Wednesday, March 14, 2012

Sam's Self Checkout Review

Here one can see one of the new self checkout kiosks at Sam's Club in Washington, Pa. (One of 80 locations currently using this system)

Up to now, self checkout in a club setting has been found only at Costco.

At Costco when you  use their system, the process begins with an optical scan of the bar code on the back of your card. This can be problematic if your card has any wear on it.

Next, after scanning an item, Costco requires the member to place the item on a moving belt that weighs the item to ensure what the customer scans is what is actually being put on the belt. The problem with this system is that it is error prone when matching the weight to the bar code so one end up having to wait for a Costco team member to come over to your flashing light above the check stand to override the item.

In the end, it is easier to have a Costco employee ring up the sale at a full serve register.

The Sams's self checkout is a simpler, less problematic process.

First, the member slides their membership card through the same reader that does credit cards. This is a more reliable system than Costco's optical system.

Second, the member takes the wireless handheld scanner as seen in the picture and scans the items in their cart.  This is significantly faster than Costco as their is no requirement of placing the item on a moving belt.

Paying for the purchase is the same at both clubs. Like Costco, members who use self checkout receive a blue colored receipt. Wonder if this signals extra scrutiny at the door from the receipt checker?

Feedback from Sam's employees indicates this area is busiest on weekends with customers able to zip though checkout using this new system. Employees also volunteered that comments from customers were very positive..

What's the future of this system? According to Charles Holley of Walmart, (via Bank of America Merrill Lynch Consumer & Retail Conference) this system will be added to another 220 Sam's locations by the end of the year.

In Walmart US retail stores, self check out is going to be expanded in more stores by the end of the first quarter.

According to Charles  Holley, every second of average transaction time that Walmart saves translates to $12 million that can be passed back to customers in the form of savings (lower prices). While there is no number for the savings for Sam's it certainly is a time saver for customers.

What do you think?

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