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The Effect of Automated Cashiers on Supermarket Employment and Customer Satisfaction

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The Effect of Automated Cashiers on Supermarket Employment and Customer Satisfaction
The Effect of Automated Cashiers on Supermarket Employment and Customer Satisfaction New Jersey City University
Abe Mohammad
Ginna Ruiz
Gina Gasbarro
Rejina Dhakal
Cornelius Ongera

Quantitative Methods for Business Decisions, BUSI 603.

Professor Rosilyn H. Overton

The Effect of Automated Cashiers on Supermarket Employment and Customer Satisfaction Grocery stores, known as supermarkets, sell fresh and preserved foods. Some also sell prepared food, such as hot entrees or salads; many are also introducing fresh sushi daily. There are supercenters with over hundreds of employees which provide a variety of consumer services, and sell numerous food and nonfood items, to traditional supermarkets to convenience stores with small staffs and limited selections.

Grocery store management is becoming increasingly difficult and technical due to new software systems. The big superstores maintain millions of dollars in yearly revenue. Some managers can be responsible for up to hundreds of employees depending on the size of the store, tracking products, manage budgets using specific software, and assess products profitability. Supermarket managers must make strategic decisions on whether or not to hire more cashiers.

Providing customer satisfaction is an important factor to retailers. Consumers are demanding better and faster service and with the rising cost of labor, businesses are looking to other options. Corporations have come up with technological innovations, such as automated checkouts, in the hope that these innovations will cost less, without involving too much personal interactions. Typically grocery stores are able to save between 120 hours to 180 hours a week in labor with automation. Studies suggest that when a customer spends an extensive amount of time waiting on line, they manifest a negative reaction towards the store. Managers must decide which systems to



References: Giorgianni, A. (2010). Supermarket self-checkout: No thanks, I already have a job. Retrieved from http://news.consumerreports.org/money/2010/02/self-checkout-is-a-pain-retail- shopping- supermarket-automated-longer-checkout-lines-scanner-no-cashi.html Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2012-13 Edition, Cashiers, on the Internet at http://www.bls.gov/ooh/sales/cashiers.htm (visited April 05, 2012). Soda Head News. (2011). Are self-help checkout lanes better than a cashier?. Retrieved from http://www.sodahead.com/united-states/are-selfhelp-checkout-lanes-better-than-a-cashier/question-2167535/ Hanna, C. (2011). How supermarkets work to enhance the customer experience. Retrieved from http://www.customerthink.com/blog/how_supermarkets_work_to_enhance_the_customer_experience Woods, D. (2009). Walmart’s new automated checkout stations. Retrieved from http://www.helium.com/items/1415686-Business-Issues Joyner, J. (2011). Supermarket self-checkouts being replaced with people. Retrieved from http://www.outsidethebeltway.com/supermarket-self-checkouts-being-replaced-with-people/ CTI Career Search. (2011). The Economic Consequences of Job Automation. Retrieved from http://www.citytowninfo.com/career-and-education-news/articles/the-economic- consequences-of-job-automation-11030802 Investors Place. (2011). McDonald’s to replace cashiers with touch screens. Retrieved from http://money.msn.com/top-stocks/post.aspx?post=05e86818-95ff-4f5c-ba27-9311a45cdb6b Anand, A. (2011). Welcome valued customer … to more self-checkouts. Retrieved from http://www.msnbc.msn.com/id/43729757/ns/business-retail/t/welcome-valued-customer-more-self-checkouts/#.T2tzAMV1Iqw Klimas, L. (2011). Are self-checkouts already fading away? The numbers may surprise you.

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