For some years now, AI-powered computer vision technology has made checkout-free retail stores a reality. As known, these stores allow customers to leave without the traditional checkout process. Amazon Go is the pioneering example of a checkout-free store model.

Other retail brands are also climbing aboard the bandwagon. Nike’s Speed Shop allows its customers to purchase their shoes online and then try them out at dedicated stores through mobile checkouts.

In short, we may be entering the age of autonomous retail.

Many retail shoppers now prefer autonomous stores for their faster checkout process, non-intrusive environments, and seamless in-store experience. The latest statistics support this claim. 60% of shoppers prefer self-checkouts and hate to stand in long checkout queues. 62% of shoppers also expressed that a self-checkout significantly improved their in-store experience.

In a competitive retail industry, autonomous stores are emerging as a major force in reducing operational costs and improving the shopping experience.

What is Autonomous Retail – and why is it set to grow?

Autonomous retail is essentially a mode of in-store shopping where customers can pick up their chosen products – and leave the store without the traditional “pay and checkout” process. Why is it popular? This retail mode combines the convenience of “online” shopping with the “in-store” experience.

Autonomous retail is set to grow exponentially in the coming years. Why? For a start, this shopping mode benefits both shoppers (seamless shopping experience) and retailers (lower costs due to the absence of checkout cashiers). On average, the traditional checkout process takes between 3 to 8 minutes. Comparatively, autonomous checkouts take around 90 seconds.

Żabka is the largest operator of autonomous stores in Europe. This retailer is leveraging AI technology to operate their autonomous stores 24/7 without any checkout staff. Using their mobile app, shoppers can even unlock the store entrance.

Besides customer convenience, autonomous stores are helping the brand reduce its operational costs and increase revenues. In the post-pandemic era, consumers are also shifting towards this trend driven by their desire to adopt eco-friendly shopping practices like sustainability. In 2023, 78% of consumers prioritize environmental sustainability. For food retailers, autonomous stores reduce food wastage by using data-driven technology to predict demand for fresh products.

Among the latest retail trends, shopping carts are becoming smarter and more intelligent. With embedded cameras and sensors within the shopping cart, retailers can track when shoppers add (or remove) items from them. With a QR code reader, every shopping cart can also quickly process the payment.

Challenges in Autonomous Retail

While autonomous retail looks promising, it does have its share of implementation challenges, as outlined below:

1. High upfront costs

In the long run, autonomous stores can leverage the cost benefits of a reduced workforce. However, retailers must still deal with the high upfront investment in autonomous systems and technologies.

2. Consumer acceptance

Consumers must also be comfortable with the idea of shopping at autonomous stores. For instance, older customers may still prefer shopping the “traditional” way and standing in long checkout queues.

3. Seamless integration

For wider usage, retailers must also integrate their autonomous retail systems with third-party tools like inventory and point-of-sales. They also find it challenging to integrate autonomous systems with their legacy services.

4. Lack of technology readiness

Modern retailers adopt the autonomous model to make the shopping experience more “frictionless and convenient” for shoppers. However, a lack of technology readiness can obstruct their transition to a “cashier-free” store. For implementing any new technology, retailers:

• Need time to implement the technology.
• Educate shoppers and address their concerns.
• Train internal staff to use the technology.

5. Data privacy concerns

Despite the shopping convenience, consumers are concerned about the misuse of their personal information collected by retailers. To address this concern, retailers need a safe and robust system to protect their customer data from unauthorized access or misuse.

How computer vision technology can make autonomous retail a reality

Computer vision (CV) technology can help automate the checkout process in any retail store. Along with an AI-powered CV system, an in-store camera can capture purchased product images, while the AI algorithm can identify the product and its correct price. This self-checkout system can automatically charge shoppers for the purchased products upon exiting the retail store.

Similarly, AI-enabled smart carts are transforming the shopping experience. This is why nearly 50% of groceries plan to evaluate smart carts over the next 12 months. Besides enabling self-checkouts, CV-enabled smart carts provide retailers with information on the “popular” store locations, where shoppers are picking up most products. This helps them optimize the store layout and reduce the shopping time for consumers.

Additionally, retailers can leverage computer vision to detect thefts in autonomous stores. By observing any “suspicious” behavior, CV-enabled can send out timely alerts that require intervention from store personnel. A recent example is that of grocery retailer, Aldi using a CV-powered self-checkout system to prevent shoplifting.

Empowering retailers with KamerAI’s Computer Vision platform

In a competitive retail marketplace, autonomous stores look like the way forward for retailers to gain a market advantage. With an AI-enabled computer vision system, retailers can add the “eye” necessary to monitor autonomous stores.

As a CV solution provider, KamerAI has enabled retailers to implement a cashier-free physical store in any location. Our computer vision platforms enable retailers to:

• Monitor their store footfall.
• Learn about consumer’s shopping behavior.
• Track product placements.
• Prevent retail thefts.

With our technical expertise and industry experience, we can help you overcome the challenges of implementing an autonomous store. Speak to our CV experts now.