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FRANKLIN, Tenn. - Self-service shopping will generate transactions worth $70 billion in 2004, according to a new study from IHL Consulting Group. The study forecasts that the value of these transactions will increase to over $330 billion by 2007 as many more systems are deployed in the next few years.
The "2004 North American Self-Checkout Systems Market Study" details the trends as well as the quantitative functions of the self-checkout market, including system shipments, installed base, market value, key technology vendors, and the value of transactions through these systems.
The report also includes a four-year forecast for shipments, installed base and market value, and an analysis of projected penetration in key retail segments.
"We live in an age where self-sufficiency often reigns supreme, and time is at a premium," said Greg Buzek, president of IHL Consulting Group, an analyst firm and consultancy that serves retailers and retail technology vendors. "New self-service technologies are emerging that will revolutionize the way we shop for goods and services.
The report provides data, charts, and graphs on self-checkout trends and challenges, key vendors, retail segments, market opportunities, and forecasts. Some key insights from the report:
- In stores currently using self-checkout systems, as much as 40 percent of the total number of transactions now go through the self-checkout, allowing retailers to provide more customer assistance within the aisles to help customers find products.
- More and more retail segments are adopting self-checkout. The Home Depot now has more than 3,200 lanes installed.
- The key technology players in self-checkout are NCR, IBM, and Fujitsu Transaction Solutions. NCR is currently the dominant player, but IBM and Fujitsu have recently entered the market through key acquisitions, bringing with them significant point-of-sale success.
"The No. 1 challenge facing retailers of all sizes is, 'How do we compete with Wal-Mart?'" said Buzek, adding that self-checkout systems are allowing retailers to move labor from checkouts to other areas of the store, creating a differentiation in customer service that can be used to compete with the world's largest retailer.