Sam’s Club, Walmart’s membership-only warehouse chain, is revolutionizing its checkout process with new AI-powered verification technology. This system scans the items a customer purchases, removing the need for physical receipts.
This advanced tech is available in more than 120 global locations, while the remaining 450+ stores still use the old checkout method. According to Business Insider, more than half of the customers in the tech-equipped stores opt for this new system. Plus, it allows them to complete their purchases 23% faster than usual.
Notably, this tech resembles a futuristic gateway. It was introduced at the Consumer Electronics Show earlier this year and initially tested in specific locations. Now, it is in use in Sam’s Club stores across Texas, the Southwest, and parts of the South and Midwest. There are still plans for further expansion into additional Southern and Midwestern stores.
What Is the Checkout App Compatibility Like?
The new checkout tech works smoothly with Sam’s Club’s Scan and Go feature on the mobile app. This feature lets you scan and pay for items directly via the app while shopping. As you exit through the blue checkout gate, many cameras capture images of the products and cross-check with your purchase details. Voila, you don’t have to stop for any staff to issue your receipt!
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Todd Garner, Sam’s Club’s Chief Product Officer, noted that the app’s Scan and Go feature boosts customer convenience and satisfaction. He also mentioned that its ability to introduce this tech across nearly 600 clubs globally sets the store apart from its competitors. So, think of it: whether it’s a single item or a full cart, your checkout experience can never be the same.
How Were Customers Checking Out of Sam’s Club?
Before the newly introduced technology, Sam’s Club members paid for their items using the old method. Then, shoppers would form a queue at the store’s exit to have their receipts checked by staff. Now imagine, with the new system, you don’t have to line up for long. Plus, the new system allows staff to focus on other tasks.
In January, Sam’s Club’s U.S. Chief Merchant, Megan Crozier, noted the scale of their technological rollout. She said it’s one thing to introduce advanced tech in a small-footprint store for a handful of items, but she noted that they are doing it at scale.
Her idea kind of contrasts with Amazon’s approach. Notably, Amazon withdrew its Just Walk Out technology from larger stores like Fresh, using it in smaller-format stores instead. Unlike Amazon’s Just Walk Out system, which was criticized for relying heavily on human resources, Sam’s Club’s new tech is manpower-efficient.
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The retailer reported that fewer than 40 workers are involved in the new exit tech, covering areas like engineering, product, marketing, real estate, and more.
Sam’s Club’s Approach Contrasts With Walmart’s Approach
Interestingly, Sam’s Club’s use of advanced technology differs from Walmart’s recent decision. As previously stated, Walmart is reintroducing staffed checkout counters to improve the in-store experience and reduce “partial shrink.” Partial shrink is a term describing an inventory loss when customers fail to scan items or scan them wrongly.
While Sam’s Club has yet to address the possibility of inventory loss with its new system, using AI in the checkout process makes it more sophisticated than self-checkout systems. Retailers in the U.S., U.K., and Europe are struggling with a 4% inventory loss attributed to self-checkout systems.
This even makes it easy to doubt the cost-effectiveness of such technology. But who knows what could happen? Notably, Walmart is one of many stores that are reconsidering self-checkouts; Dollar General, Target, and Five Below have also removed these systems from some of their stores.
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