Self-Checkout Drops Sales of Impulse Items by More Than 45 Percent, Says New Study from IHL Consulting Group.

FRANKLIN, Tenn. -- The growth of self-checkout lanes is having a dramatic impact on the sales of impulse items among consumers, according to a new study from IHL Consulting Group. Consumers in the study said that they purchase impulse items such as gum/mints, chocolates and candies, chips or salty snacks, soda/water, and magazines at a frequency 45.4 percent less often when they use self-checkout than when they use a staffed checkout lane.

What's more, the impact is greater for women (-50.0 percent) versus a drop of 27.9 percent for men in the study.

"Retailers are being forced to re-think their merchandising at the front end as they deploy self-checkout systems," Buzek said. "The impulse displays have not caught up to this new technology. By definition these are impulse items -- thus they must engage the senses. Retailers such as Meijer and Kroger have adjusted by offering items such as rotisserie chickens and fresh baked breads to rely more on the sense of smell to drive sales rather than simply visuals when trapped in a staffed lane."

"Manufacturers such as Hershey's, Wrigley's or Pepsico need to adapt display technologies to leverage these new self-checkout lanes or face a drop in sales," Buzek said.

In the market study, 2006 North American Self-Checkout Systems, IHL examines the consumer acceptance of self-checkout technologies, what consumers like and dislike about the systems, and what impact they have on their shopping behavior.

Some additional key findings of the study include the following:

--In 2005, consumers spent over $110.9 billion on self-checkout transactions at retailers, up 35 percent, year to year.

--The average number of items in a self-checkout transaction is 6.7, and the average self-checkout transaction is $32.85.

--Nearly one-fifth (18 percent) of self-checkout users use it "all the time" when it is available but 29 percent use it only when there is a line at the other lanes. This means that if there's no line at a cashiered lane, they will choose to use a cashier rather than self-checkout.

--Fifty-five percent (55 percent) of respondents indicated that their greatest dislike about self-checkout involves transactions that are halted midstream for employee intervention. According to the consumers in our survey, one in every three self-checkout purchases requires intervention from an employee.

The full results are available for purchase at http://www.ihlservices.com.

IHL Consulting Group is a global research and advisory firm headquartered in Franklin, Tenn., that provides market analysis and business consulting services for retailers and information technology companies that focus on the retail industry. For more information, see www.ihlservices.com, call 615-591-2955 or send e-mail to [e-mail].

For press contacts and interviews, contact Roy Miller at 972-717-3500 x235, or via e-mail at [e-mail].