Tesco’s checkout-free stores are a successful extension of its core purpose

New Ideas in MarketingEssential news for marketers, summarised by YouGov
November 03, 2021, 2:50 PM GMT+0

While the checkout-free Amazon Go stores fell short of amassing wide popularity, legacy bricks and mortar retailer, Tesco opened its checkout-free store in October to early success.

In-store visitors are generally “trained” to expect the checkout experience. As tedious and transactional as it is, Tesco decided to do away with checkout, in tune with its core purpose of “serving shoppers a little better every day.” However, Amazon’s core purpose is all about offering a customer-centric online shopping experience.

For a company that is now the largest online marketplace today, entering the more traditional space of physical retail is a significant mental leap for audiences. Tesco, on the other hand, already has a large group of loyal shoppers. Similarly, the retailer focuses on being employee-centric to be customer-centric.

By doing away with checkouts, Tesco has enabled its staff to use data to assist customers on the shop floor, drive loyalty and offer increased personalisation. Tesco could soon focus on collecting behavioural data, enhance its successful loyalty programme Clubcard and offer real-time rewards.

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