Sam’s Club takes risk by testing new way for shoppers to scan items

Patricia Battle AMG-TheStreet

3 months ago

Sam’s Club, which is owned by Walmart (WMT) , is testing out a major change that can alter the way customers shop in its stores.

During a recent interview on Omni Talk Retail, Sam’s Club CEO Chris Nicholas revealed that the company is opening a new store in Dallas that will be free of checkout lanes, which can set the tone for future locations.

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“It’s a fully digital experience,” said Nicholas. “So you walk in, and the first thing you’re going to notice on your left-hand side is there are no registers, so we expect 100% digital engagement in that club which means everyone’s shopping Scan & Go.”

Scan & Go is essentially a mobile self-checkout for customers. Instead of checking out items with a cashier or through a self-checkout machine, shoppers will be able to scan and pay for items through a mobile app on their phone.

When shoppers are finished paying for their items, they won’t have to worry about an employee checking their receipts or shopping carts. Arches in the store are embedded with computer vision technology which automatically detect customers’ receipts and items in their basket.

“There’s no face check, there’s no biometrics, it just looks at what’s in your basket, and it compares that to all the receipts that are outstanding,” said Nicholas. “And as long as it can compare the two and see everything in your basket, it gives the validation that you’re good to go.”

Nicholas claims that the technology will take “mundane tasks” out of the workload of store associates, and it will also save customers time.

“Members told us that ‘we don’t want any friction in our lives, and we’ve got friction in other environments where we have to scan our way into a club, we have to stand at a checkout, we have to scan on the way out,’” said Nicholas. “And our job is to say ‘no, we want to give you great items and great prices, but we also want to give you great experiences.’”

More Retail:

The store is set to open in mid-October, and customers will have a wide variety of online and offline items to shop for as the absence of checkout lanes in the store will allow more space for these items.

Sam’s Club did not immediately respond to TheStreet’s request for comment.

Scan & Go technology can be risky for retailers

Major retailers such as Amazon Fresh, Whole Foods, Target, Stop & Shop, etc. have recently adopted some form of Scan & Go technology into their stores. While the technology is increasing in popularity amongst retailers, there is a lingering concern that it could exacerbate intentional or accidental retail theft.

According to a recent analysis from Adrian Beck, a professor at University of Leicester, retailers who use Scan & Go face an increased risk of product loss. In his analysis, he found that shoppers with 50 items in their carts have a 60% chance of having at least one item unscanned, while those who have 100 items in their cart have an 86% chance.

Some consumers who have used Scan & Go at stores have even complained about being falsely accused of stealing.