Go Cashierless – the Cure for Grocery Stores in the Pandemic?

It has been almost two years since the COVID-19 broke out. We have been told to wash our hands, keep our distance, and reduce social contact. Many of us have to cancel trips for the next season. We are more reluctant to go to malls because of the increasing infection rate.  Restaurants, gyms, and theaters are obligated to close. While most industries suffered from losing business, grocery stores experience a surge in demand.

The current situation for grocery stores

Increasing Demand

Covid might cost us dining in our favorite restaurants. Yet it also trained many people to cook for themselves. This behavioral change benefits not only the online grocery shops but also the Brick-and-Mortar stores.

Shifting of Shopping Behavior

It used to be fun for us to browse through the supermarkets and be awed by the new products. Nowadays, we tend to go with our shopping list, grab and leave. The average basket size increased 20-30%. That is, people wait even longer on the check-out.

Shortage of Labor

Avoiding social contact and vaccinations are the main factors for decreasing the infection rate.  A job like Cashier is considered more “dangerous” during a pandemic.  Many would rather claim their unemployment benefits than keep their jobs.

How does Cashierless Technology help in the Pandemic?

Reduction of contact is no doubt one of the best benefits brought by Cashierless technology. More and more retailers have incorporated self-checkout or “Just Walk Out” technology from Amazon. Implementation as a precaution to limit human contacts in the shop so to say.

To solve the issues of increasing minimum salary and lack of labor, going Cashierless is the easy way out. Since the pandemic, people are getting more comfortable with self-checkout, or shops like Amazon Go. They offer a seamless shopping experience for Millennials who have time concerns.

Will the trend stay?

In the west, Amazon leads the way towards a more convenient future. Now many others begin experimenting with the technology. Almost every business has gone cashless in China. Payment platforms like Alipay (from Alibaba) and Wepay (from Tencent) hold 90% of the market share. Cash transactions became redundant. I believe the way to go go Cashierless is even shorter once customers are used to pay by phone. Bye to cash, hello to the future.