Over the last few years, self-service checkouts have served society well and are a long-standing feature in pretty much everyone’s local Tesco or Sainsbury’s. However, only recently has the fashion world decided to get on board. Evie Rusman analyses the top fashion retailers trialling new payment methods in-store and online
Nowadays, minimal interaction between customers and store assistants dominates the payments sector. Therefore, it only seems evident that fashion retailers adopt this attitude when approaching checkout points.
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Nevertheless, self-service payment points are still a rarity when it comes to shopping on the high street, with the idea of ‘grab and go’ not quite commonplace when browsing for the latest fashion trends.
As an industry that relies heavily on customer assistance, it makes sense that the fashion world has not adapted to this technological change as quickly as others.
With that being said, Zara is one of the more recent retailers to launch a trial exploring self-service checkouts in-store. Throughout various stores across Europe customers can be seen with a confused look on their faces trying to work out how to remove security tags from their clothing.
The new checkouts can be quite fiddly to use and may leave some sceptical as to whether they are the best idea, especially, if the plan is to replace regular checkouts entirely.
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By GlobalDataEasing the customer experience
The idea behind self-service checkouts is that they make the customer’s life easier by helping them to avoid waiting in line for a lengthy amount of time.
Kirsty Morris, director of Barclaycard Payment Solutions, explains to EPI how this move by retail giants such as Zara is a step in the right direction when it comes to ensuring the customer remains happy.
She says: “UK consumers are increasingly demanding a fast and frictionless in-store shopping experience, starting from the moment they step through the door and continuing right up to making a payment at the till. Every point of customer frustration, from lengthy waits for fitting rooms to a lack of available staff and long checkout queues, can cost retailers dearly.
“Self-service payments checkouts, as we can see from their successful use in supermarkets, have the potential to benefit shoppers and brands alike by helping to ease some of these pain-points and boost in-store sales. It makes sense that fashion retailers such as Zara have been exploring how they can replicate the success of self-service checkouts for their own customers.”
Self-checkout trials
Earlier this year, British fashion and homeware retailer Matalan also began trialling self-service checkouts in its Southport and Wavetree Liverpool stores.
Speaking to EPI, Mike Jeans, retail director at Matalan, says: “We tested two types of tills and came to the conclusion that a hybrid till that could be used by both colleagues and customers worked best. We have now commenced the second phase of the trial, focusing on just the hybrid version in a further twelve stores. This second phase will run for about three months, as we aim to gather as much customer feedback as possible. We have tweaked the software slightly based on initial customer comments, but feedback in general shows that customers really love this option.
“Our goal for this trial is to offer the best customer experience we can. Our customers are already familiar with this type of technology and we have struck a great balance with a hybrid assisted-service till; allowing both convenience and speed at the checkout, as well as the added benefit of a colleague on hand to offer advice and assist when needed.”
Payments influencing retail
Payment processes are becoming more and more important when it comes to in-store and online purchases. As technology advances, customers expect their favourite retailers to utilise this technology in order to provide an easier, more accessible shopping experience.
Paul Hornby, director of e-commerce at Matalan, tells EPI: “Customers want an increasingly easier payment journey, which is leading to a proliferation of new payment methods being offered. The main focus being how brands can use technology to remove friction from the in store purchase process, trialling initiatives such as assisted checkout and using mobile phones to make payments.
“It was really interesting to see Amazon and Sainsbury’s introduce completely cashless stores recently and how minimising or removing the need for customers to interact with a till at all is something that may become common in the not too distant future.
“All of this applies to the online journey too. There is a real level of expectation there; customers want to pay how they want to – quickly, easily and with their preferred payment method. We know payment is becoming a deciding factor in where customers choose to shop and we will continue to be led by what our customers want, reviewing how we use technology to deliver that,” adds Hornby.
Hornby also says Matalan will consider introducing biometric payments in the future such as fingerprint scanning and facial recognition.
Buy now, pay later
Over the past few years, there has been a rise in the number of online retailers offering payment solutions that allow customers to pay in instalments.
Hornby adds that Matalan are looking into offering this type of solution in response to an increase in popularity.
Payment solutions giant Klarna is one of the most widely-known companies to offer a ‘buy now, pay later’ service. Its services have been adopted by some of the biggest online retailers including, ASOS, Topshop, Michael Kors and Schuh.
Luke Griffiths, UK MD of Klarna, tells EPI: “Payment options like ours enable a smooth and flexible buying experience for shoppers, which can be tailored to fit around their busy lives. This puts them in control over how and when they want to pay by making it easy for them to manage their cash-flow.
“Take Pay later (our most popular product). It bridges a clear gap between the online and offline shopping experience by giving consumers the flexibility to see and try on items before they commit to purchase — similar to how they would in-store. They then have up to 30 days to pay for their goods after they’ve been delivered, with no interest or fees, ever. If, on the other hand, the item isn’t what they expected, they can simply return it with no money leaving their hands. The merchant, however, is paid immediately and in full.
“At the end of the day, offering flexible and hassle-free payment methods is now a crucial step retailers must take to increase sales.”
Interaction between staff and customers
Griffiths highlights how the relationship between customers and staff has changed over the years and emphasises how retail teams must be equipped to deal with customer demands.
He says: “Consumers love choice, and the growth of online shopping means that we have an unprecedented number of options available to us. As attention is fragmented, retailers are having to work harder than ever to attract and retain customers, who demand a flawless experience both online and in-store.
“Part of this relies upon quality interactions between customers and staff — whether that’s human interaction in-store or intelligent support online. Teams need to be equipped with the right skills and knowledge to make every individual’s shopping journey as smooth and enjoyable as possible, from making product recommendations to sharing information about where to find items online.
“But there is so much more to it than that. Retailers should consider everything from smart and engaging marketing to personalised promotions and, of course, flexible payment options to maintain their share of wallet. The end goal is simple: to enhance the customer experience at every touchpoint and, in turn, secure their trust and loyalty — keeping them coming back for more.”
Future of retail payments
Convenience and ease are the main drivers when it comes to retail payments as in order for retailers to succeed financially, they must offer a service that keeps the customer satisfied.
Griffiths adds: “It’s an extremely exciting time for the payments industry because shopper expectations and purchasing habits are shifting significantly. But payments will always revolve around one thing: customer convenience.
“We expect that the retail payment solutions of the future will be based on ideas we are already familiar with — from apps and mobile payments to alternative, flexible payments like BNPL. Only by streamlining steps to purchase and providing multiple payment options will retailers be able to keep pace with the needs of the modern consumer.”
