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Autonomous Stores


The inexorable emergence of autonomous or unmanned stores represents an under appreciated thematic that holds considerable growth potential over the coming years.

The global market is expected to grow some ten-fold with a CAGR of 25% out to 2034, at which juncture revenues should comfortably eclipse $600 billion.

The catalysts behind this phenomenon are manifold, highlighting the following key dynamics:

  • Facilitating a faster, more seamless checkout experience.

  • A counterbalance to rising labour costs and shortages.

  • Taking advantage of favourable demographic trends. Younger cohorts evince a clear preference for a swift and “frictionless” transaction process, with recent polls illustrating over half of all Generation Z respondents opting for unmanned stores.

  • For the retailer, this can generate higher margins (due to the lower labour cost component), with zero downtime and longer operating hours. 

  • This in turn, can enable more efficient inventory control, leading to improved operating metrics (faster inventory turns, higher “in stock” levels, and optimal product mix offered), as well as significantly faster bill processing times.

  • Optimisation of in-store product placement through the utilization of digital “heat map” sensors that track and direct retail traffic behaviours.

There are several key components that comprise integral building blocks within a full end-to-end autonomous store system. Each represents a major product market in its own right, with several other non-retail verticals brought in to play. These include:

  • Point of Sale Terminals (POS)

  • Self-Checkout Kiosks

  • Smart Vending Machines

  • Delivery Point Containers

  • Smart Shelf Sensors

  • Wireless POS

  • Digital Contactless Payment Systems

  • Computer Vision Systems

  • Radio Frequency Identification (RFID) Systems

  • Machine Learning/Deep Learning

  • Natural Language Processing (NLP)

  • Sensor Fusion Networks

  • AI Internet of Things (IOT) Systems

  • Cloud Analytics

While autonomous stores have long been a feature of the Asian retail market landscape, North America is the largest geographical segment of the global market with an estimated 40% share. Whilst all regions are expected to report dramatic growth over the next decade, the fastest pace of expansion is anticipated to be in South America, the Middle East, Africa and Eastern Europe.

Contiguous vertical markets for autonomous systems include restaurants, hospitality and entertainment venues.

The autonomous store market is highly fragmented but public companies with significant product solution presence include:

  • NCR Voyix Corporation   (VYX:NYSE)

  • Diebold Nixdorf Incorporated   (DBD;NYSE)

  • Toshiba Tec Corporation   (6588:TSE)

Smaller “pure-play names include:

  • Posiflex Technology Inc.   (8114:TWSE)

  • Nayax Ltd   (NYAX:TASE)

  • ITAB Shop Concept AB   (ITAB:OM)

  • Pyramid AG   (M3AB:XTRA)

  • VenHub Global Inc   (VHUB:NASDAQ)

Getting Started ›