation. This is done by installing a self-checkout machine where customers can use barcodes in order to checkout the goods and then they can use a credit card machine in order to pay the bill in a cashless manner.

About 60% of customers who have used these self-checkout systems feel that such systems are better since they lead to shorter lines and faster checkouts. Self-checkout systems also save retailers money since they require less space as compared to traditional checkout counters. Since rentals for a large percentage of any retailer’s expenses and the technology to build self-checkout systems is inexpensive, automated checkouts are preferred by retailers across the globe.

Electronic Shelf Labels

The labelling of products with correct prices used to be an activity which required extensive manual effort in any retail store. Retailers were losing a lot of money in the form of wages as well as due to incorrect price labels attached to products.

Electronic shelf labels deploy technology in order to resolve these problems.

Firstly, electronic shelf labels are connected to an electronic system. Hence, there is no manual intervention required to change prices. This means that the prices of goods in the store can be changed several times in a day. This may be importance for retailers in some cases wherein they want to price their products competitively based on market forces.

Secondly, electronic shelf labels also allow retail companies to reduce their carbon footprint since they no longer use paper labels. Also, since the prices are updated automatically and instantaneously, the possibility of error is almost eliminated.

In Store Navigation

Retail customers also often complain about the fact that they are not able to navigate to the correct place within the store. This is one of the reasons that many large stores have come up with retail applications which have detailed maps that help customers navigate to different places within the store.

Customers can select the product they want and will then be guided by the navigation system to reach the location using the shortest or the most convenient path.

Facilities Management

Facilities management is another area of store operations where retailers have started deploying automation. This is because facilities management also requires a lot of manpower and adds significantly to the monthly cash outflow. It is for this reason that almost all retailers have started using basic innovations such as sensor-based lights and automatic doors.

There are certain retailers who have opted for a higher degree of automation and have started using robots which can detect spills on the floor and can clean it almost instantaneously. The benefit of using this automation is that when customers visit the store, it is more hygienic and gives the shoppers a better experience.

Inventory Management

Inventory management is another functionality which is being rapidly automated by retail companies.

Retailers are spending large sums of money in order to ensure that their stores are equipped with software which can track the inward and outward movement of goods and services. This helps them create systems where goods are ordered automatically once the system falls below a certain level of inventory.

Document Processing

Retail stores receive a lot of documents which they have to manually process. Processing of such documents is also a time consuming and labour-intensive task.

Retailers around the world have started using technology which helps them automate this processing. The lowering of manual efforts related to such document processing has a direct and palpable impact on the profit and loss statement of the retailer.

Over the years, retailers have been analysing almost every labour-intensive store task very carefully. Any task which has the potential for automation is now being automated at a rapid pace. The ability to better deploy technology provides retailers with a competitive edge over their competitors.

The above examples prove that retailers have realized that it is important for them to focus on automation of in store activities as well. This is because of the fact that multiple business benefits are derived from such automation. The details of these benefits will be discussed in the next few articles of this module.