British retailers are checking in to the checkout-free race against e-commerce giant Amazon. With Amazon rumoured to have more than 260 checkout-free stores in their UK plan for the next three years, Tesco, Sainsbury’s and Aldi are also trialling the technology.

However, results from GlobalData’s latest UK Consumer Views Survey cast doubt, suggesting that retailers rolling out checkout-free technology have many issues to address in their marketing before they win over consumers.

Ambient commerce has 44% approval among UK consumers

Ambient commerce is a term used to describe a new form of retail that uses technology such as artificial intelligence (AI), cameras, sensors and QR codes to allow customers to select and pay for their goods without the need for checkouts or tills.

GlobalData’s latest survey provided insight into ambient, checkout-free retail. 2,000 consumers were asked whether they would use a checkout-free grocery store in a convenient location to them; 44.3% of respondents said yes, 55.7% said no.

While the figures may sound concerning for retailers looking to trial ambient commerce, the technology is still nascent. There are very few checkout-free stores across the UK, the majority of which are located around London. The results could, therefore, be interpreted as hopeful; many of those surveyed are unlikely to have much knowledge about the stores, let alone the opportunity to try one.

Reducing set-up friction will improve consumer adoption

Of the consumers that stated they would not use a checkout-free grocery store, 42% said that the need to download an app or register payment details first was behind their reasoning, while 21% worried that they would be confused by the technology. These responses suggest that retailers in the UK must reduce the set-up friction and complexity by selecting in-store technology vendors offering a more accessible shopping experience. One example is Amazon’s ‘Just Walk Out’ technology, which offers credit card, unified app or biometric entry for checkout-free stores.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

View profiles in store

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Submit

UK USA Afghanistan Åland Islands Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire, Sint Eustatius and Saba Bosnia and Herzegovina Botswana Bouvet Island Brazil British Indian Ocean Territory Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos Islands Colombia Comoros Congo Democratic Republic of the Congo Cook Islands Costa Rica Côte d"Ivoire Croatia Cuba Curaçao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Holy See Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati North Korea South Korea Kuwait Kyrgyzstan Lao Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macedonia, The Former Yugoslav Republic of Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar Namibia Nauru Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island Northern Mariana Islands Norway Oman Pakistan Palau Palestinian Territory Panama Papua New Guinea Paraguay Peru Philippines Pitcairn Poland Portugal Puerto Rico Qatar Réunion Romania Russian Federation Rwanda Saint Helena, Ascension and Tristan da Cunha Saint Kitts and Nevis Saint Lucia Saint Pierre and Miquelon Saint Vincent and The Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and The South Sandwich Islands Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syrian Arab Republic Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu Uganda Ukraine United Arab Emirates US Minor Outlying Islands Uruguay Uzbekistan Vanuatu Venezuela Vietnam British Virgin Islands US Virgin Islands Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Kosovo

Industry * Academia & Education Aerospace, Defense & Security Agriculture Asset Management Automotive Banking & Payments Chemicals Construction Consumer Foodservice Government, trade bodies and NGOs Health & Fitness Hospitals & Healthcare HR, Staffing & Recruitment Insurance Investment Banking Legal Services Management Consulting Marketing & Advertising Media & Publishing Medical Devices Mining Oil & Gas Packaging Pharmaceuticals Power & Utilities Private Equity Real Estate Retail Sport Technology Telecom Transportation & Logistics Travel, Tourism & Hospitality Venture Capital

Tick here to opt out of curated industry news, reports, and event updates from Retail Insight Network.

Submit and download

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Meanwhile, Carrefour’s latest collaboration with AiFi may provide an even more frictionless alternative. Although not truly checkout-free, customers do not use a traditional checkout at Carrefour’s Flash 10/10 store in Paris, France. In-store technology – including HD cameras, in-shelf sensors and AI – track the customer and create an anonymous virtual avatar with a virtual basket. Unlike Amazon’s technology, customers do not enter through a gateway but instead, use contactless payment at a kiosk upon exit. Without the need to pre-register their payment details or download an app, consumer adoption may prove faster with AiFi’s technology.

Retailers must address consumers’ concerns around checkout-free technology

Consumers that stated they would not use ambient commerce had many concerns with the new technology, aside from set-up friction.

35% would not use a checkout-free grocery store because of concerns with data privacy. Waning public trust in big tech – such as Amazon, a dominant force in checkout-free retail – may stem the growth of the technology. As traditional British retailers jump on the checkout-free trend, this concern may diminish, however, companies must be transparent with how customer data is collected and used.

32% would not use a checkout-free grocery store because they were concerned about the potential job losses that checkout-free stores represent. Yet, in most checkout-free stores, employees are still necessary for the maintenance of the shop floor, and the selling of age-restricted goods. And many checkout-free technology providers, such as AiFi, offer a combination of checkout possibilities, allowing the customer to choose a traditional checkout or trust in the ambient technology. Retailers should directly address UK consumers’ concerns with job loss by providing transparent figures on employee retention, or through improved marketing campaigns. However, it should be noted that self-checkout technology was quick to spread across the UK, despite initial concerns of job loss.