The use of self-serve checkouts continues to grow at an astronomical rate. Last year consumer spending at self-serve checkouts was up 35% over 2004.

When the concept of self-serve checkouts was first developed, retailers saw it as an opportunity to reduce the number of cashiers required to operate a store. All retailers placed a big emphasis on the security aspects of having customers ring up their own purchases. However the biggest impact to date has been the effect of self-serve checkouts on candy and magazine sales.

According to a study from IHL Consulting Group, consumers using self-serve checkouts are able to overcome the impulse of buying gum, candy, and magazines at a rate of 45.4% less than at full serve checkouts.

Properly accounting for change

When change is contemplated it is important to look at all aspects from a strategic point of view. Loss Prevention Officers played a major role in the deployment of self-serve checkouts while the merchandising staff considered it a non-issue. Most buyers agreed that the big impact would be in shrinkage when customers failed to ring up their purchases, opting to go directly from cart to bag when the supervisor wasn't looking.

Retailers were guilty of looking at the full consumer behavior instead of simply looking at it from a defensive aspect.

The use of consumer focus groups, normally an accurate predictor of customer acceptance, failed to pick up on the change of impulse sales. In fact retailers were slow to detect the change as it was easy to blame the candy sales of low-carb diets and the magazine sales on the Internet.

Today retailers are scrambling to make up these lost dollars from impulse sales. Grocers are finding they must appeal to the sense of smell to lure customers into a last-minute purchase these checkouts which normally do not have display areas within immediate reach of the customers unloading their carts.

It is a complex problem for retailers as they must make up both the dollar volume and profit margin being lost from impulse sales. Rotisserie chicken, fresh-baked bread, and doughnuts are replacing the gum, candy, and magazines that once dominated the impulse check out business.

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Rick Weaver

Rick Weaver is an accomplished business executive with a wealth of experience in retail, market analysis, supply chain enhancement, project management, team building, and process improvement.

Rick career began in retailing as a stockclerk, eventually becoming the Director of Vendor Development at Kmart Corporation during it?s heyday. In this position he worked with hundreds of Kmart?s suppliers to improve mutual processes, procedures, and profits.

As a consultant, Rick has worked with companies in various industries to develop leadership and business strategies. These companies include Sara Lee, Procter & Gamble, 3M, GM, The State of Michigan, OLHSA, Fruit of the Loom, Eastman Kodak, Kmart, Coleman, Pope & Talbot, Atmosphere Heat Treating, Rinchem, Builder's Industry Association, Ingersoll-Rand, Dow Chemical, HIS Jeans, Wrangler, Confab, S. C. Johnson, Kimberly-Clark, Exxon-Mobil, Pennzoil, Kraft, Remington Arms, US Playing Cards, and Johnson & Johnson.

As an entrepreneur, Rick has founded or co-founded six successful organizations, including non-profit and for profit. All organizations have been consistantly profitable since their second quarter.

Now in his role as president of MaxImpact, Rick uses his vast experience helping individuals connect to their dreams and teams connect to a common vision.

Rick?s presentation style of blending humor, real life examples, and easy to implement ideas has made him a popular speaker at seminars, workshops, and conferences in in 43 states, Canada, and Puerto Rico.