Tesco share price: Blue-chip grocer trials checkout-free shopping

New method similar to Amazon Go store

Tesco share price: Blue-chip grocer trials checkout-free shopping

Tesco (LON:TSCO) is trialling a new checkout-free method of payment for its convenience stores, Reuters has reported. The new service, which allows customers to scan products on their mobile devices and then walk out with them, is similar to a service tested by US e-commerce giant Amazon.

Tesco’s share price has advanced in today’s session, having added 0.54 percent to 258.50p as of 09:45 BST. The shares are marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.82 percent higher at 7,677.85 points.

Tesco trials checkout-free service

Reuters reported last night that Britain’s biggest supermarket was testing a smartphone app at the Tesco Express convenience store located in the campus of its headquarters at Welwyn Garden City, north of London, which allows customers to scan products on their mobile devices and then walk out with them without going through a checkout.

“Using your mobile device you select some products, put them into your basket on your device and then just walk out of the store,” Steven Blair, Tesco’s convenience transformation director told reporters, as quoted by the newswire. “The feedback is very good on it but it’s super early.”

The new service is similar to Amazon Go, a grocery store opened by the US e-commerce giant in Seattle, which relies on cameras and sensors to track what shoppers remove from the shelves, and what they put back. Customers are then billed after leaving the store using credit cards on file.

Latest Kantar Worldpanel numbers

In a separate development, Kantar Worldpanel reported this week that UK grocery sales at Britain’s biggest grocer had grown 1.4 percent in the 12 weeks to June 17. The group’s overall market share, however,  decreased to 27.7 percent from 27.9 percent in the prior-year period.   

Today's news comes after Tesco scrapped its Brand Guarantee scheme which offered customers a price match on branded goods. 

As of 10:03 BST, Friday, 29 June, Tesco PLC share price is 166.03p.

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