Will COVID-19 change consumer buying habits long term?

Editor’s Note: This is part one in a two-part series on COVID-19’s impact on unattended retail.

One would be hard pressed to cite many positive aspects of the coronavirus pandemic that has “closed down” much of the global economy. But leave it to the progressive thinking individuals in the interactive kiosk industry to find a silver lining.

While everyone is anxious for the day when a proven vaccine allows us to return to our daily routines, will consumer buying habits really be the same as pre-COVID-19?

In the short term, research indicates consumers are gravitating to self-checkout solutions.

Habits already changing

Let’s start with the basics: everyone has to eat. A recent consumer survey of U.S. grocery shoppers by Shekel Brainweigh, a provider of weighing technologies and autonomous micro market solutions, found that more than two-thirds of consumers are now using self-checkout or frictionless micro markets to pay for groceries compared to less than one-third who are ordering groceries online.

According to online surveys conducted in March and April by Engine Insights, online shopping has increased 74% since March 13 in response to the coronavirus. The percentage of consumers increasing their online shopping March 13-15 was 31%, March 27-29 – 50%, April 3-5 – 49%, and April 10-12 – 64%. 

“Getting back to normal routines will take time and require different habits and retail solutions,” Udi Wiesner, general manager of the Shekel Brainweigh retail innovation division, said in a prepared statement. “Consumers will look for touchless shopping experiences whenever possible while keeping social distancing rules, especially if another wave of pandemic occurs. We expect significant growth of unattended autonomous micro markets in convenient stores format in urban areas and public facilities.”

“Basically, the no-social contact rule is driving customers to utilize self-checkout, self-service and alternative methods over dealing with an attendant, when they typically might prefer an attendant,” Laura Milller, a kiosk industry veteran who currently serves as corporate business development manager at Vispero, an assistive technology provider for the visually impaired, told Kiosk Marketplace. “Kiosk deployers will benefit from people who have no choice but to become more comfortable with alternative methods.”

Service and hospitality forced to change

Some observers believe the coronavirus has forced service and hospitality businesses to invest in unattended retail technologies that may prove popular with consumers even after the “stay-at-home” mandates are lifted.

“The current reality is service and hospitality businesses are laying off thousands if not millions of employees,” said Paresh Patel, founder of PayRange, a payment technology provider for unattended retail. “If those businesses replace those workers with self-service automation such as kiosks, then when the crisis is over, the businesses will be less inclined to hire the same employees back which were replaced by automation. This in turn will effectively ‘force’ the consumers to adopt self-service in more ways than ever, post-crisis.”

“Certainly, there will be behavioral changes among consumers,” agreed Chris Corsbie, senior director of marketing and communications at Elatec, a provider of radio frequency identification solutions. “The few out there who may have resisted online shopping have surely come around to it now. And the use of personal protective equipment by those in foodservice, health care and other high-contact industries will increase to match consumers’ understandably heightened sensitivities.”

Some see the COVID-19 outbreak hastening a move to self-service that was already taking place.

“I think the consumer habits that have already begun to change will more quickly become the standard due to COVID-19,” said Sam Zietz, founder and CEO of TouchSuite, a provider of POS and financial technology. “Even without government mandates, consumers’ desire to avoid contagious illness is speeding up the adoption of kiosks. Providing consumers with kiosk and self-service options is one of the only avenues left allowing restaurants to remain in service.”

“We do believe that this will change consumer habits for an extended period of time,” agreed Yale Goldberg, vice president of business development at Cali Group, a technology solutions provider that owns Miso Robotics, a robotics maker, and a chain of 50 fast casual burger joints called Caliburger. “We have already seen how self-service has accelerated as a result of the coronavirus.

Customer screening needed

The coronavirus has also made retailers more cognizant of the need to screen customers for potential health risks.

Goldberg said Cali Group is working on an access control device that includes a thermal camera to take the temperature of visitors. The device can automatically unlock a retailer’s door for those that do not have a high temperature and alert a building manager for those that do.

Elatec’s Crosbie also believes the increase in restaurant takeout and no-contact delivery as a result of the coronavirus will accelerate the need for pickup lockers in retail, office and residential settings.

“Whether real or imagined, the idea of accessing product without human interaction will seem more hygienic and therefore safe,” Corsbie said.

“So much is changing so quickly, and on such a broad scale, that it’s hard to imagine anything less than long-term wide scale changes in consumer behavior,” said Juan Perez, CEO of ADUSA, a kiosk software provider. 

While unattended retail will likely become more popular as a result of the coronavirus, won’t consumers also be reluctant to use touchscreens and credit cards? Part two of this two-part series will explore how retailers will address this issue.

For an update on how the coronavirus is affecting the kiosk industry, click here. Please check here for more news and insight on how COVID-19 is impacting the retail industry.