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Checkout-free supermarket unveiled
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Checkout-free supermarket unveiled
Posted Date: 27/10/2011
By Inside Retail


A US inventor has unveiled a futuristic supermarket retailing concept which eliminates checkouts and cashiers and revolutionises behind the scenes stock control.

At first glance the prototype store using Ran Margalit’s ShelfX Smart Shelves looks like any store except tidier - and without visible checkouts. 

But his forward-thinking system promises to do much more. 

Using radio frequency identification (RFID) and near-field communication (NFC) technology, ShelfX ends checkout counter queuing at grocery stores, big box retailers and high traffic locations like sports stadiums. 

It also provides retailers with added-value benefits such as improved inventory management, real-time pricing updates throughout a retail chain, enhanced customer loyalty, and increased shopper conversion rates.



Margalit was inspired to create the system when visiting a store to pick up a few items with his wife.

“I saw the opportunity to do away with the checkout process all together.”

He questioned why people had to wait in lines and wondered why grocers, specialty retail stores, stadiums and others couldn’t adopt the latest RFID and NFC technology to offer shoppers seamless checkout in the aisles. 

“I pushed my concept even further and asked how retailers could benefit from this technology to improve stock levels, entice buyers with personalised incentives, and use real-time information to increase sales. And so ShelfX was born.”

Equipped with highly-sensitive scales, a ShelfX Smart Shelf knows the exact item and quantity of the item being stocked. When a shopper approaches the shelf with an RFID-enabled ShelfX Card to take an item, the ShelfX system greets the customer by name, tells them what they have purchased, offers discounts and additional suggestions based on their customer profile, and processes their payment. On the back-end, the inventory is automatically updated.

“The obvious benefit here is for the shopper. They come in, take their items and leave; no hassles, no waiting in lines,” explains Margalit. 

“However, for the retailers, ShelfX offers so much more. Since pricing is updated by store managers in real-time using the ShelfX Software, the manual process of labelling shelves during store promotions or regular updates is no longer necessary. Similarly, since the checkout process is done automatically, retailers can optimise staffing levels and avoid the time-consuming practice of scanning barcodes and manually entering SKUs.”

With ShelfX, retailers no longer have to send store personnel to walk though aisles to check stock levels. Instead, ShelfX provides up-to-the-minute reports on inventory and will even alert store managers when certain items are running low and require re-stocking.

ShelfX analyses each personal shopping session in real-time to offer shoppers relevant discounts via the LCD screen on the ShelfX Smart Shelf. An additional ShelfX App is also offered to shoppers so they can keep track of their buying history, receive personalised incentives and even check nutritional information on products.

“ShelfX will revolutionize the way we shop, and it’s about time,” said Margalit. “But in the same respect, we are taking the shopper back to a time when shopping was simple. The customer walked into a store, was greeted by name, told about the specials, paid without hassle and left. The 21st Century store clerk’s name is ShelfX. It’s making shopping simple but doing so much more.”

More information about the ShelfX system can be found at www.shelfx.com.
Comments:

Saturday, May 12, 2012 by Anna E
How does this system stop customers who do not pay? There are supermarkets that do not have checkout staff and customers have to scan the items on their own. It has been found that some customers do not scan all items in their shopping basket. As a result, they are paying less than what they actually take out of the supermarket.
Wednesday, March 28, 2012 by Anonymous
A vending machine without a door..
Tuesday, March 06, 2012 by miremax1
very clinical toxic products...not for basic needs....supermarkets will go by way of 7/11 and a new generation "trully" local stores are sprouting....YEAY
Wednesday, February 29, 2012 by Dom Italiano
“But in the same respect, we are taking the shopper back to a time when shopping was simple. The customer walked into a store, was greeted by name, told about the specials, paid without hassle and left."

It still is if you actually shopped at your local small business where the owner is the person behind the counter and if they run it right can offer you all that plus more.

