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Autonomous stores: Behind the technology set to take the future
As businesses adopt new technology to improve customer experiences, we explore the setup of autonomous stores and the benefits they bring to the table.
Few things are more frustrating than waiting in a long line. Add tiredness and impatience to the scenario, and you may not even make it to the checkout as the temptation to bail kicks in.
Our research found that 30% of customers have a negative shopping experience due to long checkouts, and 44% choose to shop online to avoid such crowds. This doesn’t bode well for businesses that rely on brick-and-mortar sales. Their revenue is at risk with every customer choosing to leave.
This is where autonomous stores come into play as a solution that more businesses are adopting to remain agile. They blend technology with convenience, integrating seamless payments into the shopping flow.
Autonomous stores are transforming how we buy: no more waiting in line or fumbling for your preferred payment method. You just pick what you want and walk out, without ever breaking your stride. In a nutshell, they’re making every shopping trip a hit.
"The retail industry has been trying to remove friction and reduce costs since the invention of modern stores," noted Tim Oldeman, Co-founder of Husky Intelligent Fridges. "Since Amazon Go launched unmanned retail stores to the public, most retailers entered the race towards autonomous retail. Experts predict there will be over 12,000 autonomous retail stores in 2027."
What are autonomous stores?
An autonomous store is a retail setup that enables customers to enter, browse, and leave without the friction of waiting in line, scanning items, and paying at a terminal. It's grab-and-go shopping.
An autonomous store could be a standalone store or a store within a store. Different retail sub-sectors use this setup. This includes groceries, quick service restaurants, clothing, electronics, entertainment, and sports.
Which technologies power autonomous stores?
Autonomous stores use advanced artificial intelligence (AI) technology for a checkout-free shopping experience. This includes:
Sensory technology
Sensors help in analyzing pressure, temperature, and weight to track which products customers take off a shelf.
Computer vision and machine learning
Cameras capture images and videos to recognize shopper activity in real time. This allows autonomous stores to analyze the products customers pick.
Cameras can also track in-store traffic, giving businesses insights into how visitors interact with the space and whether the layout is effective.
Radio-frequency identification (RFID)
This technology also helps stores track their stock on shelves.
Each product has an RFID tag. When a customer removes a product from the shelf, an RFID reader will recognize the tag’s signal. The reader sends this signal to a database, where it’s stored and processed. It then generates real-time results for inventory tracking and the customer’s purchase history.
With the right technology, businesses can provide a queue-free shopping experience, combining the ability to browse in-store with the ease of a fast and straightforward online checkout.
What does that look like in action?
What do shopper journeys look like in autonomous stores?
In a traditional brick-and-mortar store, a customer arrives, browses, waits in line (for self-checkout or the cashier), pays, then walks out with their purchased goods.
The order is different in an autonomous store.
Entry
To enter the autonomous store, the customer needs to pre-authorize their payment card. They can do this by scanning their payment card or the store’s app which syncs up to their payment details. This enables automated payments further down the line.
Think of it as similar to scanning your card into a reader while traveling via public transport. A placeholder amount is placed on your account to verify sufficient funds from the get-go.
Browse
Here, the different technologies mentioned above track the customer’s activity and which products they pick.
Exit then pay
Thanks to the pre-entry validation, the shopper can leave, without going through a checkout process.
The payment happens in the background. After the customer walks out of the store, the exact items purchased are determined and their price calculated. The placeholder amount is then adjusted to reflect the actual purchase, and the store can charge the right amount to the card the customer used to enter.
What are the benefits of an autonomous store setup?
Autonomous stores bring a wealth of benefits to both customers and businesses.
1. Faster shopping experiences
Every minute counts. When you take away the manual scanning of items at checkout and the potentially long lines, the whole process becomes faster and smoother for your customers.
By eliminating friction points, you enhance the shopping experience, increasing the likelihood of shoppers returning to your store and putting through more transactions.
2. Longer opening hours
Since autonomous stores don’t require cashiers, they can be open longer, sometimes even 24/7.
This could increase your revenue and broaden your target audience by appealing to everyone, from 9–5 workers to night shifters wanting to buy food at 1 am.
3. Streamlined operations
Your business won’t be impacted by any hiring struggles or labor shortages because there’s no need for cashiers to operate.
You only need staff to oversee the store and restock shelves when required. So the real human touch comes in where shoppers desire it the most.
4. Efficient use of space
In your regular store, what could be more shelves stacked with products to sell is taken up by checkout areas. And the crowding that could come with these tills can make browsing difficult.
By removing checkout lines, you can make the most of your space. This proves even more fruitful if your site is costly.
5. Increased customer and product insights
The technology that autonomous stores rely on can help you truly understand your shoppers’ habits and preferences. And you can track the performance of your stock. This makes it easier to create personalized marketing and manage your inventory in real time.
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