9 News: Amazon Go! + Smart Phone Shopping
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By Richard Wood • Senior Journalist
'It's only going to get bigger': Appetite for smartphone shopping strong despite ending of supermarket trial, says expert
Grocery shopping by phone app is inevitable despite a major supermarket chain scrapping its pilot plan to banish checkouts from its stores, a retail expert said.
UK retail giant Sainsbury's announced it was ending a three-month trial of smartphone-only shopping at one of its stores in central London.
Tills were removed from its Holborn Circus store in April and customers had to scan their groceries using the company's Pay & Go app as they browsed the aisles.
But instead of quicker, more convenient shopping, the app resulted in long queues at the store's helpdesk as people tried to buy groceries with cash and cards.
Some customers found the mobile QR codes hard to scan when leaving the store. Other shoppers were unhappy to use their mobile data allowance to download the Sainsbury app.
Similar technology is being trialled in Australia by Woolworths and tech giant Amazon has piloted till-free stores in the US.
Australian online business expert Trent Rigby said customer appetites for app ordering remains strong despite the UK supermarket giant's experience.
"I don't think app ordering will be replacing the large traditional family grocery shop, but for those customers with smaller basket sizes think there is a huge appetite for it. And it's a trend that's only going to get bigger."
Mr Rigby, a senior analyst with Retail Oasis, said consumer unfamiliarity with the apps poses a short-term hurdle.
"I think – and it looks to be the case with Sainsbury's – that the initial take-up as consumers learn how to use the app may be a large obstacle."
But the long term outlook for app based shopping at smaller convenience style stores is strong.
"Consumers are now more urban and time poor, and as a result we're doing more frequent shops with smaller basket sizes.
"We've seen the rollout of self-checkouts throughout Australia and I think app ordering through your phone is the next evolution of that."
