The Future of Checkout 2022 - Sweets and Snacks Expo
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The Future of Checkout 2022
The pandemic has changed how we shop and transact
• Shopper expectations
have shifted
• Retailers have
significantly more
challenges to manage
• Demand for self-
service and
frictionless checkout
technology has
accelerated
In-store, shoppers looked to minimize time and interaction
• Less trips but bigger
baskets
• Move in and out of
the store quickly
• More personal space
and less interaction
in-storeMeanwhile, eCommerce has grown significantly
In 2021, shoppers spent
$982.3 Billion
in MULO+eCommerce
+4.9% vs YA
eCommerce has a
19.9% $ share
+2.5pts vs YA
Source: IRI MULO + eCommerce 52 w/e 12/26/21Retailers continue to face COVID-related challenges
What do you see as the biggest challenge to
your business in 2022?
Continued
COVID
issues
11%
Competition
12% Supply Chain
Issues
40%
Labor
38%
Source: Supermarket News 2nd Annual Retailer Expectations Survey January 2022As a result, Self-Checkout installations have accelerated
Global shipments of self-
checkout machines increased
by 25% in 2020
Installations are expected to
grow in the US by 178%
in the next 2 years
Source: Retail Customer Experience, Self-Checkout Machine Systems Jump 25% in 2020; December 2, 2021
Source: IHL/Intel Consumer Survey 2021 of FDCM retailersShoppers want choice in transaction experience in store – especially
non-traditional
Desired checkout experience:
Most wanted checkout experience by generations
Traditional
Non-Traditional
Self-checkout
Scanning/Paying with phone
No checkout in store
Scan/Pay with store's device at
checkout
Phone scan/pay at checkout
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Baby Boomers & Seniors Gen X Bridge Millennials Millennials Gen Z
Source: PYMNTS.com Today’s Self-Service Shopping Journey Grocery ResultsSelf-service has become ubiquitous across many areas of life for
consumers
Shoppers see 2022 as the
“tipping point”
for self-checkout –
most used technology in physical
retail
Source: ChaseDesign 2022 Shopper Sentiment Survey; Path to Purchase IQ; 4/26/22In the Grocery channel, 33% of consumers say they used Self-Checkout
in their latest purchase
Checkout Type for latest purchase in Reasons for Using Self-Checkout
Grocery
Faster 68%
Mobile No waiting 51%
Device
7% Regularly use 35%
Prefer to bag products 27%
See prices better 23%
Self-
Checkout Social distancing 19%
33%
Cashier Privacy 18%
60%
Prefer not to interact with
employees
17%
Only option available 6%
Other 2%
Source: PYMNTS.com Today’s Self-Service Shopping Journey Grocery ResultsActual usage of self-checkout varies by retailer
% Transactions by Lane
Retailer A 48.3% 51.7%
Retailer B 36.4% 63.6%
Retailer C 55.5% 44.5%
Retailer D 66.3% 33.7%
Retailer E 41.4% 58.6%
Retailer F 67.6% 32.4%
Cashiered lanes SCO
On average, 59% of shoppers used
cashiered lanes and 41% used self-checkout
Source: IMC Proprietary Retailer Research 2021-2022Self-checkout is closing the gap with cashier lane in % of transactions
% of Shoppers by Lane Type
80%
70% 66.1%
60% 53.3% 51.9%
50%
46.7% 48.1%
40%
30% 33.9%
20%
10%
0%
2019 2020 2021
Cashiered SCO
Shopper transactions show the shift in
increased usage by 14pts since 2019
Source: IMC Proprietary Retailer Research 2021Availability & familiarity are the top reasons for shoppers to use
cashiered lanes
Reasons for Using Traditional Checkout at
Grocery
Only Option 33%
Regularly use 40%
Faster 35%
Better to interact with
25%
employees
Don't want to bag 15%
Other 8%
Source: PYMNTS.com Today’s Self-Service Shopping Journey Grocery ResultsThere are still some barriers to self-checkout usage to address
60% of consumers are less likely to use
when purchasing more than 25 items
52% of consumers purchasing fresh
produce
50% of age-restricted items are less
likely to use self-checkout
Source: PYMNTS.com Today’s Self-Service Shopping Journey Grocery ResultsMore self checkout registers solutions are being implemented to
solve for larger baskets
Belted Self-Checkout Convertible Lanes XXL self-checkoutSelf-Checkout is expanding availability in the Convenience channel
And across other small format retailers
Consumer mobile checkout is also growing in interest and
implementation
63.4% of respondents
agreed that they would prefer
to checkout of a store using
only their own smartphone to
scan and purchase items.
