A Store Without a Checkout Counter? JCPenney Presses on with Retail Revolution

[donnay]

A Store Without a Checkout Counter? JCPenney Presses on with Retail Revolution

(...)

Johnson explained that physical retailers should be able to do everything an online-only retailer like Amazon does and more—including face-to-face customer service and options such as in-store pickup.

Most noteworthy of all, Johnson announced JCPenney’s plans to completely change the checkout experience at stores. Using advanced Wi-Fi networks, mobile checkout, RFID (radio-frequency identification) tracking systems for goods, and all sorts of self-checkout possibilities, JCPenney will get rid of cashiers, cash registers, and checkout counters, the staples near the exits of virtually every store, as soon as 2014.

“Think of a physical store without a cash rep,” Johnson said. “About 10% of all the money we spend, half a billion dollars a year, goes to transactions. Well that could be done through technology.” The money saved could then be used to help bolster customer service.

Will consumers embrace a cash-less, cashier-less, checkout counter-less store? Investors seem to like the idea. After Johnson’s statements made news, JCPenney’s stock jumped to over $21 per share, after trading for around $19 early on Wednesday.

Continued...

All these nice corporations setting us up for the cashless grid--another UN agenda

 

[Expatriate]

 

[moostraks]

Well that will be the last of my shopping with them if they want to go complete self check out. I hope they fail, utterly and completely, as an example of how important a human factor is in retail. I am not one of those who wants a hovering sales associate, but the sterile environment of a tracking system and wireless grid is nauseating. I thought that many of the places that were putting in self checkouts were removing them because of cost factors and lack of use?

 

[ShaneEnochs]

I'm with moostraks. On top of that, it'll make it so much harder for someone just entering the workforce to find a job. Cashiering jobs are a staple among high school students. Heck, most of my jobs have involved cashiering. I'd hate for stores to make it obsolete in the name of "progress".

 

[Yieu]

“Think of a physical store without a cash rep,” Johnson said. “About 10% of all the money we spend, half a billion dollars a year, goes to transactions. Well that could be done through technology.” The money saved could then be used to help bolster customer service.

Lets remove the customer service aspect in order to help bolster customer service which would at that point be non-existent?

Customer service means having someone at the register.

 

[ghengis86]

You don't have to pay automated self-checkout machines minimum wage. Or provide health insurance. Or withhold taxes. Or pay social security taxes. Or pay unemployment fees/taxes/insurance. Or worry about discrimination lawsuits. Or collectively bargain.

The government's mandates incentivize automation and disincentivize hiring people.

 

[specsaregood]

Lets remove the customer service aspect in order to help bolster customer service which would at that point be non-existent?

Customer service means having someone at the register.

No it doesn't. They could alternately staff the men's clothing areas with women willing to help you pick out a better outfit, prop up your ego and keep you from getting stuff that doesn't "match". That would be one example of improving customer service without staffing checkouts.

 

[madengr]

I'd rather go in the store, get what I need, and leave. I hate hovering sales people.

Why preserve a menial job of running items over a scanner and bagging them? Used to be they had to type in the price. Soon all items in your cart will be instanly tallied via RFID, which is allot better than removing them all, scanning them, then putting them back in. Sounds like buggy whip manufacturing preservation.

Anyway, I'm looking forward to Amazon's local delivery.

 

[donnay]

I'd rather go in the store, get what I need, and leave. I hate hovering sales people.

Why preserve a menial job of running items over a scanner and bagging them? Used to be they had to type in the price. Soon all items in your cart will be instanly tallied via RFID, which is allot better than removing them all, scanning them, then putting them back in. Sounds like buggy whip manufacturing preservation.

Anyway, I'm looking forward to Amazon's local delivery.

That menial job may put food on someone's table.

 

[ShaneEnochs]

That menial job may put food on someone's table.

It did mine for several years.

