Self-Service POS: the Good and the Bad

| Monday, July 11, 2011
By Moshe Goldberg


A POS system or Point-of-Sale, is the machine used to process a retail transaction. A self-service POS is a system set up for customers to pay for purchases without the assistance of store staff. The mechanism includes a barcode scanner, touchscreen computer, payment system for all forms of payment and bagging area. The bagging area is fitted with a highly sensitive scale to verify the weight of each item registered on the scanner. If a scanned item does not match what is placed on the bagging area, the system will alert a staff member.

Obviously an advanced barcode system is required for self-checkouts to work effectively, and considering they were not perfected until the late 1980's, it seems incredible that the first supermarket self-checkout system was in use in 1992. Price Chopper Supermarkets in Clifton Park New York were proud of their "robots", and the stores soon became popular for their obviously revolutionary addition to the shopping experience. At the time, the capacity detecting scale in the bagging area was not part of the system. However there were attendants on hand to assist and prevent theft. It wasn't until 2009 that IBM requested a patent for their self-checkout system that included several sensitive scales as a part of the bagging area.

The self-checkout POS is as simple to use as an automatic teller machine, even for items without a barcode. The customer passes a barcoded item in front of a sensor, and if the sensor read the code it will play a 'beep'. The item scanned must be immediately placed in the bagging area. If the scale does not read the weight of the item, it will prompt the customer to place it in the designated area. Should the weight not match the system information for the scanned item, no other items may be scanned until the problem is remedied. The system will issue a subtle alert for a staff member to assist the customer. Once everything is scanned the customer touches a "Finish and Pay" button on the touchscreen and choose a form of payment. All manner of cards can be processed and cash can be remitted and paid out by the self-service POS. A card reader will be available, as well as a bank note reader and coin slot. As payment is processed, the touchscreen will display the transaction and balance. A receipt is printed and the purchase is completed.

The advantages to having self-checkout POS systems in a busy store are fairly obvious. Customers are free to make their purchases at their own pace, and ultimately feel more in control. They can ensure that each prices are correct, discounts are properly applied and quantities are correct. Staffing costs are reduced, even though each bank of self-service checkouts will have a remote attendant, the cost is still less than one staff member per single checkout.

Another advantage for the customer is the increased amount of physical space available with the self-service POS systems. A staffed checkout has a narrow pathway between the conveyor belt and wall backing onto the adjacent checkout. The limited space can be troublesome for customers in a wheelchair or with small children and strollers. The self-service checkouts are always in a spacious area with lots of room for movement, and the machines are lowered so those in wheelchairs can reach the terminal with ease.

Now onto the bad. Any invention has its downside and with the self-service POS they are pretty obvious. Theft will occur anywhere no matter what the technology, but with the self-service checkout the field seems free and clear to shoplifters. Bulk items can have the code for a less expensive item entered, and the system certainly will not know that. Customers try 'forgetting' to scan items and put them straight into the cart rather than on the scaled bagging area. Some even try switching price tags on purchases, perhaps not knowing the scale is specially configured for each item in the store. These are the reasons for an attentive staff member at the remote attendant post.

One other significant disadvantage is the de-humanizing experience of using a self-service checkout. In a world of billions of personality differences and sociological needs, there are bound to be people who crave and undoubtedly need the short human interaction that comes with a visit to the grocery store. The elderly often rely on their relationships with service people for companionship, and having a self-checkout system does not appeal to most. The other side of the coin is how a 'service robot' can impact individuals with anxiety. The systems may seem overwhelming, intimidating and even invasive. The elderly, those with anxiety and personality disorders will likely not choose the self-service checkouts, instead opting for a human interaction.

Despite the disadvantages, the self-service POS has officially hit the mainstream of the retail world. According to Retail Banking Research the number of self-checkout terminals will have quadrupled between 2009 and 2014, resulting in 430,000 units worldwide. Out of the 2008 count of 92,600 machines in the world, a whopping 74,000 of those were in North America. There will always be people who need human interaction in their daily travels and will likely never choose to use an automated checkout system. That is ok, because we certainly do not want our world to become wholly serviced by robots. There will always be people who will try to cheat the system and get a little extra from "the man". That is ok, because we have technology to fight theft. So, despite the good and the bad of self-service POS it is here to stay.




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