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Presented by: TESCO PILOTS MOBILE SELF-SCANNING Bryan Roberts January 2014
© Copyright 2013 Kantar Retail Background After Sainsbury’s launched a two-store pilot of smartphone scanning in two stores in 2013 (now a four-store trial), Tesco followed suit in 2014, launching a Scan As You Shop Mobile (SAYSM) pilot in its Cheapside Metro store in January. The pilot is set to run until Friday 14th March 2014, with selected Clubcard holders invited to participate in the trial phase. Tesco states that: “this is a test utilizing new systems and techniques, consequently there is a possibility of unscheduled interruptions to the service.” Kantar Retail was invited to use the service a few days after launch, and here we present our observations, together with some implications for suppliers. 2 Source: Kantar Retail
© Copyright 2013 Kantar Retail Getting started… 3 Source: Kantar Retail Store Visit After downloading the app, shoppers need to register, by pressing the “Shop Now” button followed by the “Register” button. Shoppers then enter their e-mail address and Clubcard number (and choose a password.
© Copyright 2013 Kantar Retail …and logging in 4 Source: Kantar Retail Store Visit When shoppers arrive at the store, there are two ways to log in: 1)If they have allowed location services on their device, all they need to do is start the app, press “Shop Now” and confirm their location 2)If they have not allowed location services, they need to scan the login code at the entrance. This is to be found on the side of the new checkout area
© Copyright 2013 Kantar Retail Distinct bags for SAYSM customers 5 Source: Kantar Retail Store Visit The check-in QR code is located at the front of the store, adjacent to the two checkout touch-screen kiosks for SAYSM. SAYSM customers are directed to use one of the special yellow carrier bags provided at the new checkout area, rather than using their own bag. These enable Tesco staff to identify shoppers as SAYSM customers.
© Copyright 2013 Kantar Retail Shopping 6 Source: Kantar Retail Store Visit Once logged in, a shopping cart opens, enabling shoppers to scan items as they complete their shop. As each item is scanned, a list and running total appears on the screen. After scanning, the shopper places each item in their yellow shopping bag. The system is designed primarily for shoppers with a small number of items.
© Copyright 2013 Kantar Retail Unwanted items? 7 Source: Kantar Retail Store Visit If shoppers change their minds, they can rescan an item to remove it from the shop. Rescanning is important as it averts shoppers deleting an item from their phone but not removing the item from their bag, intentionally or unintentionally. Shoppers can also remove an entire shopping trip by swiping upwards on their screen.
© Copyright 2013 Kantar Retail Proceeding to checkout 8 Source: Kantar Retail Store Visit Once shoppers have completed their selection and scanned their final item, they can hit ‘finish’ on their phone. The final screen shows the total spend and any multi-buy savings.
© Copyright 2013 Kantar Retail Proceeding to checkout 9 Source: Kantar Retail Store Visit If an item requires weighing, shoppers can take the item to the checkout area so that it can be weighed at the end of their shopping trip. The item is placed on the scales, with shoppers selecting the correct product from the on-screen picklist. A barcode label is printed that can then be scanned using either the phone, or the scanner at the checkout
© Copyright 2013 Kantar Retail Checkout 10 Source: Kantar Retail Store Visit Customers then proceed to the checkout touch-screen kiosks and scan the QR code to complete the shopping process. The shopper enters their chip & pin payment card as usual.
© Copyright 2013 Kantar Retail Observations The Scan as you Shop Mobile system being piloted by Tesco is rather impressive. It is a very smooth and intuitive system and offered a genuine sense of convenience. Unlike the Sainsbury’s pilot, it offers separate checkout for users, meaning that the system delivers on its goal of expediting the shopping trip and easing congestion in busy stores. Another bonus is that the shopper’s loyalty card data is embedded in the app, removing another layer from the checkout process. The problems we encountered (e.g. glare when trying to scan barcodes on bagged SKUs) are not substantial, and are encountered during a standard self-checkout process anyway. This innovation is ideal for small basket convenience trips – it would be interesting to see it in action in an Express environment too. 11 Source: Kantar Retail
© Copyright 2013 Kantar Retail Implications Possibly bad news for impulse category suppliers, as this innovation will mean less footfall through manned tills with full impulse merchandising and through self- checkouts with partials impulse merchandising. Early days for the trial, clearly, but longer term, this type of technology could well be used for ultra-targeted promotions through pinpoint geolocation. With its advantages over the Sainsbury’s iteration of smartphone scanning, combined with other innovations such as card-only self-checkout, it would appear that Tesco is looking to increase its advantage in c-store retailing over its main multiple competitor. This would suggest that Tesco might remain partner of choice for shopper marketing endeavours in the UK convenience market. 12 Source: Kantar Retail
© Copyright 2013 Kantar Retail +44 (0)207 031 0272 www.KantarRetailiq.eu 24-28 Bloomsbury Way London WC1A 2PX UK Bryan.firstname.lastname@example.org @BryanRoberts72
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