So much for the big chains promoting new opportunities for employment like they keep sprouting about whenever they want to justify destroying a small town by dumping in a big supermarket.
Monday, February 13, 2012 by jennifer curtin
Im with Bazza, up there with if it sounds too good be true, more than likely, it is.
I imagine there will be a lot of headaches, and frustration by customers. Will give a whole new meaning to "supermarket rage".
Jennifer.
Tuesday, January 31, 2012 by Barry McCarthy
What if I want to take my purchase back? will ShellX be kind enough to lend an ear on why it is being returned? How about the latest hitech fraudsters using stolen/fake credit cards...will ShellX be able to provide a verbal and signed statement for the police???...how about the security provided by cashiers...hmmm doubt ShellX will be able to beat the human interaction that is required here..jsut shop on line and lets continue having cashiers...to me thsi ShellX is a thin layer for Profit Margin increase rather than a real shopping experience

Bazza
Thursday, January 19, 2012 by Surianingsih
good idea but it will lack of cheerful staffs' smile at the checkout counter.The shopping environment will become like a big box machine instead of having relax and cozy shopping moment.
Tuesday, January 03, 2012 by John
Taiwan has been developing this technology about 3 years ago. Got a friend who work on an IR company before who market this thing. Nothing new...
Wednesday, December 28, 2011 by KYM PHILLIPS
Yep, I made the mistake of going to MASTERS - the Woolies competition to Bunnings - where there are no checkout staff. After trying to scan a plant and dropping soil all over the counter top, I gave up and walked out, never to return.

Memo to retailers: You want customers, provide service!
Tuesday, December 06, 2011 by Sue
Yep I reckon only a bloke would think this is good.Go in pick it up, leave. I agree with the mayhem scenarios as above plus how strong would the LCD need to be? And if I want to pay cash (as I frequently do) who will give me change?
Monday, December 05, 2011 by greg
Woolies and Coles will love this, they've been trying to sack all their own staff for years. If you shop there, take a long, hard look at yourself.
Tuesday, November 22, 2011 by Stephen G
Interesting article, and thoughtful exchange. Plus I thought that comment about "if you build an idiot-proof system, some fool builds a better idiot" was one of the funniest things I have read for a long time. And so true!!
Thursday, November 17, 2011 by Daniel Quattro
how would a system like that deal with products such as fruit and vegies where the weight of the item determines the price and not the quantity?
Monday, October 31, 2011 by John B
This concept if tested in real store life situations and demonstrates it can function in the manner designed would if introduced compete more fairly with "On Line Buying" as prices will be reduced in line with savings in the disappearnce of check out staff, no waiting for the product to delivered on a date or time when you need to be there to collect along with a recorded history of the customer so extra discounts can be offered
Monday, October 31, 2011 by Tanya
well the Company will have more Profit the do not care so long there is more Money for them
Sunday, October 30, 2011 by Anonymous
If I had to buy a product just to pick it up off the shelf or if I was on the fence about buying a product, I would leave it there and never buy it. It's bad for retailers so I don't think that many will adopt the ShelfX technology. Stores will eventually shift to digital pricing, but I don't see the ShelfX being the ideal solution for this need. It would obviously designed by a man for a male shopper.
Friday, October 28, 2011 by Scott S
Have these geniuses ever seen people shop? Customers will find a way to screw it up -- customers, not thieves intending to work the system. If they make it so if you change your mind and put something back on the wrong shelf (which is going to be the most common problem) the system still handles it correctly, somebody eventually will leave an item somewhere that the system doesn't pick up (maybe on top of the whole shelf thing, or on top of another item or... if all else works... the floor)! Sure, it's the rare crazy customer's loss in that case, but it's still a good example of why in general you need a human keeping tabs on a computer: if you build an idiot-proof system, some fool builds a better idiot. That's not to criticize humanity; it's just part of the human genius (in the old sense, that of spirit) that we don't fit into systems terribly well, much as we also happen to like them.
Friday, October 28, 2011 by Shane Smith
Technology that is money orientated is bound to be people crushing. Money itself is o.k. 'BUT' the love of it will always take casualities.
Friday, October 28, 2011 by Janet Dixon-Hughes
How would that work with fresh produce that varies in weight? How much would a system like that cost to implement? How many jobs would be lost?
Friday, October 28, 2011 by Mark Wrice
Wow, can't wait. It is interesting to see the line "retailers can optimise staff levels" I can imagine the majors now thinking about cutting the staff to virtually none and adding the numbers to the bottom line. But what will be more interesting is when little Johnny comes along and starts knocking over stock and changing location and breaking things. This is all well and good as a concept but being greeted by name just like the good ole days by a computer generated voice - how comforting. The concept is definitely smart but hey with QR codes and picture walls in train stations lets just get rid of the supermarkets all together and go to warehouse direct delivery. Staff can have a well earned retirement on a beach somewhere ordering their drinking via touch screen because we don't need waiter either. That's the life.

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