“Autonomous stores”: Future reality or hype?

Miya Knights, Publisher of EuroCIS 2024 media partner Retail Technology magazine, examines the increasing role of automation in stores of the future

A portrait photo of Miya Knights, Publisher of Retail Technology magazine; Copyright: Miya Knights

Miya Knights has over 25 years' experience as a retail technology analyst, editor, author and consultant. She is the owner and publisher of Retail Technology magazine.
© Miya Knights

21.02.2024

by Miya Knights

The concept of "Autonomous Stores" as part of a "Seamless Stores" vision, enabled by the development of artificial intelligence (AI), is not new. Amazon debuted the first automated convenience store in 2016.

The tech giant went on to open its first “Go” store to the public in 2018, and now has 46 Go stores across the US and UK. Its checkout-free system is also used in 55 other travel, leisure and hospitality stores.

Amazon has rolled its so-called Just Walk Out system for the purchase, checkout, and payment of a retail transaction to its Fresh and Whole Foods Market stores, along with its Dash cart for larger grocery shops.

BingoBox opened its first automated convenience stores in Shanghai in 2017, featuring WeChat-facilitated shopper identification. Since launch, it has opened over 300 locations across China to date.

Autonomous stores, also known as cashierless, unmanned or automated shops, use technologies such as AI, sensors, and computer vision. The technology can track purchases and charge customers via an app. This concept eliminates traditional or manual checkouts and streamlines shopping.

The front of an ALDI ShopandGo store; copyright: ALDI

Albert Heijn in the Netherlands began trialling cashless operations for AH To Go stores at the same time, while Tesco, Sainsbury’s and Aldi have followed Amazon to launch checkout-free stores in the UK as well.

Polish convenience store chain Żabka has built the largest network of cashierless stores in Europe, and has announced ambitions to overtake Amazon, globally. So, the automated store is definitely here to stay.

Cognitive Market Research estimates the global unmanned convenience store market size is US$69.8 million in 2023 and will grow at a CAGR of 50.2% to 2030.This growth is predicated on AI advances.

A man is holding a smartphone against a scanner to enter an autonomous store; Copyright: Sainsbury's

This type of store eliminates friction and speeds service, enabling retailers to meet digitally-influenced customer expectations while potentially cutting labour costs. But the tech itself is still expensive.

Amazon recently launched a lower-cost, smaller footprint, radio frequency identification (RFID) based checkout system for softlines to rival that of the cashierless systems offered in Uniqlo stores.

Other contributing AI-based technology innovations, around machine learning (ML), computer vision, sensor fusion, natural language processing (NLP) and deep learning, are lowering barriers of entry.

Technology innovations are revolutionizing retail, from the store to the back office, from the supply chain to the checkout – Stay in touch with developments: Find the latest solutions, an invaluable exchange with the industry and plenty of expertise at EuroCIS – the Leading Trade Fair for Retail Technology.

The front of a Żabka nano store; Copyright: Żabka group

While convenience and softlines deliver margins that justify such store investment today, it’s clear these technologies will also have a key track and trace-based role to play in better matching supply to demand.

Autonomous store developments point to the digitally enabling and data-driven capability that stores must create going forward in order to dynamically sense and respond to changing customer expectations.

Stay up to date on the latest autonomous store technologies at EuroCIS 2024, where a number of companies will exhibit their latest innovations, ranging from checkout-free systems to shop floor robots.