The impact of the unattended revolution and what retailers should consider before installing screens
By Jean-Philippe Niedergang, CCO Group et CEO LATAM et EMEA, Castles Technology
In-store retail has entered a new screen era
Shopping in-store used to be a leisure experience. Groups of friends or families wandering from shop to shop, perhaps trying to find something to wear to a big Saturday night out. However, over the last 5 years the shopping experience, depicted in films and series like Confessions of a Shopaholic, Clueless or Sex and the City, has disappeared. Key purchases are made online from a multitude of retailers, marketplaces and even individuals. Often, in-between binge-watching and online fitness classes. Consumer habits have evolved faster than we’ve ever seen before.
However, in-store shopping is not dead! The high street has declined, but the survivors are those who have pulled out all stops to adapt to the pace of the shift. Whether its independent stores organising community workshops, or international chains with surprise celebrity appearances, bricks and mortar stores are making a maximum effort to attract and keep the attention of their customers.
The battle for shopping FOMO is on! Major brands such as Lush, Lego and Ikea are reviving the concept of “shopping as a leisure” through immersive, personalised and fun experiences. Story-telling that represents a lifestyle rather than the product or store. Recent research shows it's working! 46% of millennials are heading to physical stores weekly and 28% of GenZ heading to fashion stores compared to 13% for the overall population. Respondents often cited a more “authentic experience” as the reason.
Technology is also a major part of this. It is playing a key role in capturing the imaginations of Gen Z / millennial shoppers, whether it is an experiential marketing campaign for a milestone product, robot assistants or the seamless interaction of a final purchase.
How to leverage screen technology for the final purchase
With retailers finding new and innovative ways of getting customers into the store, how can they close the sale with customers so used to buying with a swipe or a click? As we’ve seen everywhere from fast food restaurants to parking meters, unattended interactive screens hold the key to on-site customer engagement.
To give an idea of how fast unattended payment portal adoption is growing, in 2022, the global market for Self-Checkout Systems was US$3.7 Billion. By 2030, it is projected to reach US$9.3 Billion, representing a CAGR of 12.3% over the period. By 2026 there will be 1.5 million self-checkouts installed globally.
For retail, in-store screens open up broad possibilities for customer interaction and retention. Making purchases easier and closer to online habits, can overcome any last minute changes of heart. Knowing that returns are easy, also reassures customers. Large-screen point-of-sale technology needs to answer all of the customers' questions, just as an e-commerce site does.
Interactive screen technology also means that, either through loyalty schemes or a simple log-in, customers can have a seamless link to their online shopping experience. Clients can have other products suggested to them, be offered a birthday gift or even given advice on sizing. Choices are simplified and multiple purchases rewarded. Some retailers have even advanced as far as remote or virtual personal shoppers through the screen. This has proved interesting and designed to be less time-consuming and more accessible than the traditional personal shopper experience.
The in-store screen of course also gives the perfect opportunity for tailored advertising for upcoming promotions and products, a more impactful method to printing our vouchers.
Security: The pillar of trust in unattended payments
Although we can already see them everywhere, like any new technology, in-store screens or self-checkouts have had their teething problems. Although screen interaction has become second nature to a large number of customers, not everyone grew up a digital native and retailers must consider that there is also at least one traditional cashier available or a sales representative who can handle the process for customers who need it.
Since the incorporation of self-checkouts in the UK, there has also been a wave of backlash from retailers concerned with an increase in shoplifting and on the other hand consumers who’ve been denied the same promotions and discounts as usual check-outs.
Retailers need to consider the 360° shopping context before investing in autonomous checkouts and adapt the physical setting of the store around them to make sure that both the consumer and their staff are comfortable.
It is not just physical security that needs consideration. The protection of data is paramount and customers linking to their loyalty or online account need reassurance that their personal information is safe. Before installing payment systems that link to customer accounts, retailers must make sure that multi-layer protection and remote support are available for their chosen supplier’s solution. This not only supports security measures but also avoids any downtime, which results in loss of transactions.
The absence of direct human oversight in unattended payment terminals also makes them prime targets for fraud and cyberattacks. Reinforcing security is not only important for customer trust, but also for fulfilling regulatory compliance.
Mandatory security features for unattended terminals now include advanced encryption, tokenization, and PCI-compliant software. The next step, which is starting to be introduced, is biometric authentication, such as facial recognition and fingerprint scanning, to add an additional layer of security. In the future we’ll see real-time fraud detection powered by artificial intelligence to mitigate risks.
Leaning on unattended to keep in-store shopping relevant
The success of retail depends on a balance between technology that is reliable and secure technology. This safe base can spark off the feel-good shopping experience that brings shoppers in-store.
The increasing adoption of frictionless shopping and scan-free checkouts, taking away queues and waiting times reduce hesitation, especially when items are easy to return. For the retailer this can increase sales and brand loyalty.
Secure and reliable self-checkout technology that links in-store and online shopping behaviour is the key to keeping bricks and mortar shopping alive, bringing people back to the town centre to benefit the surrounding businesses.
