Self-checkout devices are growing in number by more than 10% each year, according to Greg Buzek in a recent blog. So, contrary to some rumors circulating through the media, self-checkout is not dead or dying. In a recent consumer study, NPD Group has confirmed that consumers are increasingly interested in self-checkout technology. The study showed that when grocers implement self-service, approximately 35% of transactions are completed using the technology. Additionally, nearly 50% of U.S. consumers want stores to offer self-checkout. But to offer a successful self-checkout solution, retailers must consider a number of factors and determine the best implementation strategy. During this upcoming webinar, attendees will learn about the top 5 strategies that will ensure successful self-checkout in grocery stores. Real-world case studies will shed light on key self-checkout tactics. Attendees also will learn more about the recent research completed by NPD, as well as an in-depth look at IHL’s “2011 Self-Checkout Kiosk Study,” presented by Greg Buzek.

1. #LiveWebinar November 15, 2011
Self Checkout Is
Alive And Well
#LiveWebinar

2. Welcome to the Webinar
Your GoToWebinar Attendee Viewer is made of 2 parts:
1. Viewer Window 2. Control Panel
Type your question here
#LiveWebinar

3. Follow this Webinar on Twitter
#LiveWebinar hashtag.
#LiveWebinar

4. About Retail TouchPoints
 Launched in 2007
 Over 20,000 subscribers
 To provide executives with relevant,
insightful content across a variety of
digital medium
Free subscription to our weekly newsletter:
www.retailtouchpoints.com/signup
#LiveWebinar

5. Panelists
Carrie Smola Mike Inderrieden
Human Factors Self-Service Dir. Greg Buzek
Solution Marketing Director
NCR Corporation President
NCR Corporation
IHL Group
Moderator
Debbie Hauss
Editor-in-Chief
Retail TouchPoints
#LiveWebinar

6. Self-Checkout On The Rise
61% of retailers plan to increase their
investment in store operations in 2011.
Those dollars are likely to go to new technologies and process
improvements, including self-checkout and other in-store
technologies.
- NRF 2011 Retail Horizons report
#LiveWebinar

7. Self-Checkout Enhances
The Customer Experience
Close to half (48%) of retailers will have
installed or plan to install self-checkout
- RSR Research, 2011
In a recent survey of 16,000 consumers, Self-Checkout ranked as
the number-one most valuable supermarket technology that
benefits the customer experience. 65% of U.S. consumers
consider self-checkout important.
- Empathica, 2011
#LiveWebinar

8. Supermarkets Sell Self-Checkout
As consumers become more used to self-checkout in
supermarkets, they appreciate it more in other retail
environments…
When new technology emerges, it takes time for the providers to
become adept at using it successfully. This has been true for self-
checkout technology…
Some supermarkets removed self-checkout due to some glitches,
but the general trend among supermarkets has been to expand
self-checkout.
– Elliot Maras, editor at vendingmarketwatch.com
#LiveWebinar

9. Self-Checkout Benefits
Both Retailers and Shoppers
Self-checkout systems benefit retailers by providing cost
efficiencies from reduced staff requirements, and indirectly
reduced personal training costs and other variable costs which
proportionate to the number of staff employed.
Shoppers benefit from the reduced checkout time, better
service, perceived privacy and anonymity.
- International Journal of Research in Marketing
#LiveWebinar

10. Advancements in Self-Checkout
SCO systems are now re-engineered or specifically
manufactured for SCO offering improvements in functionality,
form factor, costs and reliability.
SCO is a proven solution for increasing positive customer service
metrics by reducing queues at checkout, trimming labor costs
and delivering a strong ROI that pays for the technology in 12-18
months.
- Kioskmarketplace.com
#LiveWebinar

11. Improvements Driving the
Adoption of Self-Checkout
1. Better hardware and software designs
2. Improved system reliability
3. Cashier interventions
4. Easier to train and use
5. Integration to POS
6. Coin and note recycling
7. Express credit and ID verification
8. Computer visioning solutions
9. Mobile technology integration
10. Advanced monitoring and diagnostics
- Kioskmarketplace.com
#LiveWebinar

12. GREG BUZEK
PRESIDENT
GREG@IHLSERVICES.COM
WWW.TWITTER.COM/GREGBUZEK

13. " Rapid Project RFP Toolkits (with C-Core)
" POS, WFM, ERP, HW Maintenance, Fresh Item Mgt.
" Research and Advisory Services
" POS, POS Printers, Self-Checkout, Supply Chain
Software, Kiosk, WFM, Price Optimization, etc.
" POS by Vendor Share
" Sophia - Technology Data Service
" WorldView IT Sizing Models
" IT sizing for hundreds of Retail/Hospitality
Technologies
" SMB Sizing – retail outlets, cashpoints
" Custom Analysis

14. Haves and Have Nots
" It’s not a 99% verses 1%, but 19% verses 81%
" It’s really a battle between the haves and the
have nots….
" And that is those who have a job and preserved their
income…and those who are underemployed or worse.
" Those who have preserved incomes, spending, taking
advantage of better terms.
" Credit is back

15. Retail Sales Drivers
" Oil prices will spike 15-25% in the first quarter of
2012.
" Long term trend is still up.
" But election year so we will see what happens with oil
reserves.
" First groups to feel the pain from oil will be restaurants/
hospitality, then clothing stores.
" Will see further move to private brands and discounters.
" Those with jobs are less afraid of losing them
" But before then, Christmas supposed to be up 2-6%

