Tuesday, July 25, 2006

Convenience Trumps Impulse Capitalism

Image Credit: Fujitsu Transaction Solutions - USCAN

It turns out that when shoppers are into a pure "Hunter/Gatherer" mode of shopping (ie. get in - get it - and, get out), the impulse nature of decision shopping drops dramatically.

You know what you want and you run to the store to get the items, where do you choose to checkout and get on with your day? The self-checkout station, that's where. A place where there is elbow room, no racks to bump into, and a quick turn-around conclusion to your short shopping experience ... after all, you have better things to do.

This self-checkout thing has become a real problem to retailers, however. Now, some of us will not even shop in a store unless they offer a self-checkout option!

This from the New York Post -

QUICKIE CHECKOUT CUTS BUYS
By SUZANNE KAPNER - New York Post - July 25, 2006

Self-checkout aisles at supermarkets dramatically reduce impulse purchases of items like chocolates and magazines, a new study reveals.

Shoppers make last-minute purchases 45 percent less often when they use automated checkout machines, as opposed to waiting for a cashier to check them out, according to IHL Consulting Group.

The drop in impulse purchases was greater for women (50 percent), than for men (27.9 percent), according to IHL, which polled 533 people to determine their shopping habits.

IHL analyst Greg Buzek warned that companies like Hershey's, Wrigley's and Pepsico, which make many of the products that line supermarket check-out lanes, could face a drop in sales unless they figure out a way to better appeal to time-strapped consumers.

Some supermarket chains like Kroger and Meijer have addressed changing consumer behavior by adding items like rotisserie chicken and fresh baked breads to the front of stores, to entice shoppers through their sense of smell, as opposed to simply using visual displays, Buzek noted.

In 2005, consumers spent more than $110.9 billion in self-checkout transactions at retailers, up 35 percent from the prior year, IHL said.

However nearly 30 percent of respondents said they preferred cashiers, opting to only use self-checkout when lanes staffed by employees had long lines.

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Have Scanner ... Will Shop!

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