Dollar General pilots scan & go tech
Dollar General has become the latest retailer and the first dollar store to introduce a scan & go app.
Being piloted at 10 Nashville-area stores and rolling out to 100 more in the second quarter, DG Go! enables shoppers to scan items as they shop and then use a self-checkout to pay. While saving shoppers time by allowing them to avoid waiting in a cashier-manned checkout line, the app also provides a running total of what shoppers have in their baskets.
DG Go! automatically applies digital coupons for shoppers and alerts them of savings on the items they have scanned. Said CEO Todd Vasos on the retailer’s first-quarter conference call, “All of this makes staying on budget easier.”
He added, “As we continue to develop this app, we intend to integrate more functionality to deliver an even more personalized shopping experience.”
The app complements other digital initiatives such as digital coupons and personalized marketing campaigns. Dollar General has more than 12 million subscriber accounts, and customers who more frequently engaged with its digital tools tend to check out with baskets about twice as large as the chain-wide average.
Said Mr. Vasos, “With nearly 75 percent of the U.S. population currently within five miles of a Dollar General, we have a unique opportunity to help shape our customers’ digital shopping behavior all while leveraging our nearly 15,000 brick and mortar stores to help them save time and money.”
So far this year, Kroger and Meijer both rolled out scan & go programs. Macy’s expanded its program and Urban Outfitter is testing the technology at its New York City flagship.
In May, Walmart discontinued its second test of the technology due to low adoption rates. Shoppers found it awkward to scan a large number of items, especially fresh products like fruit and vegetables.
For stores, reducing labor costs is seen as one benefit of scan & go, Further, a Progressive Grocer article notes that shoppers using in-store pickup are more likely to make add-on purchases for forgotten items with a scan & go option. The technology also enables real-time interaction with logged-in shoppers and insights into shoppers’ paths of purchase.
- Dollar General Corporation Reports First Quarter 2018 Financial Results; Reiterates Financial Guidance for Fiscal Year 2018 – Dollar General
- Dollar General Corporation (DG) CEO Todd Vasos on Q1 2018 Results – Earnings Call Transcript – Seeking Alpha
- 5 Ways Mobile Scan-and-Pay Benefits Grocers Beyond the Checkout Line – Progressive Grocer
- Dollar General Pilots Mobile Checkout App – Progressive Grocer
- Kroger Announces Divisions for Scan, Bag, Go Expansion – Kroger
- Meijer Announces Innovative New Technology To Improve Customer Experience – Meijer
- Urban Outfitters launches third-party marketplace, tests self-checkout – Marketing Dive
- Stance Takes the Store Experience to a New Level with Mobile Self-Checkout Powered by Moltin – Moltin/Stance/Business Wire
DISCUSSION QUESTIONS: Does scan & go checkout technology make sense for the Dollar General shopping experience? To what extent do you see scan & go tech being adopted across retail, and how will its use affect the customer experience?