From Walk In to Just Walk Out: How Technology Is Changing Retail
A "walk-in shop" generally refers to a physical retail store where customers can walk in to purchase products. It represents the traditional retail approach where customers physically select their purchases. In the context of a smart store, payment is made via a smartphone app after the pick-and-scan process. Therefore, a cashier or a trip to the checkout is no longer necessary.
The “Just Walk Out” technology, on the other hand, is a specific technology developed by Amazon to revolutionize the shopping process. It's a cashierless shopping system where customers enter the store, select their items, and then simply leave without having to wait in line at a traditional checkout. The technology uses advanced sensors, cameras, machine learning, and RFID technology to automatically scan the selected items and charge the purchase amount to the customer's Amazon account. No interaction with cashiers or checkouts is required.
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The 'Just Walk Out' technology: A revolutionary shopping experience
The “Just Walk Out” (JWO) technology allows customers to simply walk into a store, take the products they want, and then leave without having to wait in line at the checkout. This innovative technology offers a seamless and convenient shopping experience that surpasses traditional shopping methods.
How does the “Just Walk Out” technology work?
JWO technology uses artificial intelligence, image recognition, and sensors placed in the store's aisles and on its shelves. This technology tracks the items selected and moved by customers. To use the JWO feature, customers must use a mobile app before entering the store. The app processes customers' personal information and payment preferences.
The shopping process with "Just Walk Out" technology is incredibly simple: Customers scan a code upon entering the store. The selected products are automatically added to or removed from the virtual shopping cart. Upon leaving the store, payment is processed automatically via credit card. If desired, customers can receive their receipt by entering their email address at a kiosk.
The pioneers and new market participants
Amazon and Alibaba pioneered the introduction of "Just Walk Out" technology. But now new players are entering the market, and Amazon is sharing its technology with other retailers, making this revolutionary shopping method accessible to a wider audience.
Data protection: Opportunities and risks
The introduction of JWO technology naturally raises questions regarding data privacy. There are potentially positive effects from privacy-enhancing features designed to protect customer privacy. However, concerns also exist regarding constant monitoring, the use of data for other purposes, a lack of transparency, and the potential vulnerability of certain individuals.
Human factor
Even in a well-designed system, the human factor should not be overlooked. However impressive the technological possibilities may be, the sociological aspect of human coexistence must also be considered. The face of autonomy is not the machine, but still the human being.
In an Autonomous Retail System (ARS) (see also the next section below), cashiers and other staff can be found in the aisles alongside the information center (service station). Even if only during regular opening hours, this is a humane overall concept. Jobs are not eliminated, and the shopping experience is not diminished; it has been optimized for the future, benefiting both retailers and customers.
bypass the checkout process
The “Just Walk Out” technology promises a groundbreaking shopping experience that could revolutionize the way we shop. With its seamless functionality and the ability to bypass the tedious checkout process, it will undoubtedly appeal to many customers. However, it's crucial to be aware that privacy concerns and potential risks also play a role. As consumers, we should therefore educate ourselves about how this technology works and its implications in order to make informed decisions.
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The revolution of the Smart Store concept: The combination of 2D codes, Metaverse and Smart Stores
In recent years, technological advances have significantly transformed the shopping experience. Smart stores, equipped with cutting-edge technology, offer customers personalized shopping experiences and enhanced interactions. However, the combination of three groundbreaking technologies—2D codes, Metaverse, and smart stores—promises to revolutionize the shopping experience even further, creating a completely new dimension of retail.
The 2D code and its diverse application possibilities in the Smart Store
1. The worldwide introduction of 2D codes, also called 2DD matrix codes
The 2D code is an evolutionary development of the traditional barcode. By 2027, the retail industry is planning a global initiative called "Sunrise 2027" to replace the traditional 12-digit barcode, which consists of vertical lines and is printed on packaging, with a two-dimensional, web-enabled version.
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2. Functionality and advantages of 2D codes in retail
The 2D code can not only store a larger amount of information, but also enables faster scanning by smartphones or scanners. This allows product information, prices, ratings, and even personalized offers to be transferred directly to the customer's smartphone in the smart store.
3. Augmented Reality (AR) and 2D Codes in the Shopping Experience
AR applications open up new possibilities for the use of 2D codes. Customers can use their smartphones to scan products and virtually project them into their surroundings to visualize them before purchasing. This creates an impressive and immersive shopping experience.