Consumer mobile checkout
expected to grow by
300% in the next 2 years
Source: Retail Customer Experience, “The State of Self-Service Checkout: 6 Key Takeaways, December 31, 2021
Source: IHL/Intel Consumer Survey 2021 of FDCM retailersRetailers are leveraging self-service to address labor challenges
“Every 1-percent shift to self-
checkout is $1 million in labor
expense that could go back into
the store for other purposes"
Dave Wilkinson, President NCR
Source: Convenience Store News: Technology Experts Decode the Year’s Top C-store TrendsAnd spending more dollars toward future retail innovation
Higher IT Spend for Innovation
2018 2022
2… 37%
Source: IHL/Intel Consumer Survey 2021 of FDCM retailersShoppers will add incremental items to Click and Collect orders
When picking up orders in-store
74% of shoppers
are picking up additional items
How often do you pick up additional
items when pickup order
Every time 16%
Most of the time 30%
Some of the time 28%
Rarely 19%
Never 7%
Source: Path to Purchase Institute, Evolution of the In-Store Shopping Experience Jan 2022
Q: When you make purchases online from Grocery, how do you get your items?
Q: When you pick up your orders in store, how often do you purchase additional items?Consumers want better omnichannel experiences - more experiential
and less transactional
Today’s consumers are more
experiential and are used to more
engaging digital experiences
1 in 4 have shopped in a virtual
store with 70% having made a
purchase
Source: The Metaverse Mindset: Consumer Shopping Insights; Kantar December 2021The e-Grocery experience is still very transactional
Traditional online
Retailers and shopping
brands areinterface
beginning to reimagine the experience
VS.For the foreseeable future, the store will continue to be the primary
shop for consumables
Stores will, however,
transform to reduce
friction for the shopper:
Better omnichannel
integration / more
seamless experience
More automation
More touchless options
of all kind
More streamlined
operations
Source: ChaseDesign 2022 Shopper Sentiment Survey; Path to Purchase IQ; 4/26/22For checkout, computer vision / AI driven technologies reduce friction, speed up the transaction process, and nearly eliminate wait times
Mashgin [mash-jin ] A Mash-up of General Intelligence used to quickly identify items for sale
World's Fastest Self-Checkout
Scan multiple items < 1 sec
4x faster throughput than legacy POS
The Most Vetted AI Proven ROI
Checkout Solution 20% increased revenue
Over 1,000 locations and lift
40 million transactions 34% increased
transaction volume
Truly Touchless
COVID-ready fully Backed by the Best
touchless transactions Y Combinator, Matrix
trusted by hospitals Partners, & NEA
nationwide● 32% of shoppers will
change retail locations in
response long lines
The Current State ● 11% will abandon a trip
Of Checkout completely
(in the physical world) ● 6M retail workers quit in
2021
● Average Traditional SCO
takes 85 seconds
*Consumers Cringe at Slow Checkout,
Forrester 2018● Instant Item Recognition
● Checkout in 5 seconds
● Fast, Adaptable Install
● Works with Packaged Goods,
Produce, & Plates
● Add items system-wide in 1
minuteMashgin Awards
Who Uses Mashgin?
Computer Vision Recognizes OPEN PRE- CPG ITEMS PLATES PACKAGED
Mashgin in Action
What Using Mashgin Is Like
ROI for Touchless Self-Checkout
● 4X Faster Transactions
Shorter Lines
Shorter Lines
●
Better Bottom Line ● Increased Participation
● 20-400% More Revenue
● Up to 20% larger● 1 Cashier, many Lanes
Faster Checkout ● Reduce Overtime
Fewer Cashiers
● Less Part Time
● More Efficient Staff● 80% Prefer Mashgin
A Better
100% Say it’s Faster
Experience ●
Customers Love Mashgin ● 99% Say it’s easy to use
● 88% return < 30 daysWhat The Rise of Self-Checkout Means for Impulse Purchases
● Promotions at the Kiosk
● Predictions based on cart &
SCO & Impulse loyalty
What’s Next? ● Top impulse items near
register
● New layouts and staff
prioritiesWhat Can Retailers Do to Maximize Self-Checkout?
● Choose High Velocity
Locations
Retail
Optimization ● Educate Shoppers Early
Get the most out of Mashgin ● Get Integrated
● Train Your TeamWhat Can Brands Do Next?
● Get a Mashgin Kiosk at HQ
How Brands Can
Scan products after
Help
●
production or a packaging
Make Products Mashgin Ready change
● Offer “Mashgin Ready”
products to retailersWhat’s on your mind?
What about shrink?
Typical ●
Questions ● Time to deploy &
Customers Love Mashgin maintain?
● Price & ROITalk To Us toby.awalt@mashgin.com jack.hogan@mashgin.com
Thank You!
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