Small-format stores don't need AI shopping cart

In recent years, there has been a growing trend towards the use of AI shopping carts in retail stores. It seems that smart shopping carts are more suitable for large and medium grocery stores , do small-format stores need AI shopping cart ?

Before answering this question, let’s see a news in retail industry .

Target , one of America’s largest and most popular retailers, with a loyal customer base that contributed to a nearly 3% rise in sales to $107.6 billion last year, announced that it decided to close 4 small-format stores in this spring.

The main reason behind which is that the decision to close them was related to the small-format stores’ performance and foot traffic. These small-format stores are about 50,000 square feet or less.

While these carts can be beneficial for larger stores with extensive inventories and multiple floors, smaller-format stores may not necessarily require such advanced technology. There are 3 reasons.

(1)   Small-format stores size are not suitable for AI shopping carts.

These stores are typically much smaller than traditional supermarkets, making it easier for customers to navigate and find what they need. With a smaller inventory, customers are less likely to require assistance or additional information about products. Moreover, small-format stores often specialize in a particular product category or niche, meaning that customers who shop there are likely to be familiar with the products and their features.

What’s more, the small-format stores don’t have enough space for AI shopping carts to go through from the aisle.

(2)   The cost of implementing AI shopping cart is high, this is an obstacle for small-format stores .

AI shopping carts can be quite expensive than ordinary shopping carts. For a small-format store, the investment may not be justifiable, especially when the store's inventory is limited. Instead, the store may opt for more affordable solutions such as handheld scanners or QR codes that customers can scan with their smartphones.

(3)  The maintenance of AI shopping carts can be a significant ongoing expense.

These AI shopping carts require regular servicing and software updates to ensure they function correctly, and any malfunctions can lead to downtime and lost sales. For smaller stores with limited staff, the cost of maintenance and repairs may be prohibitive, and the resources required to maintain these systems may be better utilized elsewhere.

In conclusion, small-format stores may not necessarily require AI shopping carts, especially when considering their size, inventory, cost, and maintenance requirements. Instead, these stores may benefit from more affordable and straightforward solutions that are better suited to their needs.

While AI shopping carts can be useful for medium and larger stores, it's essential to consider each store's specific requirements before investing in this technology.

Ultimately, retailers’ goal are always to provide customers with a seamless and enjoyable shopping experience, and this can be achieved from many aspects. But for small and large stores, AI shopping carts solutions are no doubt good solutions. (Author : SuperHii, Cindy Xin）

Tags: AI shopping cart, retailers, larger store, small format stores;

Reference: https://www.retaildive.com/news/target-closing-four-small-format-stores/646006/