Imagine grocery shopping without checkouts. Think of all the time you’d save, not waiting in the queue, no stacking the conveyor belt, - all this might become a reality with Amazon Go. Just a few days ago, Amazon released a video about an 1,800 square foot Amazon Go flagship store which will open next year in Seattle. Using a mobile app, shoppers check-in when entering the store. Inside, the app automatically identifies the items being purchased and charges the customers after they have left the store. about an 1,800 square foot Amazon Go flagship store which will open next year in Seattle. Using a mobile app, shoppers check-in when entering the store. Inside, the app automatically identifies the items being purchased and charges the customers after they have left the store.
For the US market, Amazon Go is an interesting concept but what effect will the new approach have on retailers in other countries, e.g. in Germany? Germans are very data-sensitive and also love paying in cash. It is unlikely that their scepticism and concerns about disclosing personal data during non-cash-transactions will change overnight. In Europe and especially in Germany almost 50 % of all transactions are still made in cash. In particular, for everyday shopping, 80 % of Germans pay cash. The ever-increasing number of Euros in circulation - up from about 8 million Euro in 2002 up to almost 20 million Euro in 2016 – demonstrates that cash remains important payment method in Europe.
Why do Germans remain loyal to cash? Reasons include the simplicity of keeping track of their money and spending as well as anonymity and privacy concerns. Cash remains the most popular payment method in Germany and is likely to do so for the foreseeable future.
But in the modern retail sector, stores have to be able to adapt flexibly to customer requirements and day-to-day situations. Shoppers are increasingly demanding a more positive, omnichannel experience. So German retailers offer a variety of payment methods to meet all kinds of customer requests. Amazon Go shows how to combine the convenient online shopping experience with the tactile advantages of in-store shopping. Amazon Go can therefore be seen as one innovative supermarket concept among many other possible approaches. It can be an inspiration for German retailers to simplify the shopping process, making it as convenient and pleasant as possible for customers. As long as customers prefer cash payments, German retailers still have to offer this way of payment and therefore need to consider solutions that help them optimise payment and cash management processes.
Read our recent white paper "Handling Cash – hidden cash and automated solutions” or contact your local Glory sales representative, or email email@example.com, to discuss how our solutions help optimize and accelerate the cash management processes within your store.