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Autonomous stores: How new technology is making in-store shopping more convenient for consumers
As businesses adopt new technology to improve customer experiences, we explore the setup of autonomous stores and the benefits they bring to the table.
When you want to physically see or touch an item you’re interested in buying, nothing beats in-store shopping. But those benefits can quickly dwindle when faced with a long queue at checkout. Watching the people in front of you fumble for their payments might make you regret not shopping online.
You’re not alone. In fact, 44% of consumers opt for online shopping just to avoid the crowds; 30% of customers say that long checkouts create a negative shopping experience for them. That’s not great news if your business relies on brick-and-mortar sales. Every customer that chooses to abandon their physical cart before checkout puts your revenue at risk.
For businesses looking to remain agile, autonomous stores could offer a truly modern solution. They blend technology with convenience, and integrate smooth payments into the shopping flow.
Autonomous stores are transforming how we buy: no queuing up or making sure you’ve got the right credit card. You just pick what you want and walk out, without ever breaking your stride. With that convenience, 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."
Autonomous stores explained
An autonomous store is a retail setup that allows you to enter, browse, buy, and leave without the frustration of waiting in line, scanning items, and paying at a terminal. It's grab-and-go shopping.
An autonomous store could be a . Different retail sub-sectors use this setup. This includes groceries, quick service restaurants, clothing, electronics, entertainment, and sports.
“In sports, every second counts. Stadiums and arenas are embracing checkout-free technology to shorten the wait times at concession stands, letting fans grab a beer, hot dog, or merchandise on the fly.”
Erwin Kersten-Johnston
Global Strategy & Growth, Adyen
The technologies that make autonomous stores possible
Autonomous stores use advanced artificial intelligence (AI) technology for a checkout-free shopping experience. This includes:
Sensory technology
Sensors analyze pressure, temperature, and weight to track products customers take from shelves.
Computer vision and machine learning
Cameras capture images and videos to recognize shopper activity in real time. This allows you to analyze which items are more popular.
Cameras also track in-store traffic, giving you insights into how visitors interact with the space and whether the layout is effective.
Radio-frequency identification (RFID)
RFID technology 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, you 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’s the typical shopper journey in an autonomous store?
In a traditional brick-and-mortar store, a customer arrives, browses, chooses items, waits in line (for self-checkout or the cashier), pays, then leaves 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.
It’s similar to tapping your card when taking the bus or MRT. A placeholder amount is placed on your account to verify sufficient funds from the start.
Browse
Here, the different technologies mentioned above track the customer’s activity and which products they pick.
Walk away, 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.
“Payments are becoming an increasingly seamless and invisible part of shopping. If transactions without consumer involvement were associated with subscriptions or transport platforms, then the model introduced in the Nano stores chain has sparked a new way of thinking about grocery shopping. Payments are now completely unnoticeable.”
Paweł Grabowski
Head of Unmanned Solutions, Żabka Future
How does an autonomous store benefit customers and businesses?
Autonomous stores bring a wealth of benefits to both customers and businesses.
1. A faster shopping experience 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 these friction points, your streamlined experience increases the likelihood of shoppers returning to your store and making more purchases.
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 1am.
3. Streamlined operations Since you only need staff to oversee the store and restock shelves, your business won’t be as hard hit by hiring struggles, foreign worker quotas or labor shortages. So the real human touch comes in where shoppers desire it the most: product assistance and fully stocked shelves.
4. Efficient use of space In your regular store, what could be more shelves stacked with merchandise 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 location is in a prime area.
5. Increased customer and product insights The technology that autonomous stores rely on can help you truly understand your shoppers’ habits and preferences. It also lets you track the performance of your stock. This makes it easier to create personalized marketing and manage your inventory in real time.
“Our AiFi Spatial Intelligence platform and our Autonomous Retail capability make shopping faster and more convenient by removing checkout lines. Shoppers love the experience and more businesses are embracing this new technology to drive extensive benefits like revenue uplift, labor optimization, valuable insights, and improved operational performance. The future of retail is here.”
Áine Riordan
Global Head of Partnerships, AiFi
Why Singapore is ready for autonomous stores
Not only is Singapore ready for autonomous stores, they’re already here. Local shoppers are already using standalone autonomous stores like Octobox, as well as autonomous outlets from 7-11 and Cheers convenience stores. Grocery giant FairPrice also has its own semi-autonomous offering with Scan & Go, where customers scan and bag their own groceries as they shop.
Ready to offer an autonomous store to your shoppers?
It might be easier than you think. With local consumers already well-versed in autonomous shopping, all that’s left is to make a few simple conversions to your existing stores. And thanks to the Singapore government’s Smart Nation 2.0 agenda, that might be easier - and cheaper - than you think. Your business could be eligible for grants that cover some of your upgrades, making your switch a lot more pain-free.
Ready to go autonomous? We can help.