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 THE STAT 26Percentage of wireless customers who use their cell phones to take picturesMore Vitals
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AUGUST 31, 2004
How Retailers Are Turning to Tech [Page 2 of 2] VEGGIES' CLOSE-UP. Other clever technologies will boost retailers' profit margins by encouraging customers to take on some of the work typically done by store workers. IBM Research (IBM ) has developed a special scale allowing shoppers to weigh their own produce and get a price printout, so they can move through checkout faster. Using five factors, including the products' color, size, and texture, the scale's camera is so precise it can differentiate between two different kinds of apples, which is something most produce managers struggle with. (That's why in many stores different kinds of apples are typically sold at the same price.) With this scale, retailers will be able to charge more for some kinds of produce. Better yet, the scale's software -- the same one NASA uses to enhance space photos -- can even identify fruit and veggies through plastic grocery bags. Self-checkouts, representing about 5% of U.S. cashier lines today, reduce staffing needs as well. Typically, such setups allow one worker to oversee four lines instead of one, says Mendelsohn. As these are rolled out en masse in the next two years, they'll either reduce the total number of people hired or free workers to greet shoppers or demonstrate new products. BUYING WITH A FINGERPRINT. Another area where technology can play a pivotal role is by reducing fraud and identity theft, which costs consumers billions annually. San Francisco startup Pay By Touch has developed a fingerprint-based electronic wallet already used at several Roundy's and Piggly Wiggly grocery stores. To sign up, customers scan a finger and swipe their debit and credit cards at an in-store kiosk. The next time they come to a cashier, their fingerprint reading will open a customized screen, with a list of their payment options. "We guarantee that no one else can be interpreted as being you," says Craig Ramsey, Pay By Touch's CEO. This technology also reduces transaction time by 34%, allowing stores to handle more customers with fewer employees, he says. However, the bulk of innovation will happen behind the scenes. Cuesol, for example, has developed a device the size of a cell phone that attaches to the front of shopping carts, pinpointing their exact location within a store. Then the carts all show up on a computerized map. If a manager sees scores of consumers heading to the pharmacy, staff can quickly be sent there to reduce lines. Cuesol will begin testing the system at select Stop & Shop stores in three months. TECH LIMITS. The jobs of the rank-and-file will get easier, too. Software giant Microsoft (MSFT ) is developing a location-based information database that workers can use to get answers to customer questions. If a shopper asks a salesperson in the TV section how to get cable service, the database might retrieve a local provider's number. But the same question, when asked by someone in an area selling various cables and hardware components, might generate an answer like "coaxial cable." "This will enable employees to get up to speed and become educated quicker," says Brian Scott, general manager for the retail and hospitality industry solutions group at Microsoft. Of course, high tech won't solve everything. Much can be accomplished by simply making stores less cluttered and their layout more immersive -- like the cosmetics sections in department stores, says Tom Gibbs, Intel's worldwide director of industry strategy. And it's important to keep in mind that "people can only handle so much change," Gibbs says. Still, retail technology is about to take a giant leap. And it promises to be a profound -- and profitable -- one for both retailers and consumers.
 By Olga Kharif in Portland, Ore.
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