UK retailers are embracing automation to reduce labor expenses and improve efficiency, but concerns arise about job losses.
The Rise of Automation in UK Retail: A Shift Towards Efficiency and Cost-Cutting
UK retailers are embracing automation to address the growing issue of rising labour costs, which are set to increase due to higher national minimum wage and employers’ national insurance contributions (NICs). As a result, investments in automation have become a top priority for many retail businesses.
Electronic Shelf Labels: A Growing Trend
One innovation that is gaining traction is electronic shelf labels. These labels can be updated in real-time, allowing retailers to quickly change prices without the need for manual intervention. Currys plans to introduce electronic pricing in 100 of its UK stores by the end of this year, while supermarket groups Sainsbury’s and The Co-op are also testing this technology.
Self-Service: A Growing Presence in Retail
Shopper-operated tills have become increasingly common in supermarkets, but expect to see more in fashion and homewares outlets. Primark has introduced self-service tills in 41 UK stores, with plans to extend to at least five more this spring. Next is piloting self-service tills in one branch, while Marks & Spencer is experimenting with technology that can ring up an entire basket of goods without the need for customers to scan them.
Warehouse Automation and Robots: A Growing Trend
Retailers have been gradually increasing automation in warehouses over the years, but labour costs are accelerating this trend. Sales of assembly line robots rose 31% in the first nine months of last year, according to trade body Automate UK. Amazon and John Lewis use autonomous robots to shift products around their warehouses, while Ocado‘s entire business model is based on robot-run warehouses.
Artificial Intelligence: Enhancing Store Operations
The Institute of Grocery Distribution (IGD) names AI-enabled cameras as one of the key technologies for improving store operations this year. These cameras can check for gaps on shelves in real-time and monitor how shoppers interact with products. Retailers also hope to cut waste and improve marketing efforts by using AI to analyse vast swathes of data or handle simple and repetitive tasks.
The Impact of Automation on Jobs
While automation may improve productivity, it will also replace entry-level jobs and reduce the number of roles in a sector that is the UK’s biggest employer. However, some retailers are exploring ways to mitigate this impact, such as upskilling existing staff or creating new roles focused on higher-value tasks.
The Future of Retail: A Shift Towards Automation
As labour costs continue to rise, it is likely that automation will play an increasingly important role in the retail industry. While there may be concerns about job losses, retailers are also exploring ways to enhance customer experience and improve operational efficiency through the use of technology.
