Aldi innovates with cashless payment technology

Aldi is trialing cashless payment technology in partnership with Grabango at one of its supermarkets in Aurora, near Chicago. The system, integrated without changing the layout of products on the shelves, allows customers to shop and pay either with their payment card or via the Grabango app at the pay station near the exit. Despite the technical challenges and the lessons learned from Amazon's failure with its cashierless stores, Aldi is taking the risk of testing this technology, underlining the need for a considered and adaptable approach in this constantly evolving field.

FACTS

• Aldi, Germany's leading hard-discounter, is exploring cashierless payment technology in collaboration with computer vision start-up Grabango.

• This initiative is being implemented in one of its stores in Aurora, near Chicago, without altering the layout of products on the shelves.

• The Grabango system enables Aldi to track every item without the need for customers to queue or scan.

• Customers can use ALDIgo for their usual purchases, without special carts at the entrance.

• At the check-out, they have the choice of paying with their payment card or the Grabango app, while still being able to use the traditional checkout if they wish.

CHALLENGES

• A concept inspired by its London concept store: Aldi has experimented with a similar concept there with its Aldi Shop&Go store, reflecting its desire to innovate in the area of customer experience.

• A trend towards automating payment processes in supermarkets: Aldi's initiative is part of a growing trend towards automating payment processes in supermarkets, illustrating its desire to adopt modern technologies, helping to eradicate queues.

• Operating costs deemed too high: however, high operating costs pose potential challenges to the viability and acceptance of this model in the supermarket sector, raising questions about its widespread adoption.

MARKET PERSPECTIVE

• Despite Amazon's unfortunate experience with its cashierless stores, Aldi decided to test this technology. However, the technical obstacles encountered and the lessons learned from Amazon's failure underline the importance of a thoughtful, adaptable approach to success in this constantly evolving sector.

• In the Aldi Shop&Go concept store, once customers leave the supermarket, their purchases are automatically charged according to their chosen payment method, with a receipt available in the app. The system, supplied by autonomous shopping platform provider AiFi, uses strategically placed cameras to identify the products customers have picked up, then billing them once they have finished shopping.

• Grabango entered the cashless payments space in 2016. This Californian start-up is already active in stores belonging to the Giant Eagle, 7-Eleven and Mapco Store banners.