BUFFALO, N.Y. (WBEN) The country's attempt to go cashierless hit a speed bump this week when grocery chain Wegmans announced it is discontinuing the Scan App, a popular feature with shoppers.
It was introduced during the pandemic to allow consumers to scan their own groceries and check-out independently.
"Wegmans had the courage to close down the app because the losses were monumental," said retail analyst Burt Flickinger with Strategic Resource Group.
"For every one dollar recovered in retail theft, $33.15 is not recovered. Retail theft has been increasing 13% a year," added Flickinger.
It's not just Wegmans that has been offering customers a scan and go option.
Shoppers can find similar apps at Tops Markets, Walmart, BJ's Wholesale
stores and various drug store chains.
"Other stores will study Wegmans action," said Flickinger. "Tops is still using
an app with its co-partner Price Chopper. We expect to see chain drug stores, such as Walgreens and CVS, discontinuing the app as well, as retail theft is threatening the viability of stores."
As for Wegmans shoppers, the Scan App was a bonus. But the chain does not risk much by shutting down the App, in Flickinger's opinion.
"Some shoppers may shift to competitive stores. That said, Wegmans has a great grocery delivery and curbside pickup service, which has been working very well for them."
Flickinger puts some of the blame on states' shoplifting laws. "New York Governor Kathy Hochul inherited a policy from Governor Cuomo and the state legislature that up to $900 dollars can be stolen per day, per store with no consequences for the criminal. No arrest, no court appearance, no jail time. It's essentially a parking ticket." Nothing is going to change, he said, without action from governors, state attorney generals and district attorneys, who in his opinion, are encouraging crime.
Will Wegmans look for a more secure way to bring back the App? "Absolutely," said Flickinger. "Wegmans should be able to navigate a new app with better technology, led by Amazon's artificially enabled stores that use Just Walk Out technology, which lets shoppers to skip the checkout line."
The average transaction with the Amazon artificially enabled stores is 25 to 30 dollars. The average Wegmans transaction is in the hundreds.
"With more items in the shopping cart and more self scanning, it's a lot easier for the dishonest person to not pay Wegmans, than it is to not pay Amazon."
Flickinger is confident the chain will develop new scanning technology to improve and secure the shopping experience.
