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Individual Assignment 1: How The Use of Scan & Go Systems Affects Retailers' Costs?

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Kerjaan Fira
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15 views

Individual Assignment 1: How The Use of Scan & Go Systems Affects Retailers' Costs?

Uploaded by

Kerjaan Fira
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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INDIVIDUAL ASSIGNMENT 1

Safira Nur Sabrina

How the use of Scan & go systems affects retailers’ costs?


Wal-Mart, like many retailers and companies in other modest-wage industries, have seen profit margins
pressured amid intense competition and rising wage pressures.  To increase productivity and
competitiveness among other retail companies, Walmart re-engineering virtually every aspect of its
business, one of them through scan & go system which lets customers skip the checkout line. Instead,
customers scan their grocery items as they shop, complete their purchases online, and simply show their
receipts on the way out. Since there’s no need for a cashier at every register, self-checkout reportedly
reduces labor costs as one employee can easily monitor several self-checkout counters. However,
several analysts point out that cashiers aren’t necessarily fired over self-checkout, but rather redeployed
to different, more complicated job functions. 

Does the decision to abandon the Scan & go systems is related to costs? Explain.
Yes. At first, the aim of implementing a scan & go system might be to reduce labor costs. However, from
an economic perspective, there is also the opportunity cost lost by eliminating conventional cashiers.
This is because not everyone likes this new-system which causes them to prefer to go to other
conventional retailers. Furthermore, the opportunity for point-of-sale impulse purchases is reduced.
Sales of items like candy bars, magazines, and beverages, which are strategically positioned near the
cash register, will suffer as space around automated checkouts is limited. Also, since fewer employees
are monitoring self-service lanes, theft and miss-scanning is a greater risk. Companies can mitigate that
risk with additional layers of protection, including security cameras, customer notices, and enhanced
employee training, but in the end, this will increase the cost again.

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