Every store in my city that installed these systems reduced checkout staff by 75-90% (in the checkout lanes). Walmart, grocery stores, you name it. I bet if we pulled some stats we’d see a major drop in hours, which means a huge drop in insurance, taxes, HR overhead, etc, etc. No matter how much labor rates went up (they didn’t), those cost reductions are massive in comparison.
Just consider their software contracts - systems are often licensed/supported at rates determined by scale: transactions per minute, # of objects being stored, etc. If there’s an HR system that handles hours, scheduling, pay, etc, etc, they likely pay annually for a system scaled to employee count (it’s BS, but it’s a metric companies use). Drop your employees by 75%, and on support contract renewal you can drop to a lower tier support. Source: I’ve been responsible for doing just this - reducing footprint so we can reduce support contract costs. I’ve save my company somewhere between $70 and $90 mil on one system this way. Not for HR, but it doesn’t matter, this is often how support contracts are done in the enterprise world.
I have two grocery stores that had 6 lanes staffed at busy times. Since they installed self checkout, there are two… TWO checkout staff. That’s a 33% 66% reduction during rush hour. And for off hours they’d have 2, maybe 3. That’s now 1 or two. That’s 50% or 66% reduction, depending.
It’s not like grocery checkout attendants do much more than that - shelves are stocked by the vendors themselves, maintenance by others (Walmart is retail, so different).
I never see more than 2 or 3 checkout attendants these days, some stores have even removed the “extra” checkout lanes, so they couldn’t even bring people back in if they wanted to.
And let’s not get started on other retail chains, which can be even worse.
Lol, not by my observation.
Every store in my city that installed these systems reduced checkout staff by 75-90% (in the checkout lanes). Walmart, grocery stores, you name it. I bet if we pulled some stats we’d see a major drop in hours, which means a huge drop in insurance, taxes, HR overhead, etc, etc. No matter how much labor rates went up (they didn’t), those cost reductions are massive in comparison.
Just consider their software contracts - systems are often licensed/supported at rates determined by scale: transactions per minute, # of objects being stored, etc. If there’s an HR system that handles hours, scheduling, pay, etc, etc, they likely pay annually for a system scaled to employee count (it’s BS, but it’s a metric companies use). Drop your employees by 75%, and on support contract renewal you can drop to a lower tier support. Source: I’ve been responsible for doing just this - reducing footprint so we can reduce support contract costs. I’ve save my company somewhere between $70 and $90 mil on one system this way. Not for HR, but it doesn’t matter, this is often how support contracts are done in the enterprise world.
I have two grocery stores that had 6 lanes staffed at busy times. Since they installed self checkout, there are two… TWO checkout staff. That’s a
33%66% reduction during rush hour. And for off hours they’d have 2, maybe 3. That’s now 1 or two. That’s 50% or 66% reduction, depending.It’s not like grocery checkout attendants do much more than that - shelves are stocked by the vendors themselves, maintenance by others (Walmart is retail, so different).
I never see more than 2 or 3 checkout attendants these days, some stores have even removed the “extra” checkout lanes, so they couldn’t even bring people back in if they wanted to.
And let’s not get started on other retail chains, which can be even worse.