The Roadblock to Automated Retail: Balancing Cost and Regulatory Risks

One of the biggest challenges of implementing new technology, such as “just walk out” systems, is getting people to adopt it as part of their daily routines. This requires companies to invest in cameras, back-end computing devices and weighted shelving, which can result in significant up-front costs. Even companies with deep pockets, like Amazon, may find it economically unfeasible to implement such technology in businesses with thin profit margins, such as grocery stores.

In addition to the financial challenges, there are also regulatory risks associated with these systems. For instance, there are concerns about the sale of tobacco and alcohol through these systems. Successful integration of these systems into daily life requires buy-in from government stakeholders at all levels. Small towns, in particular, may view these systems as replacements for human labor, creating additional challenges for companies seeking to implement them.

According to Arcaro, a more gradual approach to automating retail locations may be a more sustainable path forward. An existing ecosystem of automated checkouts and related technology has already shown progress in the industry, offering a less costly and smoother transition. Over time, barriers to entry for these technologies are likely to decrease, making them more accessible to businesses of all sizes.