Aldi opens its first cashierless supermarket in London
The discount supermarket chain Aldi has opened its first supermarket without checkouts, where people can shop without scanning items. The company operates a trial store in Greenwich, London, which lets customers complete purchases and pay without going to a checkout.
Instead, shoppers can download the Aldi Shop&Go app, after which they will be automatically charged for their purchases when they leave the store. Aldi's new store follows similar steps taken by Tesco, Sainsbury's and Amazon.
The new supermarket will also let shoppers buy alcohol using facial age estimation technology to check whether they look older than 25.
People who cannot or do not want to use this system can verify their age with staff. A series of high-tech cameras will track shoppers as they shop and then bill them when they leave.
Giles Hurley, Aldi's managing director for the UK and Ireland, said he is "looking forward to customer reaction" to the new store, which he said uses "the latest retail technology".
“I can't wait to show shoppers our new Aldi Shop&Go store. We have been preparing for this day for several months, so it will be great to see how our customers react to the new technology. For us, such steps are always aimed at improving customer service, and the whole team is eager to be on hand and ready to help make the experience as smooth as ever”
Before launching the service, the company tested the format on employees. Aldi is the UK's fifth-largest supermarket chain, with more than 950 stores and around 38,000 employees.
Amazon inspired many after the self-service phenomenon appeared in Seattle, opening its first cashierless store in 2018. Sainsbury's, dubbed the "future of retail", later that year opened its own cashierless store, which let shoppers scan items with a smartphone, place them directly in their bags and pay by phone.
Meanwhile, Tesco has allowed customers, via the Tesco.com app, to pick up the products they need and leave the store at its High Holborn branch in London.
A combination of cameras and weight sensors determines what customers have bought, and they are then charged for the products directly through the supermarket's app when they leave.
Retail expert and NBK Retail founder Natalie Berg said cashierless sales "will only grow". "Retailers are competing to offer the most seamless in-store experience — in retail, 'no-touch' has become the new norm," she added.
According to Berg, Amazon was the main catalyst for this trend, and the coronavirus pandemic has indeed accelerated it. She said it is "interesting" that Aldi has adopted this approach, as many discount supermarkets tend to "shy away" from anything that "increases costs for the business".
Nevertheless, Berg suggested that Aldi may see a cashierless supermarket as a long-term opportunity to reduce labour costs.
“Retailers must strike a delicate balance between seamless and soulless. The danger of excessive automation is that stores can feel cold and dull”
Separately, Aldi welcomed its "best ever" Christmas after a surge in December sales. The discount supermarket said sales rose 0.4% compared with the same month last year, when grocery stores were subject to rules and restrictions affecting hospitality businesses.
In the run-up to Christmas, more than 43 million mince pies and 118 million Brussels sprouts were sold. Hurley said the supermarket is committed to offering shoppers the lowest food prices throughout 2022 amid concerns over rising cost of living.
“In our view, the main priority for most families this year will be managing the household budget amid rising cost of living”
Hurley said on the day the store opened: "Today is the culmination of many months of work, not least from the team here in Greenwich, and I am looking forward to seeing how customers react to our trial. This store uses the latest retail technology, offering shoppers award-winning Aldi products at unbeatable prices in a new and innovative way. The team is delighted that customers are coming in and getting to know Aldi Shop&Go."
Aldi supermarkets have won many awards in recent years. In particular, in 2021 Aldi was named the cheapest supermarket in the UK. The company offers quality products at the lowest prices. In addition, readers of Good Housekeeping (the American women's magazine) have named Aldi their favourite supermarket and favourite wine retailer for the third year in a row.
