From Human Cashiers to Machine: An Empirical Analysis of Self-Service Technologies in the Retail Stores

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2025-01-07

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5760

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Abstract

Using detailed data from a leading retailer in Korea, where some stores adopted Self-Service Technologies (SSTs) in their check-out, this study examines the effect of SSTs on sales dynamics, labor productivity, and customer segmentation. Based on the difference-in-differences approach, we find that the SST adoption reduces the number of transactions at a traditional POS counter while increasing a basket value, indicating a trend towards fewer but larger transactions at a POS counter. Naturally, we find fewer cashiers at POS counters after the SST adoption, but their workload has also decreased, leading to lower labor productivity. From a customer segmentation standpoint, we find that the number of unregistered customers decreased after the SST adoption. Having a more identified customer base is essential to retailers as they can use more focused marketing strategies and optimize their operations. We further examine the heterogeneity effect of SST on different customer types and operational periods.

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Data Analytics, Strategic Leadership, and Value Creation, customer segmentation, labor productivity, retails, sales dynamics, self-service technologies

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10

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Proceedings of the 58th Hawaii International Conference on System Sciences

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Attribution-NonCommercial-NoDerivatives 4.0 International

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