Monday, November 2, 2009

THE RETAIL MODEL IS BROKEN


Frankly, I don't understand the retail model. This occurred to me as I was in line at the grocery store the other day. I was standing in a long line with about $200 worth of groceries in my cart, meanwhile, someone else with only ice cream and kitty litter was quickly breezing through the 10 items or less register. WTF?

Those 2 items, ice cream and kitty litter, could not have cost more that $25 total. Here I am with more groceries and more money spent in store, and I'm being penalized by having to spend more time by spending MORE money? What kind of f-ed up business treats their lower paying customers better than their higher paying customers?

Here's how the grocery/WalMart/Home Depot/Target stores of the future should work: All stores need to have RFID tags (radio tags) embedded in all their items. I place all my groceries/items inside my cart. Like the Whole Foods in Manhattan, there are 2 lines, the 10 items or less line, where there is only 1 line for ALL the 10 items or less customers and a second faster moving line with triple the number of registers for more customers with more than 10 items. The larger number of items line, further breaks up into 3 lines where they are separated out, the cart moves into a standing line, and very quickly, the RFID tagged items are checked out instantly by a cart scanner, a credit card pays for it, and then there is a separate bagging area if necessary. Here the faster moving line is the lines for customers with more items/groceries.

From an incentive point of view, I would be encouraged at any store to spend more money, if I thought I would be spending less of my time in a line. As a high paying customer, I want to be rewarded for more spending, not penalized for it.

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