16. Current State of the Store
" Economy creating sea change in the industry
" Store vacancies/Pop-up stores/Leases renegotiated
" Overstocks remain a huge problem. $65 Billion N/A
" Most of labor focused on merchandise is focused on
markdowns.
" True cost is cost+labor+signage+transport
" WW – Inventory Distortion $775B
" Key Technologies & Concepts Affecting Market
" Server Virtualization – Some move to POS Virtualization
" HaaS POS
" Store Associate Level Mobile
" Self Service (various forms)

17. Self-Checkout Trends
" Mainstream press looking for someone to blame.
" A couple of announcements got tremendous exposure
" StoreFront Backtalk – MSNBC – Drudge Report
" Feeding frenzy….
" Reality
" Installed base of Self-Checkout units continues to grow double
digits as new retailers put in the machines.
" Shipments up 6% in 2011.
" New form factors such as mini-size units open up prepared food
areas and these other segments.
" New segments such as Convenience Stores/Drug Stores
continue to deploy.

18. Self-Checkout Customer Opinions
Source: IHL Group Self-Checkout Study

19. But Self-Checkout Not For Everyone
" Albertsons LLC looking for a way to compete with Wal-
Mart, Safeway, and Kroger
" All three giants focused on EDLP
" Spin, spin, spin.
" Doesn’t work everywhere.
" 4 lanes store should do $300k plus in weekly turnover
" Works best in professional areas or transient areas
" Works well in bi-lingual areas, but not so well in retirement
communities.
" Traditionally, where it was not liked the most was liberal college
areas.
- But is used heavily

20. Some Issues Affecting Self-Checkout
" It’s not the economy, it’s the interventions
" Age/Qty restricted merchandise biggest complaints
" Store policy, signage can make a HUGE difference in
satisfaction level of using self-checkout.
" Those that like self-checkout are a far larger group
than those who are against it.
" When most self-checkouts were installed, retailers
could not find labor.

21. Bottom Line
" Self-Checkout continues to grow in shipments and
installed numbers each year.
" Those uninstalling are doing so for strategic reasons
beyond self-checkout…but spin, spin, spin.
" New formats are bringing new opportunities.

22. RetailROI SuperSaturday
Saturday January 14, 2012 9am-4pm
Free to Retailers
Free to Retailers - Sponsorships available for Vendors
Register www.tinyurl.com/supersaturday2012

23. Greg Buzek
IHL Group
greg@ihlservices.com
www.twitter.com/gregbuzek
+1 615-591-2955

24. Carrie Smola
NCR SelfServ™ Checkout
Consumer and Retailer
Self-Checkout Trends

25. Is Self-Service Better Service?
• Consumer Choice with Retailer Benefit
– NCR SelfServ Checkout Customers Report
• Up to 40% Queue reduction
• 20% Throughput increase
• 7% Revenue increase per labor hour
The perfect combination -
proven ROI with enhanced
customer satisfaction
NCR Confidential 25

26. What U.S. Consumers Want: By The Numbers
NCR
Confidential

27. Self-Service Preference Spans Generations
NCR
*Source: NPD Consumer Study 2011 Confidential

28. What Retailers Are Saying…
Major Home
Improvement store
said that their
“stores have used
the [self- checkout]
systems for so long,
having them is more “It's simply about
about maintaining innovation and “[Self-checkout is]
customer being a 21st probably the most
expectations.” century retailer.” rewarding thing we
- Brendan Wonnacott, Tesco
ever did. It's
(Fresh & Easy) helping our
employees get
more done in a
day.”
- Chris Dwyer, QuickChek
NCR
Confidential

29. Self-Checkout Outlook Remains Strong
“ The total number of SCO “ Shipment numbers are “ By 2016 a total of 324,000
shipments worldwide rose forecast to surpass units will be in use around
17% in 2010.” 60,000 in 2016.” the world.”
NCR
Confidential

30. Mike Inderrieden
NCR Human Factors Engineering
Top Five Strategies to Ensure Successful
Self-Checkout in Grocery Stores

31. Strategies for Self-Checkout Success
1. Management Support
– Executive Sponsor communication
– Self-Checkout Champion
– Store Manager engagement
NCR Confidential 31

32. Strategies for Self-Checkout Success
2. Objective Setting and Reporting
– Corporate sets expectations for success
– Store management reporting tools
Suggest calls with top and
under performing stores
NCR Confidential 32

33. Strategies for Self-Checkout Success
3. Staffing
– Dedicated attendant
– Balance full-service lanes
– First to open and last to close
NCR Confidential 33

34. Strategies for Self-Checkout Success
4. Attendant Training
– Both technical and behavioral training
– Refresher training
NCR Confidential 34

35. Strategies for Self-Checkout Success
5. Constant Improvement Culture
– Keep self-checkout system up to date
– Monitor operational initiatives
NCR Confidential 35

36. The Self-Checkout Experience
Employees Operations and
Support
Customers
All Equally Critical Components for a Successful Implementation
NCR Confidential 36

37. Q&A Session
Your GoToWebinar Attendee Viewer is made of 2 parts:
1. Viewer Window 2. Control Panel
Type your question here
#LiveWebinar

38. Q&A • Panelists
Carrie Smola Mike Inderrieden
Human Factors Self-Service Dir. Greg Buzek
Solution Marketing Director
NCR Corporation President
NCR Corporation
IHL Group
Moderator
Debbie Hauss
Editor-in-Chief
Retail TouchPoints
#LiveWebinar

39. Thanks for attending!
You can download this
presentation here:
http://rtou.ch/self-checkout
#LiveWebinar

40. Contact The Panelists
carrie.smola@ncr.com mike.inderrieden@ncr.com greg@ihlservices.com
#LiveWebinar