Automation has become a focus of the retail industry over the last decade, but the emergence of new innovative solutions such as robots, advanced IP cameras, artificial intelligence (AI) and various other technologies are now helping propel the retail industry forward. Many automated technologies for retail, such as kiosks and self-checkout units, are present in stores today. In fact, the global retail automation market was valued at USD 12.45 billion in 2019 and is expected to reach USD 24.6 billion by 2025 at a CAGR of 11.2% over the forecasted period from 2020 to 2025 per Mordor Intelligence.

While this booming market is shaping the future of retail, certain technologies are seeing more success than others during testing. For example, Walmart recently ended its partnership with Bossa Nova Robotics, which provided autonomous bots that roamed aisles and scanned shelves. These robots were deployed in 350 Walmart superstores a year ago and as recently as January, Walmart announced its plans to put 1,000 of these bots in its stores across the U.S. However, Walmart reportedly stated that the robots weren’t cost-effective or more efficient than associates. The company also expressed concern about consumers’ reactions to shopping alongside robots. Autonomous bots aside, Walmart continues to experiment with innovative ideas by announcing its partnership with Cruise to pilot all-electric self-driving deliveries powered by 100% renewable energy.

Other supermarkets like Ocado, a British supermarket claiming to be the world’s largest online-only grocery retailer, are all in on robots. Ocado just announced their agreement to purchase a pair of robot makers. Ocado wants to expand the scope of automatable fulfillment operations. They are targeting a relatively unsolved robotics task—picking and packing—which requires even more dexterity and perception capabilities with groceries.

As highlighted earlier, retail automation provides opportunities for efficiencies and cost savings, but the deployment of those technologies must make sense.

For Walmart, the autonomous self-scanning robots weren’t cost effective and store associates were the more efficient alternative. Per McKinsey & Company, “Adding technology, by itself, is not enough. Retailers must also rethink their operating models across stores, distribution centers, and headquarters. Automation creates organizations with far fewer layers—each employee is responsible for a more diverse set of responsibilities.” On a store-by-store level, the strategic deployment of both the automation technology and the employees is crucial.

One area that has experienced repeated success with automation is the checkout process.

Throughout the years we have seen stores transform with adoption of self-check outs (SCO), kiosks and cash automation technologies. Through integration of this technology, retailers can redeploy associates to greater value-add areas such as helping customers, monitor and fill inventories as well as many other tasks. In addition to staffing deployment, these checkout automation technologies can have many other benefits for retailers. Additional benefits include boosting profits, reducing shrinkage and friction at checkout and protection of employees and customers.

Globally, retail automation is inevitable and is here to stay. Retailers will continue to see automation grow in terms of innovations and size. But most importantly, the way these technologies are strategically deployed and how they are utilized to improve stores is still undetermined. Amid these trying times and beyond, I guarantee we will continue to see major retailers investing in and pushing the limits on automation technologies in-stores no matter how crazy they seem.