[Convenience Store Empire] When You Grab a Product, You're Already at the Checkout... AI Convenience Stores Have Come This Far

Completely Unmanned Convenience Stores Without Checkout Counters, GS25 Also Introduces
CU Differentiates with Facial Recognition, Emart24 with Fully Open Access
Evolution of AI Convenience Stores... Shorter Customer Time and Increased Convenience

Jae-won Lee (pseudonym), who works in Geumcheon-gu, Seoul, has recently been frequenting the newly opened convenience store 'GS25 DX Lab Gasan Smart Branch' near Gasan Digital Complex Station. He simply opens the GS25 application (app) he has been using, scans the QR code to enter the store, selects products, and exits through the exit, and the payment is automatically processed. According to Mr. Lee, it is convenient because promotions such as 1+1 are automatically applied, and discounts from mobile carriers pre-registered in the app are also automatically applied, saving time and eliminating the hassle of the payment process.

The convenience store industry is intensifying experiments with 'completely unmanned convenience stores without cash registers.' Similar to the American 'Amazon Go,' these stores operate the entire consumer process?from entry, customer service, product purchase, to payment?without human intervention, relying solely on AI solutions. Since the first AI convenience store was introduced in Korea in 2021 during the height of the COVID-19 pandemic, it has been evolving step by step.

According to the distribution industry on the 10th, the AI convenience store 'Gasan Smart Branch' opened by GS25 on the 5th has strengths compared to other fully unmanned convenience stores that appeared in the industry since 2021: it allows entry in various ways, promotions, discounts, and point accumulation are automatically applied when entering through the app, and it operates as a fully open store accessible to anyone.

Each company has slightly different features for their AI convenience stores. Among domestic convenience stores, CU was the first to attempt a fully unmanned convenience store. CU introduced the 'CU Samsung Bioepis Branch' inside the Samsung Bioepis building in Yeonsu-gu, Incheon, in January 2021, and currently operates four such 'Tech Friendly CU' stores nationwide. Tech Friendly CU stores are located inside office buildings, allowing only limited customers who use the office to visit. While this makes customer management easier for operators, the limited user base is a drawback. Entry is currently only possible through the CU app, with Naver QR integration planned.

Visitors are selecting products at the fully unmanned convenience store 'Tech Friendly CU'
[Photo by CU].

However, once facial information and 'CU Byself' information are registered once at the facial registration kiosk installed at the Tech Friendly CU entrance, customers can enter the store and pay for products on subsequent visits by face scan alone without a mobile phone. Tech Friendly CU applies BGF Retail's proprietary 'Cloud POS system.' Inside the store, about 30 AI cameras?including vision cams (tracking product movement), motion cams (tracking customer paths), and 360 cams (capturing store panoramas)?along with shelf weight sensors detecting weight changes as small as 15g, identify the visitor's final shopping list.

Tech Friendly CU has a maximum of about 200 visitors per day. Although the number of customers is about half that of a regular store, considering that alcohol and tobacco are not sold, the sales level is solid. As it is located in an office district, from January to September this year, coffee (13.1%), functional beverages (9.2%), and processed meat products (7.5%) were the most popular items.

The AI convenience store 'Emart24 Smart COEX Branch,' introduced by Emart24 in September 2021 at COEX in Gangnam-gu, Seoul, was the first fully unmanned convenience store targeting the general public. It applied Shinsegae I&C's proprietary 'Self-Service Store' technology. Although it is a testbed-type demonstration store, it is open to the general public at all times, allowing anyone to use it. Entry is conducted through credit card authentication.

Last month, the 'One-Stop Gate' technology was applied, allowing customers to enter immediately after credit card authentication at the gate, reducing entry time by more than half compared to before. This store also handles tobacco, which accounts for about 40% of convenience store sales, through an adult-certified smart tobacco vending machine. Average sales and visitors at Emart24 Smart COEX Branch this year have doubled compared to 2021. Promotional products such as 1+1 and 2+1 are also applied here. However, promotional products not taken out are not automatically saved in the app.

Visitors are entering through the one-stop gate at 'Emart24 Smart COEX Store'
[Photo by Emart24].

The Gasan Smart Branch opened by GS25 this month differentiates itself by absorbing the advantages of the previous two stores: it allows entry through various methods such as the GS25 app, credit cards, and Kakao QR; promotional products like 1+1 are immediately applied; and it operates as a fully open store accessible to anyone. Promotional items not taken out are saved in the app's storage system called 'My Own Refrigerator,' allowing customers to pick them up later at a staffed convenience store.

As test stores gradually evolve, it is expected that AI convenience stores where customers pick up items and leave immediately, beyond unmanned convenience stores with self-checkout but no staff, will expand. An industry insider said, "Considering efficiency such as profit relative to operating costs, full commercialization is still premature, but the plan is to expand such stores by finding locations where this method works well through commercial area analysis."

Visitors are examining the smart cigarette vending machine at 'GS25 DX LAB Gasan Smart Branch'
[Photo by GS25].