Could self-checkout counters solve supermarkets' manpower woes?

Retailers could save as much as 25% for automating.

For the last 12 months, the government has been incentivising supermarkets for automation in order to increase productivity in the retail sector. Analysts are also upbeat about this shift, saying that a self-checkout method would finally alleviate longstanding wage inflation and manpower problems.

According to analysts from RHB, supermarkets have been jumping on the bandwagon, as a self-checkout system helps them achieve better margins and pass on cost savings to customers, as cashier wages account for more than a fourth of an operator's total operating expenses.

"All the major supermarket operators in Singapore – NTUC FairPrice, Cold Storage, Giant and Sheng Siong – now have self-checkout facilities, although not in all stores," RHB said.

RHB also said the work of one cashier is equivalent to that of 2.5 machines.

“Based on our observation, one full self-checkout machine can serve the equivalent of 40% of a cashier counter at the moment,” RHB said.

Meanwhile, not all supermarkets are using a similar self-checkout method. NTUC FairPrice and Giant use full systems while Sheng Siong uses a hybrid.

"NTUC FairPrice and Giant have full self-checkout systems, whereby the shopper scans, pays and packs their own items. The facility that allows shoppers to pay by cash was not available. Sheng Siong, on the other hand, still requires a cashier to scan and pack, and the shopper receives a coupon which indicates the price and self-checkout counter to pay at (via either cash or card). In all three stores, one assistant was in place to monitor and assist across the self-checkout machines," RHB said.