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The Metaverse: Virtual Reality and its Integration into the Smart Store
1. The Origin of the Metaverse
The metaverse is a virtual, collaborative, and immersive universe where users can interact and share digital experiences. It is based on technologies such as VR and AR and is gaining increasing importance in the gaming industry and social networking.
2. The Metaverse in Retail
The integration of the Metaverse into the Smart Store opens up a completely new dimension of shopping. Customers can visit virtual stores, test products in a digital environment, and interact with other shoppers and experts in real time.
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3. Virtual fitting rooms and digital showrooms
Thanks to the Metaverse, customers can virtually try on clothes by combining their own image with the clothing in the virtual showroom in real time. This enables better purchasing decisions and reduces returns.
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The synergy between 2D codes, Metaverse and Smart Stores
1. Interactive real-time product information
The combination of 2D codes and metaverse technologies allows customers to scan products in physical stores and instantly receive extensive information, product reviews and recommendations in the virtual space.
2. Personalized shopping experiences
The intelligent linking of customer profiles with the data collected in the Metaverse enables Smart Stores to present personalized offers and product recommendations in real time.
3. Community shopping in the Metaverse
The Metaverse creates a global community of buyers and experts who can advise each other and test products together. These social interactions enhance the shopping experience and foster customer loyalty.
Symbiosis of shopping experiences
The symbiosis of 2D codes, the metaverse, and smart stores will fundamentally change the way people shop. By seamlessly connecting physical and virtual shopping experiences, customers will benefit from unprecedented selection, personalization, and interaction. Smart stores will become places where reality and virtuality merge, creating an exciting, immersive, and social shopping experience. The retail industry faces an exciting future where technology has the potential to fundamentally revolutionize the shopping experience.
The Autonomous Retail System (ARS) - The birth of autonomous retailing
➡️ The Autonomous Retail System (ARS) was the groundbreaking concept that laid the foundation for the emergence of various smart store variants. It revolutionized retail by leveraging automation and autonomization to improve customer experience and operational efficiency alike. The idea behind the ARS was to create a seamless shopping experience where customers could shop autonomously and self-determined.
The different Smart Shop variants
Following the success of the ARS, various companies and retailers began developing different variations of it to meet the individual needs of customers and the demands of the market. Here are some of the notable variants:
Autonomous Smart Shops
These business models are based on the ARS and offer a similar shopping experience. Customers can navigate stores, select products and pay using smart shopping carts or mobile apps. Some advanced autonomous smart stores also use facial recognition and AI technologies to provide personalized recommendations.
Walk-in shops with Scan & Go
A walk-in shop is a physical retail store that allows customers to enter and shop without an appointment. Unlike online shops, walk-in stores offer customers the opportunity to enjoy the shopping experience, receive personalized advice from staff, and take products home immediately without waiting for delivery. The walk-in store is thus a traditional retail method that provides customers with a tactile and immediate shopping experience.
Walk-in shops with Scan & Go focus on the simplicity and efficiency of the shopping process. These shops typically do away with information desks and human cashiers. Customers can simply enter the store, scan products, pay for their selections via an app or the scanner, and leave without waiting. This model aims to reduce operating costs and enable fast checkout.
Scan & Go is a modern retail technology that allows customers to scan and pay for their purchases in-store independently, without queuing at the traditional checkout. The process is simple: the customer uses a smartphone or a special hand-held scanner to scan the barcodes of the products as they place them in their shopping cart. The items are automatically saved in a shopping list and the total price updates in real time. Once the customer has finished shopping, they pay the total amount directly via the app or scanner and leave the store without having to wait in line at the checkout. Scan & Go saves time and offers customers a faster and more convenient shopping experience.
It is important to note that this technology may be implemented differently in different stores and countries. Some stores allow you to place items in bring-your-own bags, while others require final checks by staff to prevent theft.
Pick & Go or Just Walk Out Shops
The “Just Walk Out” technology uses artificial intelligence, image detection and sensors in business to record the articles, select and move customers. Before entering the branch, customers must use a mobile app that processes personal information and payment preferences. When shopping, customers scan a code when entering, items are automatically added to the virtual shopping cart. The automatic credit card payment takes place when you leave the business. A shopping receipt can optionally be requested by email.
Unmanned Smart Shops
This variant goes one step further and relies entirely on the autonomy of the business. Unmanned smart stores are often small units that can be placed in busy areas, shopping centers or even public transport. Customers can select products, pay, and enter or exit the store without the need for human staff.
Personal Smart Shops
In contrast to fully autonomous models, personal smart stores still have a minimum number of human staff. However, these employees are not tied to cash registers, but rather serve as customer advisors or experts in specific product categories. The focus here is on providing expertise and a personalized shopping experience.