 

[Yieu]

No it doesn't. They could alternately staff the men's clothing areas with women willing to help you pick out a better outfit, prop up your ego and keep you from getting stuff that doesn't "match". That would be one example of improving customer service without staffing checkouts.

A female employee helped me pick out a suit a JCPenney when I knew nothing about suits; she made sure it was something that fit well and she knew how to fit it by eye, and even found one at a discount. Then she rang up the items at the register. That's greater customer service to me, and they're offering it now at some stores it seems. Good customer service is often more a service offered by the individual than the company, because not everyone knows it well.

 

[Cowlesy]

No it doesn't. They could alternately staff the men's clothing areas with women willing to help you pick out a better outfit, prop up your ego and keep you from getting stuff that doesn't "match". That would be one example of improving customer service without staffing checkouts.

So crazy, it might just work. You should send that one to Bill Ackman.

 

[Yieu]

So crazy, it might just work. You should send that one to Bill Ackman.

Read above. It seems they don't need to lower customer service in other areas to achieve this.

 

[specsaregood]

A female employee helped me pick out a suit a JCPenney when I knew nothing about suits; she made sure it was something that fit well and she knew how to fit it by eye, and even found one at a discount. Then she rang up the items at the register. That's greater customer service to me, and they're offering it now at some stores it seems. Good customer service is often more a service offered by the individual than the company, because not everyone knows it well.

That's good to know. But actually ringing up the suit was not the good customer service part of the experience was it?

 

[Austrian Econ Disciple]

That menial job may put food on someone's table.

Right, let's all make our lives less convenient for the sake of an antiquated 'job'. Of course that job would put food on the table, but so will that same money they are shifting into more customer service. Money isn't just lost when a certain job or industry ceases to exist. This is why protectionists do not understand any economics whatsoever.

 

[Yieu]

That's good to know. But actually ringing up the suit was not the good customer service part of the experience was it?

It is more attentive than leaving you to automation, and it was appreciated.

 

[angelatc]

No it doesn't. They could alternately staff the men's clothing areas with women willing to help you pick out a better outfit, prop up your ego and keep you from getting stuff that doesn't "match". That would be one example of improving customer service without staffing checkouts.

Yes, but does anybody actually think that will happen? Or it it does...will it last? I think the arguments about the poor high school students is misguided - people always say automation will drive people out of work but the cotton gin didn't wipe out cotton production. Nor did robotics pare down the size of the auto workers union. But there's no way I'll believe that Penney's is going to take the money they're saving in cashier costs and invest it in people who departmentally specialize.

 

[specsaregood]

It is more attentive than leaving you to automation, and it was appreciated.

Well, it doesn't sound like they want to leave you to automation like self-serve checkouts; but make it so there is no "checking out" to do other than shake the helpful young lady's hand and thank her right before leaving with your suit. sounds nice to me. eg: make it so the focus of the staffs job is to make sure you have a good experience rather than the focus being on manually ringing up prices. that just sounds archaic.

 

[Austrian Econ Disciple]

Yes, but does anybody actually think that will happen? Or it it does...will it last? I think the arguments about the poor high school students is misguided - people always say automation will drive people out of work but the cotton gin didn't wipe out cotton production. Nor did robotics pare down the size of the auto workers union. But there's no way I'll believe that Penney's is going to take the money they're saving in cashier costs and invest it in people who departmentally specialize.

Right, but even if they don't that money is going to go somewhere. I doubt JCPennies is just going to go all Scrooge McDuck on us, considering money's only usefulness is when it is actively being exchanged. Fiat money in particular has very little use otherwise -- maybe toilet paper, or fire starting material.

 

[angelatc]

Why preserve a menial job of running items over a scanner and bagging them? Used to be they had to type in the price. Soon all items in your cart will be instanly tallied via RFID, which is allot better than removing them all, scanning them, then putting them back in. Sounds like buggy whip manufacturing preservation.

That's exactly what it is. People might as well be digging ditches and filling them back in.