Transcript Tesco Pilots Mobile Self-Scanning - ecr-shrink

TESCO PILOTS MOBILE SELF-SCANNING
Presented by:
Bryan Roberts
January 2014
Background
After Sainsbury’s launched a two-store pilot of smartphone scanning in two stores
in 2013 (now a four-store trial), Tesco followed suit in 2014, launching a Scan As
You Shop Mobile (SAYSM) pilot in its Cheapside Metro store in January.
The pilot is set to run until Friday 14th March 2014, with selected Clubcard holders
invited to participate in the trial phase.
Tesco states that: “this is a test utilizing new systems and techniques, consequently
there is a possibility of unscheduled interruptions to the service.”
Kantar Retail was invited to use the service a few days after launch, and here we
present our observations, together with some implications for suppliers.
Source: Kantar Retail
© Copyright 2013 Kantar Retail
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Getting started…
After downloading the app, shoppers need to register, by pressing the “Shop Now” button
followed by the “Register” button.
Shoppers then enter their e-mail address and Clubcard number (and choose a password.
Source: Kantar Retail Store Visit
© Copyright 2013 Kantar Retail
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…and logging in
When shoppers arrive at the store, there
are two ways to log in:
1) If they have allowed location services
on their device, all they need to do is
start the app, press “Shop Now” and
confirm their location
2) If they have not allowed location
services, they need to scan the login
code at the entrance. This is to be
found on the side of the new checkout
area
Source: Kantar Retail Store Visit
© Copyright 2013 Kantar Retail
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Distinct bags for SAYSM customers
The check-in QR
code is located at
the front of the
store, adjacent to
the two checkout
touch-screen
kiosks for SAYSM.
SAYSM customers
are directed to use
one of the special
yellow carrier bags
provided at the
new checkout
area, rather than
using their own
bag. These enable
Tesco staff to
identify shoppers
as SAYSM
customers.
Source: Kantar Retail Store Visit
© Copyright 2013 Kantar Retail
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Shopping
Once logged in, a shopping cart opens, enabling shoppers to scan items as they complete
their shop. As each item is scanned, a list and running total appears on the screen. After
scanning, the shopper places each item in their yellow shopping bag. The system is
designed primarily for shoppers with a small number of items.
Source: Kantar Retail Store Visit
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Unwanted items?
If shoppers change their minds, they can rescan an item to remove it from the shop.
Rescanning is important as it averts shoppers deleting an item from their phone but not
removing the item from their bag, intentionally or unintentionally. Shoppers can also
remove an entire shopping trip by swiping upwards on their screen.
Source: Kantar Retail Store Visit
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Proceeding to checkout
Once shoppers have completed their selection and scanned their final item, they can hit
‘finish’ on their phone. The final screen shows the total spend and any multi-buy savings.
Source: Kantar Retail Store Visit
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8
Proceeding to checkout
If an item requires weighing, shoppers can take the item to the checkout area so that it can
be weighed at the end of their shopping trip. The item is placed on the scales, with
shoppers selecting the correct product from the on-screen picklist. A barcode label is
printed that can then be scanned using either the phone, or the scanner at the checkout
Source: Kantar Retail Store Visit
© Copyright 2013 Kantar Retail
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Checkout
Customers then proceed to the checkout touch-screen kiosks and scan the QR code to
complete the shopping process. The shopper enters their chip & pin payment card as
usual.
Source: Kantar Retail Store Visit
© Copyright 2013 Kantar Retail
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Observations
The Scan as you Shop Mobile system being piloted by Tesco is rather impressive.
It is a very smooth and intuitive system and offered a genuine sense of
convenience.
Unlike the Sainsbury’s pilot, it offers separate checkout for users, meaning that the
system delivers on its goal of expediting the shopping trip and easing congestion in
busy stores. Another bonus is that the shopper’s loyalty card data is embedded in
the app, removing another layer from the checkout process.
The problems we encountered (e.g. glare when trying to scan barcodes on bagged
SKUs) are not substantial, and are encountered during a standard self-checkout
process anyway.
This innovation is ideal for small basket convenience trips – it would be interesting
to see it in action in an Express environment too.
Source: Kantar Retail
© Copyright 2013 Kantar Retail
11
Implications
Possibly bad news for impulse category suppliers, as this innovation will mean less
footfall through manned tills with full impulse merchandising and through selfcheckouts with partials impulse merchandising.
Early days for the trial, clearly, but longer term, this type of technology could well be
used for ultra-targeted promotions through pinpoint geolocation.
With its advantages over the Sainsbury’s iteration of smartphone scanning,
combined with other innovations such as card-only self-checkout, it would appear
that Tesco is looking to increase its advantage in c-store retailing over its main
multiple competitor. This would suggest that Tesco might remain partner of choice
for shopper marketing endeavours in the UK convenience market.
Source: Kantar Retail
© Copyright 2013 Kantar Retail
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[email protected]
@BryanRoberts72
24-28 Bloomsbury Way
London WC1A 2PX
UK
+44 (0)207 031 0272
www.KantarRetailiq.eu
© Copyright 2013 Kantar Retail