The crucial difference – customer experience vs. cost reduction
The key difference between the ARS and the various Smart Store variants is the emphasis on customer experience and autonomy. While the ARS aims to provide customers with a seamless and personal shopping experience, the other models focus more on cost reduction and efficiency for retailers.
The ARS maintains human interactions by incorporating information centers and human cashiers to assist the customer when needed and add a personal element. The other variants, such as unmanned smart stores and walk-in stores, largely forego human interaction in order to minimize operating costs and speed up the purchasing process.
While the ARS remains attractive to retailers seeking a superior customer experience, the other variants offer a cost-effective solution, particularly in high-traffic areas or for fast-moving products.
News and developments
Since the introduction of the ARS, many companies have jumped on the bandwagon and developed their own Smart Store variants. This has led to a growing variety of autonomous retail concepts that are continually influencing and evolving the market.
Some of the recent developments include the use of cutting-edge technologies such as Augmented Reality (AR) and Virtual Reality (VR) to further improve the shopping experience. Customers can virtually try out products and see how they would look in their home or environment before making a purchasing decision.
More on this in connection with the matrix code, which is scheduled to be used worldwide in 2027:
Furthermore, some smart store models have begun making their technology platforms available to other retailers, leading to a kind of “Smart Store as a Service” model. This allows smaller retailers to benefit from the advantages of autonomy and automation without having to make huge investments in the technology.
The development of ARS and the various smart store variants is far from over. The industry continues to be driven by innovative ideas and technologies, and autonomous retail is expected to see many more exciting developments in the coming years.
The basic consideration in the development of the ARS business model
The basic idea behind the ARS is that some people might be hesitant about a completely autonomous store. The human aspect, the connection and interaction with shop staff, plays a crucial role in traditional retail, creating a sense of familiarity and personalized service. In fully autonomous stores, some customers might feel that something essential is missing – the human touch.
The lack of a breakthrough for autonomous stores so far may therefore be due to the fact that the transition from traditional, labor-intensive stores to fully automated facilities still seems too abrupt to many people. Changing customer habits and expectations often takes time, and the acceptance of new technologies needs time to become established.
However, things could change in the coming years. As society gradually becomes accustomed to modern concepts like autonomous shopping, the barriers and reservations surrounding fully autonomous stores could gradually diminish. Advances in technology and retailers' ongoing efforts to improve the customer experience could also contribute to the growing appeal of autonomous business models in the future.
The increasing digitalization and automation in many aspects of daily life could also contribute to people becoming more open to modern retail concepts. Growing familiarity with self-driving cars, artificial intelligence, and other technologies could help autonomous stores be perceived as a natural part of our everyday lives.
However, it remains to be seen how exactly the acceptance of autonomous business models will develop. Retailers must continue to pay attention to finding the right balance between automation and personal customer service in order to meet customer needs and expectations.
The transition to fully autonomous stores will be a gradual process requiring time and adaptation. However, with advancing technological development and growing acceptance of modern concepts, autonomous business models could play an increasingly important role in retail in the coming years. It will be exciting to see how this innovative way of shopping evolves and becomes integrated into people's everyday lives.
Micro-Hub – The key, ingenious solution?
Logistics is constantly in flux. One challenge follows another: warehouse optimization, process acceleration, cost efficiency, CO2 reduction, automation, and competitive pressure. E-commerce is the primary driver of this development.
The prerequisites for micro-hubs already exist in Germany!
Converting the central warehouses of retail companies or logistics centers into micro-hubs would be possible without major problems. Initially, it would suffice to expand only a portion of the operation for micro-fulfillment and adapt it to the market using scaling solutions. For example, existing supermarket chains could be converted into micro-hubs, or a section of them could be restructured as a micro-fulfillment solution.
Concept: Autonomous and Automated Retail Systems Central Warehouse Logistics Center/E-Commerce Image: Xpert.Digital
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Shopping without waiting time: Rewe Pick & Go makes it possible
Rewe Pick&Go offers an innovative shopping experience with a cashierless option. Customers can shop conveniently without a cashier by using a special app where they can store their payment details. This ensures a smooth shopping process.
The Pick&Go process is incredibly simple. Customers download the app and register. They can then link their preferred payment methods, such as credit cards, PayPal, Google Pay, or Apple Pay, to their account and start shopping immediately.
