Sainsbury’s has become the latest grocery retailer to launch a checkout-free store that uses cameras and shelf sensors to detect what shoppers put in their basket. As rumoured earlier this month, the new SmartShop Pick & Go format has been built around the ‘just walk out’ technology that Amazon developed for its food stores that are currently being rolled out in the UK and US.
To enter the Sainsbury’s store, customers scan a QR code using their SmartShop app which is linked to a credit or debit card. Similar to the Amazon Fresh stores, the technology automatically adds anything the customer takes off the shelf to their virtual cart and removes anything they put back on the shelf. The customer leaves the store by scanning the QR code to exit through automatic gates. Their linked card will then be charged, with a receipt emailed to the customer.
Sainsbury’s said it had chosen to use Amazon’s just walk out technology for the Holborn Circus store in London because it is primarily focused on offering on-the-go food and drink to local workers who want to complete their shopping as quickly as possible.
The retailer also highlighted that demand for contactless ways to shop has increased since the start of the pandemic. Its existing SmartShop system, based around scanning products using handsets or an app, is now available in around 1,400 Sainsbury’s stores, with sales up 173% versus last year.
Clo Moriarty, Sainsbury’s Retail and Digital Director, said: “We are always looking at new ways to make shopping easy and convenient for our customers. We are excited about launching ‘SmartShop Pick & Go,’ which offers contactless, checkout-free shopping to our customers and are looking forward to hearing their feedback.”
Amazon has recently been working to commercialize its checkout-free technology. It is now used by a handful of third-party retailers in US airports, convention centres, and stadiums. Sainsbury’s is the first customer outside of the US to use Amazon’s system.
Dilip Kumar, Amazon’s VP of Physical Retail and Technology, commented: “We are thrilled to collaborate with Sainsbury’s to enable their Holborn Circus checkout-free convenience store powered by our Just Walk Out technology. We’re excited to bring Just Walk Out technology to our first customer internationally with Sainsbury’s.
“With no tills, no checkout lanes, and no self-service scanners, we can’t wait to hear how busy Londoners enjoy the experience.”
Reports earlier this month suggested the online giant wants to have over 260 of its Amazon Fresh stores operating in the UK before the end of 2024 to challenge the established players in the sector.
Tesco opened its first checkout-free outlet for the public in October. The ‘GetGo’ Express store is also in Holborn and uses technology provided by Israeli firm Trigo to detect what products customers have chosen. Meanwhile, Morrisons and Aldi have started staff trials of their own checkout-free stores.
NAM Implications:
- Welcome to the new norm!
- Easier for retailers to buy Amazon tech than start from scratch?