3. Let’s Talk
Queuing Theory
Danish theory developed in the
early 1900s that states that one
giant check-out line would
theoretically offer the least
amount of wait time per
customer.
GroceryGuru
Why not abolish the line all
together? Scan and go
technology identified to cause
disruption in the grocery
industry.
Average Shopping Trip
The average shopping trip takes
41 minutes. Of the 41 minutes,
7-10 minutes is spent in a
checkout line or 2 minutes at
self-checkout.
Annual American Spending
Americans are spending $638
billion in supermarket sales. 65%
of which is spent at a traditional
grocery store.
3
4. 839,810 Cashiers
U.S. Grocery Industry Employs
$16,317,508,300
Grocery Cashier Annual Average Salary
$19,430 Annually
U.S. Bureau of Labor Statistics, Occupational Employment Statistics
4
Grand Total of U.S. Cashier Salaries Annually
5. Financial Benefits
5
Development
Sales, Marketing,
and Advertising
Hosting and Other
Services
Users
1% Total Purchase
Transaction Fee
Year TwoYear One Year Three
-$72,800 $0 $0
-$25,000
-$1,400
351,000
$31,575,960
$31,476,760
-$25,000 -$25,000
-$1,500 -$1,800
460,000 526,000
$41,381,600
$41,355,100
$47,363,940
$47,337,140
13,500 Grocery Shop a Week in
America
$173 Weekly Average Shopping
Trip
9. 9
GroceryGuru Application
Here are the various
menus after logging-in.
Customers can view their
information or change their
store and payment
methods.
10. 10
GroceryGuru Application
The customer then begins to
scan items and add them to
their cart. The app uses their
preferred payment method
automatically then provides a
QR code to scan at a register
or at self-checkout.
11. Why We Are Different
GroceryGuru
Scan-and-Go application is
universal.
Premium version which costs $1
a month. Provides detailed
analysis of your purchases.
Customer loyalty program
where customer receives
rewards based on how much is
purchased.
11
Competitors
Scan-and-Go applications are
store specific, such as Walmart
and Sams Club.
Amazon used Scan-and-Go for
their Amazon Go store debut,
Amazon currently only has one
store located in Seattle.
Other applications have similar
programs where shoppers scan
their items for rewards, such as
Fetch. There is no checkout
process in place.
12. Desired Outcomes
12
Reduce time spent in
checkout lines
Efficiency
Increase customer
satisfaction
Reduce grocery store
expenses
2
3
4
1 Reduce by 7 minutes
Scan-and-Go
technology
Reduce by $400,000
annually in Cashier
salaries
Remains efficient
regardless of purchase
size
19. Process Model
19
InventoryDatabaseMobileApplicationProductsCustomer
Customer enters
grocery store
Customer sees
a grocery
product
Does the customer want
to add the grocery
product to their cart?
Scans barcode from
the grocery product
into the application
Grocery product is
accounted for within
the individual stores
database
Customer decides if
they are done
shopping
Customer selects
their payment
method and
checkout is
complete
http://www.delish.com/food/news/a41500/grocery-store-wait-times/
Case Study: Using 10,000 customers in a grocery store with 10 cashiers and 3 minutes of wait time. The queuing theory model shows that a single-line model means shorter waits than multiple check-out lines.
Average Shopping Trip: 2.2 days a year spent in a grocery store according to the Time Use Institute
Annual American Spending: Around $415 billion spent at a traditional grocery store
If you multiple that by 1.5 trips per week on average that’s over 53 hours per year you’re spending in the grocery store.