The product range in the Pick&Go stores is extensive and diverse. Customers will find a wide selection of products, including fresh baked goods, loose fruits and vegetables, and frozen foods. The Trigo salad bar is particularly popular, allowing customers to create their own salads according to their individual preferences.
A key priority for Pick&Go is protecting customer privacy. Modern technology is used to process data securely. The computer vision software only captures information about selected products and their returns. No facial recognition or customer identification takes place after leaving the store. Personal data is carefully protected.
Not only Rewe, but also other German retailers such as Netto (Edeka Group), Aldi Nord, Aldi Süd, and the Schwarz Group are relying on cashierless stores using computer vision technology. In the US and UK, Amazon has also opened over three dozen cashierless stores, but recently closed eight Go stores for cost reasons.
The Pick&Go concept marks the beginning of a new era of shopping, and Rewe is leading the way. Customers are warmly invited to try out this new shopping experience for themselves and enjoy the freedom of cashierless shopping. Simply download the app, register, and you're good to go!
Just Walk Out and Amazon: An innovation in the shopping experience
Amazon has established itself as one of the leading online retailers and significantly changed the way we shop online. Now, the company has taken another innovative step to revolutionize the shopping experience – the introduction of “Just Walk Out” technology. This advanced technology allows customers to enter physical stores, take items from the shelves, and simply leave without having to wait in line at the checkout. In this report, we will take a closer look at Just Walk Out and its impact on retailers and customers.
1. What is Just Walk Out?
Just Walk Out is a modern shopping system developed by Amazon. It's based on a combination of sensors, artificial intelligence, and advanced algorithms. Its main goal is to make the shopping process seamless and convenient by eliminating traditional checkout lines. Customers can simply enter the store, take the desired products from the shelves, and leave without any further interaction.
2. How does Just Walk Out work?
The technology behind Just Walk Out is impressive. Upon entering the store, customers must open their Amazon app and link their payment information. Advanced sensors and cameras then monitor the customer's movements and actions within the store. Every product in the store is tagged with special labels that are recognized by the sensors. When a customer takes a product from the shelf, it is automatically added to their virtual shopping cart in the Amazon app. If an item is put back, it is also removed from the virtual cart.
3. Where can I find Just Walk Out?
Initially, Just Walk Out was launched in select Amazon Go stores. These stores were specifically designed for this innovative shopping experience. However, the potential of Just Walk Out isn't limited to Amazon Go. The company plans to make the technology available to other retail chains as well. It's quite possible that we'll see Just Walk Out in other stores in the future.
4. Advantages of Just Walk Out
Time saving
Customers no longer have to stand in queues at the checkout, which significantly speeds up the entire shopping process.
Efficiency
The technology minimizes the risk of errors at the checkout and enables a smooth shopping experience.
Staff reduction
Since cashiers are no longer needed, personnel costs could be reduced.
5. Challenges and Concerns
data protection
Some customers have privacy concerns, as the technology closely tracks their movements and interactions in the store.
Job losses
The introduction of Just Walk Out could lead to job losses for cashiers, which could cause social problems.
Technical problems
There is a possibility of technical malfunctions or problems with the system that could lead to inconvenience for customers.
6. Impact on the retail sector
The introduction of Just Walk Out has the potential to fundamentally change the retail landscape. Traditional stores may need to adapt or risk falling behind the technological advancements developed by Amazon. Some might try to adopt similar technologies to remain competitive, while others may choose alternative approaches to strengthen customer loyalty.
7. Future prospects of Just Walk Out
Given Amazon's success and the positive customer feedback on Just Walk Out, it's likely that this technology will be further developed and expanded. New features and improvements could be added to make the shopping experience even more enjoyable. Furthermore, other companies could develop similar technologies, further intensifying competition.
Technology in Retail
Just Walk Out is undoubtedly a fascinating step towards a seamless and convenient shopping experience. It demonstrates Amazon's commitment to innovation and the continuous improvement of the customer experience. While challenges and concerns exist, the benefits of this technology could fundamentally transform the retail landscape. It will be interesting to see how Just Walk Out evolves and how other companies respond to this revolution in retail.
REWE's Pick & Go and Amazon's Just Walk Out are based on the same basic idea
Generally speaking, both shopping systems are based on the same fundamental idea: customers can enter physical retail stores, select their products, and leave without queuing at a checkout or paying in the traditional way. The technology behind such systems uses sensors, cameras, computer vision, and machine learning to recognize the products a customer takes from the shelf and automatically deduct the cost from the customer's account.
Both function similarly. They differ only in branding and implementation, but at their core pursue the same goal.
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