Shopping Hudson, K. And Zimmerman, A. (June

¶ … Shopping

Hudson, K. And Zimmerman, A. (June 27, 2007). Big Boxes Aim to Speed Up

Shopping. The Wall Street Journal. Retrieved from:

http://online.wsj.com/article/SB118291052567149558.html

Over the past several decades, retail automation has continued to advance. Self-checkout will become more commonplace, and consumers are increasingly becoming used to checking and bagging their own items. There is, however, a considerable debate regarding the merits of self-checkout. One side, the merits seem endless: efficiency, time savings, convenience, and thus increased sales. However, most retailers note that although most people are lured to the self-checkout line in the hopes they will save time, they actually end up with more delays (wrong product codes, missed items, items that weigh incorrectly, etc.). This tends to have the opposite effect upon clients, but also provides an interesting conundrum to the idea of speeding up shopping with new and innovative measures (Fairfax, 2007).

Hudson and Zimmerman note that Wal-Mart, the world's largest retailer, is also suffering from the pangs of recessionary times, busy consumers, and the real consumer hatred of long lines at the checkout stand. Discount retailers are always looking for ways to improve sales, with the model of deep discounts and large assortments of goods typically being the paradigm for success. That mode was certainly successful, and many emulated it in retail, hardware, and other niche markets. Still, most of these discount retailers needed to continue in the growth mode, so added more luxury items, gourmet items, and even added coffee-shops, food courts, etc. all designed to keep the customer in the store for a longer period of time; hoping to ensure that the longer the client is in the store, the more things will catch their eye (Hudson and Zimmerman, 2007).

Still other big-box retailers are using different ideas to encourage shopping. Best Buy, for instance, employs "personal shopping assistants" in 60 of their stores who serve customers with little time in assisting them with the "right" merchandise. Circuit City outfitted salespeople with tablet computers to help clients understand specs and details about products. Lowes pays attention to lighting and installed "Need Help" Buttons so shoppers can summon assistance. Still others are hoping that the automatic check-out solution will help frenzied customers and allow for a greater perception of speed and customer service.

Which model is more sustainable? Which model will, in the long-term, provide the client what they need? Let us take a real success story in retailing - Seattle based Amazon.com is now the world's largest bookseller globally. The era of the brick and mortar book shop is virtually over, and has resulted in a number of changes in the industry, publishing world, and even the way consumers shop. Amazon is able to switch its strategy with almost the touch of a button, and has such a sophisticated set of algorithms that it is almost as if one has a personal shopper at all times -- and not just for books. Obviously, this is succesful since the company posted revenues of almost $50 billion in 2011 (Rosenthal 2009, amazon.com, 2012).

Why does Amazon's model work, and why has the company grown from a bookstore to providing almost everything one could need including, in some urban areas, groceries. There is no simple answer, but certainly Amazon does two things: it makes it easy for the consumer to check out (1-click on mobile devices, shopping cards that can be saved, multiple payment and shipping options), and the company's software is a powerful tool that can recommend genres, individual purchases, and even ancillary items simply because one browsed them or, if wanted, receive an email notification letting the client know their favorite author or product is now available.