Retailwire: Checkout Time Limit around Four Minutes
By Tom Ryan, managing editor, Retailwire

[Editor's Note: Through a special arrangement, here is an excerpt from one of RetailWire's online discussions, along with the results from RetailWire.com's instant poll. US-based RetailWire.com presents the latest industry news and issues with key insights from a "BrainTrust" of retail industry experts.]

A survey from M/A/R/C Research found that four out of five shoppers are satisfied with wait times at stores in most cases. But it also found that 10 per cent were exasperated enough to leave a checkout line if the wait becomes too lengthy.

The online survey of 13,000 customers conducted in April found that customers are satisfied (79 per cent extremely/very satisfied) with an average wait time of about four minutes or less. The only exception is for club stores, where an average wait time slightly over four minutes was deemed still acceptable by those surveyed. After four minutes, the satisfaction levels drop considerably across seven other channels: grocery, consumer electronics, department, drug, home improvement, mass merchandisers, and office supply stores.

Among these channels, satisfaction levels are lowest for club stores and mass merchandisers because their wait times are well above the four-minute threshold. Among retailers, Lowe's, Publix, Best Buy, Target, Longs Drugs, Staples, B.J.'s Wholesale Club, and Kohl's received the highest satisfaction ratings in their respective categories for the checkout times.

According to the study, 43 per cent of consumers said long lines would affect their decision to shop a particular retailer in the future. Out of those consumers:

• 21 per cent said they would avoid the store if they knew the checkout lines would be long at the time;
• 19 per cent said they would only go to the store to pick up specific items they couldn't find at other stores;
• Three per cent said they would stop going to the store all together.

M/A/R/C Research said checkout time plays a key role in conversion rate, which averaged 75 per cent across channels for April 2008.

"Retailers really have to focus on keeping their wait times under 4 minutes with the negative impact of even one minute more," said Tony Amador, senior vice president at M/A/R/C Research, in a press release.

The overall results were similar to a M/A/R/C Research survey conducted in April 2007.

 Discussion questions: Have checkout times become an even more important component of the shopping experience? Are retailers generally putting enough emphasis behind reducing checkout times? What are some of the best strategies to do so?

• How Do Your Customers Respond To Long Wait Times? Many Leave Empty Handed! (Press Release) - M/A/R/C Research

• MEASURE - A Measurement of the Retail Experience (Survey) - M/A/R/C Research

FINANCIALS:
[NYSE:LOW]

Comments... Send in Yours!

That's why I like the self-scan options always available in Great A&P supermarkets.
I can check out quickly by checking myself out.

And I always get a friendly ‘Welcome’ greeting from Ann Page. Who can beat that?
'weo'

Starbucks was the first to realise that wait times equal lost revenue. Hence, their seeming one-on-every-corner approach. Since the economy has illuminated not all of their locations are profitable, they will have to scale back without raising customers' wait times.

Now that a four-minute wait has been deemed long enough, will retail management have the foresight to increase staff to ensure it doesn't happen? Doubtful, but many will push for more self-service – which could actually increase the wait time with people unfamiliar with the technology.

Bob Phibbs, president/CEO, The Retail Doctor & Associates

Checkout times have always been a very important element of the shopping experience, and will continue to be! This is the last impact of the experience you offer to the customer, and making it as convenient and pleasant as possible helps to build shopper loyalty. Unfortunately, too many retailers miss this opportunity, and the customer leaves with a less-than-satisfying last impression of their shopping trip.

What can you do to enhance the checkout of the shopper's trip? Retailtainment is one way to do so. How about overhead TVs that show CNN latest news flashes and soundbites? How about front-end music that is directed only to checkout lines? What about store managers walking the checkout lines to thank shoppers for their patronage? How about revamping the checkout areas to be less cluttered with impulse stuff? Maybe offering samples to shoppers in the checkout on things like hot cocoa on a cold day, or something refreshing if it is hot outside. Focus on making this last 20 feet in the store as pleasant as possible, so your final impression with the shopper is as positive as you can make it.

Dan Nelson, CEO, Leadership Resources

Interestingly enough, self-checkout systems may play a small role in reducing impatience. After all, consumers often have the choice of going to a shorter line if they want to scan and bag themselves. (It helps to get a kid to eat their green beans if a plate of overcooked brussel sprouts is lurking nearby.)

To address the main question, there's another balancing act involved here. The faster cashiers are pushed to move, the easier it is to get fraud past them. So, there is a strong loss-prevention element to also be considered.

In Europe, many chains are trying to split the payment from the scan and bag segments of the checkout process, potentially accelerating the entire process. Fujitsu's rollout last week of their U-Scan system is adopting a similar tactic.

This gets us into a philosophical question. Will that approach truly be faster or will it simply feel faster? I typically swipe my card when the final groceries are being scanned, during the bagging process, theoretically eliminating any significant time savings from splitting the process.

Evan Schuman, editor, StorefrontBacktalk.com