TURKISH RETAILER AIMS FOR CASHIER-FREE CHECKOUT

DENISE POWER

ISTANBUL, Turkey -- Migros Turk, a supermarket chain here operating nearly 300 stores in several retail formats, is gearing up to test what would be its first store outfitted exclusively with customer self-checkout systems.

The company has not yet developed the cashier-free format, but ongoing testing of self-checkout systems from two technology vendors will provide the experience and results that will determine how such a format could work.

Migros is currently testing technology provided by NCR, Dayton, Ohio, and also by another vendor, which was not identified by the retailer.

"After we feel confidence with the system, first we will increase the number of self-checkouts per store, then try fully self-checkout equipped stores," said F. Bulend Ozaydinli, general manager.

Although several U.S. supermarkets have tested self-checkout technology, only two retailers are known to have operated stores equipped only with self-checkout systems. A U-Check store owned by International Automated Systems, American Fork, Utah, is currently testing self-checkout technology it developed. In addition, Overwaitea Food Group, Vancouver, British Columbia, once tested a Smart! Market store, outfitted only with self-checkout technology. That store's systems were not equipped with automated payment functions, however, so cashiers were needed to complete transactions. Overwaitea abandoned that project a few years ago.

Ozaydinli said self-checkout technology allows Migros to offer better customer service because shoppers can take control of the checkout process. "Self-checkout is an option for our customers when the traditional checkout lanes are busy and they want to finish their shopping quickly," he said.

Going forward, the retailer intends to deliver interactive promotional campaigns through the self-checkout systems, Ozaydinli said. Although he did not elaborate how that program would be executed, it's likely that the same color monitors used to guide shoppers through the automated-checkout process could also be used to deliver promotional messages.

Migros Turk operates about 122 Migros grocery stores and it's those operating under the MM Migros and MMM Migros banners that are slated to be outfitted with the systems next year. Ozaydinli indicated nearly 200 self-checkout systems would be installed but did not say whether it would be technology provided by one vendor or a combination of both.

Self-checkout technology has already resulted in reduced labor costs, he said, but he did not disclose actual savings.

"From the managerial point of view, the system presents opportunities to improve customer service, which is the main principle of Migros Turk," Ozaydinli said. "It can reduce customer queues before checkouts during heavy hours, give customers more control over the transaction and protect privacy of the purchase," he said.

In addition to MM Migros and MMM Migros stores, the retailer operates M Migros stores, a smaller format with a limited selection of nonfood items. The company also operates about 160 stores under the names Sok, Ramstores, Ramstore Shopping Center and Migros Shopping Center.