Look Ma, No Cashier!
-March 8,2019-
Computer scientist Aamir A. Farooqui plans to open a 1800 square feet, fully-automated convenience store, similar to those Amazon has launched in larger urban areas, called Amazon Go.
Amazon just announced they will open a third cashierless store in San Francisco this year with young people a typical shopper.
Based in Sacramento Farooqui says his new concept store is the first of its kind in the Central Valley, and he hopes to duplicate it elsewhere.
An automated convenience store is a typical convenience store that operates without a cashier, and instead relies on computers and robotics. Amazon calls it”just walk out” shopping.
The new Visalia store will be built at 707 S Bridge St, in the middle of the city, a neighborhood of modest homes, right next to a second hand store. Mr Farooqui bought the vacant parcel last year.Not the fanciest part of town, it may be the perfect spot to test the idea that there is demand for this kind of shopping experience.
The developer is seeking a conditional-use permit from the city for the new store.
Farooqui says “In our model we will be using new type of vending machines equipped with WiFi and cameras. People can buy merchandise using cash (after converting to gift cards), credit or debit cards or through a mobile app. At the store opening, we plan to give away 100 free gift cards to our first customers.“
These kinds of stores have taken off in Europe where they go by the names of SmartMart and RoboMart. Farooqui says he has yet to choose a name for the Visalia outlet he hopes to open as soon as possible.
Not having on-site employees will allow the business to save money although it may take shoppers a little time to get used to a new routine using digital technology that would eliminate cashiers and checkout lines from stores.
“Our goal is simply to reduce the cost of running a store for small businesses and at the same time offer 24-hour convenient service to the local community.”
While the new Visalia store wont be big job producer they will need people to stock the shelves.
Higher minimum wage rates in California and elsewhere could be helping this trend accelerate although grocers are always trying to cut employee expenses. Walmart recently announced they will get rid of ‘greeters’ at their store entrances. There are almost 5 million grocery clerk jobs in the US.
A recent description of shopping at an Amazon Go is described this way.”You simply walk in, grab what you need, and go. Amazon bills your credit card as you pass through the turnstile on your way out. Moments later, an app in your phone provides a receipt detailing what you’ve bought, what you paid, and even how long you spent inside.”
Grocery stores are automating the shopping experience led by Walmart and Sam’s Club. The Visalia Walmart is installing more automated check-out devices and Sam’s Club want to allow shoppers to scan products by holding their smartphones over a product, without having to find and capture a barcode on the package.
Microsoft is said to be developing technology that can track what shoppers add to their carts.
Meanwhile Target is changing item pickup service at the stores with Pickup Towers, where the in-store process is automated.