Question

U.S. Supermarkets Look Beyond Standard Self-Checkout Service back in time to build cus New York-(Dow Jones) While some supermarkets are stepping tomer service, ot experience. hers see new technology as the path to higher sales and a better customer Albertsons LLC, operator of roughly 200 Albertsons stores in the southern and west elf-checkout system in the 100 stores that have them, revert- ing to traditional, cashier-run lines by August. The Boise, Idaho-based chain said its customers have missed the one-to-one interaction with cashiers. However, one of the nation's largest grocery retailers, Kroger Co. (KR), is testing a new advanced self-checkout technology that it believes will improve the customer experi- ence and help eliminate loss due to theft or mis-ringing of merchandise. Stores used to be designed to keep you there as long as possible, so that you would buy as much as possible, but, in more recent years, there has been this push to make things easier, faster, and more convenient for the customer," said Joseph Agnese, food and drug retailer analyst at Standard and Poor's. Every company wants to have a differentiator and, in this day and age, moving back to only traditional lanes could help, he added. Albertsons, which is owned by private equity firm Cerberus Capital Management LP, said it is hoping that putting the human touch back in the process by replacing machines with people will win its customers over. The company said it won't necessarily add more staff to all stores for the move, but it will add staff hours. SuperValu Inc. (SVU) which owns about 450 Albertsons stores, said it isn't planning changes to its self-checkout lanes. Kroger began testing its Advantage Checkout system in March, which is a scan-tunnel system, similar to what airline customers encounter for carry-on luggage. Customers place items on the conveyor belt, and the tunnel scans them from all directions to capture the barcodes regardless of which direction they face. The company said customers have embraced the scan tunnels, which it is testing in a few midwest locations, including its hometown of Cincinnati. The system not only decreases the potential for theft, but also will continue to provide employee interaction by having staff bagging and manning the machines. Kroger said it will continue to offer various self-checkout systems in different markets, as well as traditional cashiers, depend ing on the needs of the stores. Systems providers have been working to improve the original self-checkout machines since they were first introduced a decade ago. Today shoppers can choose from stores that offer the self checkout options as well as in -aisle scanning systems and eventually By Annie Gasparro of Dowjones Newswires 11 July, 2011

Answer 1

1) According to the above context, I do-not find Customers really find value by transacting with Cashiers during checkout. Because both Customers & Cashier have a common goal of improving the speed & accuracy of transaction during checkout.

Yes I believe Albertsons is doing the right thing by providing better quality & faster service experience. Current Customers are well informed, smart & quick decision makers for either to go for or go against a particular due to scarcity (limited amount) of time & patience.

Since in present Global Competitive Age every Customer demands the USPs/ Specialities (Unique Selling Propositions), better products, faster, simpler & effective service over its competitors for higher repeat sales & more customer loyalty. Failing to provide the said will make the Customer to move to other Competitor who provides better Experience. Hence with respect to the above context, Albertsons is making an effort to improve its Service Quality by adopting Machine Interface (self-checkout machines) to increase the speed & accuracy of transactions. This step is not only Right for both Albertsons & its Customers but also essential for the Retail Market when compared against the volume of customers/store. The time is not far when this Self-check-out Systems would be a norm (common feature) in every Big Super Market as we can clearly relate it to the Self Service Kiosk in ATMs & Gas Stations which have been accepted long earlier before Self Kiosk in Theatres & Airports.

2) No, I do-not think that Kruger scan tunnel system is an extra work for customers because as mentioned there are staff at scanning tunnels for handing (lifting (loading) & un-loading) material which does not compels customers to lift the material & place. This helping staff ensure that there is a good communication between them & the Customers & retaining the personalized (human service factor). This initiative does not drastically changes the script but ensures the better service to customers by increasing the speed & accuracy of transactions during the checkout. Since Kruger maintain a mix of Staff & Self Checking Out Systems at different Retail stores as per the needs of the customers with na attempt to offer & provide better service every time.