More Unmanned Stores and Increased Self-Service: Labor Shortages and AI are driving a New Era in the Retail and catering industry
AI, robots, and digital solutions have revolutionized the way we work, shop, and experience the world. This is also true in the retail and catering industries, where the number of self-checkout stations, ordering screens, QR codes, apps, and unmanned stores is rapidly increasing. Helle Nielsen Ziersen, Head of EDC International at Poul Erik Bech, explains:
”Self-service solutions have become a global trend and are gradually gaining ground in Denmark. According to our international partner, JLL, the number of self-checkout stations in grocery stores is expected to exceed 2 million worldwide by 2029. At the same time, we are also seeing an increasing number of unmanned stores, where cameras and sensors track the items customers pick from the shelves, allowing them to pay digitally via their phones. In 2016, the American Amazon Go became the first unmanned store, but it is particularly Asia that has embraced the concept, with several 7-Eleven stores now operating without personal service.”
”In the catering industry, particularly in the fast-food segment, digital self-ordering screens have become the standard, while QR codes and tablets are also gaining popularity in several cafés. This shift is well-founded, as international studies show that customers order 15-30% more via screens than at a physical counter, while the ordering process is, of course, optimized.”
Four factors drive the development
According to Helle Nielsen Ziersen and JLL, the development is driven by four key factors: “The competition for labor is fierce, and the retail and catering industries are struggling to recruit and retain employees. This is driving up wages, making automated solutions an attractive way to reduce fixed costs. At the same time, we have seen significant technological advances, particularly in AI, which stores are trying to implement to optimize the customer journey. Unmanned stores and self-ordering screens also help avoid long queues, providing the opportunity to operate 24/7. This meets new consumer patterns in a time characterized by busyness and time scarcity, where flexibility is highly valued.”
More Danish examples
The concept has also been adopted in Denmark. Frank Heskjær, Head of Retail at EDC Poul Erik Bech in Aarhus, explains: “Self-checkout stations and SCAN-and-go have become standard fixtures in large grocery stores here. Since 2022, we have also seen more unmanned stores, which have particularly gained traction in smaller communities, where attracting employees is challenging and the customer base is smaller. This is the case, for example, in holiday home areas, where small grocery stores can be found both unmanned and open 24/7.”
”Now, the largest retail corporations are setting their sights on larger cities, and in October 2024, Salling Group opened their first 24/7 unmanned store, Føtex go, in central Aarhus. Reitan Convenience is also developing the concept, while several of the larger secondhand stores are working with so-called “trust stores” – including in Bruuns Galleri in Aarhus. Looking beyond the grocery segment, Teeshoppen is one of the most well-known brands with unmanned stores, and there is also the bakery Organic Market, Denmark’s first unmanned bakery, which now has four locations. The concept is particularly popular among younger generations, while the older generation is more hesitant, as they need to provide personal information to check into the store.”
The human element is unreplaceable
The new reality in the retail and catering industries does not mean that we humans can be fully replaced, emphasizes Helle Nielsen Ziersen:
”The human element is what distinguishes physical stores from online shopping, and according to JLL’s research, 67% of consumers still prefer to shop and make purchases in person. Therefore, stores should be cautious with full automation, as they risk diminishing the customer experience and making it more impersonal. JLL’s data also shows that 75% of consumers in the food and beverage industry consider human interaction a critical factor for a good customer experience. Our expectation is that, moving forward, we will see the role of employees shift from more traditional tasks such as inventory management, ordering, and payment to more value-creating functions like inspiration, entertainment, and advice.”