Sam's Club Revamps Shopping Experience with AI-led Checkout Verification
AI-Integrated Receipt Verification Rolled Out Across All Sam's Club Outlets
Hey there! Sam's Club announced on Tuesday its plan to roll out an AI and computer vision technology to verify customers have paid for their groceries, eliminating the need for human checkout loss at the exit. This digital verification technology is already being tested at 10 stores and is expected to be available at nearly 600 locations by the end of this year.
Sam's Club debuted this innovation at CES in Las Vegas, making it the first retailer to employ digital receipt verification technology at scale. This move adds to the club's Scan-and-Go feature, which allows customers to quicken their shopping spree by scanning and paying for their purchases via the app without standing in line.
Sam's Club stated that this AI-powered receipt verification is another way to enhance the shopping experience. By automating the check-out process, it frees up time for store associates to attend to customers' needs. Waiting in line for a receipt check is a frequent gripe among customers, and incorporating digital technology is one solution to improve convenience.
"This is Sam's Club at its finest, focusing on feedback from members, prioritizing their needs above all, and employing digital advancements to provide an unparalleled member experience," said Sam's Club CEO Chris Nicholas. "We are constantly on the lookout for ways to enhance the shopping experience for our members, and we will continue to prioritize using technology to provide a distinctive and delightful experience."
The AI checkout tech isn't the only innovation Sam's Club and Walmart are embracing. They've also introduced a generative AI search feature for iOS-using customers who access the Walmart app. By using generative AI technology, customers can search for products based on use cases, with results spanning across multiple merchandise categories. The system can also take into account location, search history, and other relevant factors to offer more precise search results.
Moreover, the company's AI-driven InHome Replenishment service, a new perk of InHome delivery, is also being introduced. AI predicts when shoppers need to replenish certain items, adding those items to their digital cart automatically using a personalized algorithm. Customers can still manage their orders by adding items or skipping products that aren't required. InHome delivery is a premium option for Walmart+ members.
Walmart has also indicated plans to bring drone delivery to about 1.8 million additional houses in the Dallas-Fort Worth region, expanding its footprint to be the largest drone delivery area among U.S. retailers. Drone companies Wing and Zipline will handle the deliveries.
"The response to drone delivery from Walmart customers has been phenomenal, proving that demand for drone delivery is real," said Wing CEO Adam Woodworth. "Our partnership has shown that this innovative delivery option is a hit, and we're thrilled to be rolling it out to millions of Texans."
Now, let's dive a little deeper into Sam's Club's AI-based digital receipt verification system:
- App-based scanning: Members scan items using the Sam's Club mobile app as they shop, building a digital cart.
- In-app payment: Shoppers complete their purchases through the app, generating a digital receipt.
- AI exit verification: Cameras and sensors scan carts from multiple angles using computer vision to verify items against the digital receipt, cross-checking the entire cart contents.
Compared to traditional checkout, AI verification offers a multitude of benefits:
| Factor | AI Verification | Traditional Checkout ||------------|----------------------|---------------------------|| Speed | Exit completed in seconds via automated scan | Queues for cashiers/self-checkout || Labor | Reduces need for cashiers and receipt checkers | Requires staff for checkout and verification || Member Experience | Contactless, seamless exit process | Manual receipt checks cause bottlenecks || Accuracy | AI cross-checasts entire cart contents | Human error possible in manual checks || Data Utilization | Purchase patterns inform inventory/merchandising | Limited actionable data from physical receipts |
The system benefits Sam's Club's membership model, with its subscription-based accountability reducing theft concerns compared to traditional retailers. Plus, members report an increase in shopping frequency (3x for app users) thanks to streamlined experiences, while the company gains operational efficiency through reduced staffing needs.
- Sam's Club will implement artificial-intelligence (AI) and computer vision technology to verify grocery payments, potentially eliminating the need for manual checkout lines.
- The company is also testing a generative AI search feature for iOS users on the Walmart app, enabling product searches based on use cases.
- Sam's Club's AI-driven InHome Replenishment service uses personalized algorithms to predict and automatically add needed items to digital carts for InHome delivery.
- Walmart aims to expand drone delivery to approximately 1.8 million houses in the Dallas-Fort Worth region, partnering with drone companies Wing and Zipline for the deliveries.
- Sam's Club's AI-based digital receipt verification system uses app-based scanning, in-app payment, and AI exit verification to optimize speed, labor, member experience, accuracy, and data utilization.
- By automating the checkout process, Sam's Club frees up employees to attend to customers' needs, potentially improving overall customer satisfaction.
- The implementation of AI technologies such as drone delivery, generative AI search, and AI-led checkout verification further solidifies Walmart's and Sam's Club's positions as technology industry leaders in finance, retail, and AI-artificial intelligence.
