The trend towards a reduction of human interaction in commerce as a direct result of advances in digital media technologies: a case study of the grocery retail industry and self-serve checkout in Yakima, Washington.

Foundations for grocery self-serve checkout

Gas Station: Self Serve & Pay at the Pump Perceived Advantage (Customer Gratification): Speed Savings Privacy

Banking: ATM (Automated Teller Machine) Perceived Advantage (Customer Gratification): Eliminate waiting in line 24hrs access Privacy

Travel: Ticket Kiosks Perceived Advantage (Customer Gratification): Eliminate waiting in line Convenience Privacy

Universal Product Code

UPC (Universal Product Code): A universally applied code consisting of a series of 12 vertical bars affixed to consumer products or inventory items. This code is consistently readable at a variety of angles via a code scanner. The code includes information on the product’s origin, content, and pricing. The first six digits refer to the company, and the following five digits refer to that company’s particular product. There is a final “check digit” to complete the twelve digit code. Operational Definition

Yakima Washington

As of 2000 YakimaWa StateUSA Population71,8455,894,121281,421,906 Median Age35.3 HS Grad +69.5%86%80.3% Unemployed7.2%4.1%3.7% Media Household Income $29,475$45,776$41,994 Population Demographic Comparison

Grocery Retail Industry

Operational Definition Grocery Industry: “This industry comprises establishments generally known as supermarkets and grocery stores primarily engaged in retailing a general line of food, such as canned and frozen foods; fresh fruits and vegetables; and fresh and prepared meats, fish, and poultry. ” Adapted from U.S. Census Bureau, Current Business Reports, Series BR/02-A, Annual Benchmark Report

Grocery stores employ in excess of three million employees (Budd and McCall, 2001).

“The consumer makes an average of 2.2 visits to the supermarket weekly, including 1.7 visits to the ‘primary store’” (Seth, 1999)

Grocery Retail Industry 2002 Annual Sales $442,971,000,000 second only to Auto sales in U.S. retail economy (U.S. Census Bureau)

Self-serve Check-out: A grocery retail experience in which the customer collects, scans, bags, and pays for their own purchases independent from grocery retail employees. Operational Definition

Groceries: Self-serve Checkout Perceived Advantage (Customer Gratification): Eliminate waiting in line Convenience Privacy

Four Self-serve checkout lanes cost $80,000 to install, require one store employee to oversee and pay for themselves in months 1 billion self-serve transactions at grocery and other retailers in 2002, double 2001

1967 1st ATM London 1st ATM US New York 1973 UPC adopted st Scanned item (wrigley’s gum) 1951 Express Dairy self-serve, London st self-serve checkout (Publix Supermarket, Atlanta) 1993 Portable Personal Shopper (Holland) % of Grocery retailers offer self serve checkout

Benefit (gratification) for Retailer

This industry is an “intensely competitive, low margin, high- volume industry.” (Keh, 1998).

“Nationwide a person has to spend $15 on a transaction ‘for the retailer to break even’ when a cashier is involved … in California that break even is closer to $25 per transaction.”

Lower wages Lower shrinkage Increased inventory management Profit

What would convince you to do the work others normally would do and receive no pay or discount incentive?

The Future in Grocery Retailing

Adoption rate of self-serve checkout % of grocery retailers with systems installed Percent Year Projected Current Introduced

Rfid Radio Frequency Identification

Biometrics

“Scientists and engineers had accelerated research and invention to an unbelievable pace, conjuring up machines capable of taking over more and more human roles.”