By staying on top of the current and future market trends only can retailers address them to thrive successfully in the retail business and to strategically differentiate themselves from competitors. One of the 10 important retail trends not to be missed out in 2023 is self-service checkout or cashierless checkout, as some call it.
Self-checkout systems work in basically two alternatives, via stationary self-checkout terminal or mobile self-checkout.
There is no doubt self-checkout is gaining popularity and on a rise from the global perspective as indicated by Gitnux in the blog: “The global market for self-checkout terminals is expected to grow at a CAGR of 11.6% between 2021 and 2026”. This suggested that many shoppers are opting for self-checkout as their preferred method of checkout over traditional cashier-assisted checkout when the option is available. Some of the contributing factors to this are customer satisfaction, autonomy, privacy, convenience and speed. Self-checkout system is common in various industrial domains especially supermarkets and hypermarkets as reported by KBV research.
More convenience, but also opportunities for fraud
Nevertheless, every coin has two sides. Self-checkout can be an easy target to fraud and theft, in fact quite easily. In our previous blog, we mentioned that 58% of consumers said theft was easy or very easy in self-checkout lines. Another statistic reported in Gitnux blog has mentioned “self-checkout theft is 5 times more likely to happen than theft via traditional cashier checkout”. Why is it so? This crime of opportunity, can happen due to missed scans or deliberate theft which varies depending on the motivation or simply by luck. However, no solution is perfect, and the advantages of self-checkout far outweigh the risk. Importantly, retailers need to heighten their awareness of the potential risk of fraud when using this system and be prepared for possible scenarios.
Reduction of unnecessary rescans through AI
With advanced technology driven by Artificial Intelligence (AI), fraud detection processes can be improved and here comes GK into the picture. AI allows retailers to collect data to predict patterns, identify frictions in checkout, and better understand how theft occurs. A probability of fraud can be determined and lead to issuance of recommendation for a rescan or a staff assistance when necessary. In fact, there are many possible ways that advanced fraud detection in self-checkout system can identify potential fraud, fundamentally is to reduce unnecessary rescans for shoppers at the same time.
Interested? Visit our website and contact us to learn more about GK AIR Fraud Detection solution.
