Customer Service

Shopping wait time impacting retailer revenue

Adobe Stock

February 1, 2023

The cost of a shopper waiting in line at a physical store is having a negative impact on company revenues, according to 92% of retailers polled in a research report released by Zippin, a checkout-free solution provider.

The report revealed that the "state of retail post-pandemic," is driving a $555 billion headwind due to shoppers leaving checkout lines before completing a purchase, according to a press release.

In a consumer study conducted simultaneously by Zippin, more than half polled said they had left a store without purchase due to long lines in the last 12 months. Of those, 84% have done so at least twice in the last year alone. A good majority, 80%, of shoppers said since the pandemic they have had to stand in line more often when shopping in a retail store.

Brick and mortar retailers still account for 85.2% of retail transactions according to the U.S. Department of Commerce. Over two-thirds of brick-and-mortar retailers said the tight labor market is negatively impacting revenues.

"As we face a highly unpredictable macro economic climate, it's crucial that retailers don't leave money on the table, especially after they've done the hard work of bringing shoppers through their doors," Alice Chan, senior VP of marketing at Zippin, said in the release. "We've all asked ourselves: 'shall I stay or shall I go?' when we see just how long the checkout line is. The good news is that using tech to eliminate checkout lines will immediately unlock additional revenue and restore customer satisfaction. The frictionless economy is here."

The report revealed 14% of retailers are planning to address the issues with additional hiring. Technology is the most favored solution with 79% planning to implement either self-checkout (47%) or checkout-free (32%) to win back consumers who are tired of friction-filled in-store experiences.