Chief Executive Officer Doug McMillon told employees gathered for Wal-Mart Stores Inc.'s annual shareholders meeting in June the retailer had an opportunity to "re-imagine retail."
Automated shopping carts could be part of the company's vision.
Wal-Mart received patent approval from the U.S. government last week for a system that would allow shopping carts to maneuver around stores without being touched by customers or employees. The "motorized transport units" consist of a detachable motor mounted at the bottom of the cart, video cameras and sensors. The units would communicate with a central computer and could be controlled by a smartphone.
Wal-Mart has no timeline for testing the self-driving carts or plans for rolling them out in stores. But the retailer indicated in a 62-page patent application the automated units are part of ongoing efforts to develop technology aimed at improving shopping for customers.
"With increasing competition from non-traditional shopping mechanisms, such as online shopping provided by e-commerce merchants and alternative store formats, it can be important for 'brick and mortar' retailers to focus on improving the overall customer experience and/or convenience," the retailer said in its patent application.
Wal-Mart's application outlined several ways the shopping carts could help those efforts.
Customers would be able to summon a cart with their mobile device. Once in their possession, the system would be capable of responding to voice commands and guide customers to products. When a cart is empty or no longer in use, it could be directed to return to a docking station to help keep the retailer's parking lots or aisles uncluttered.
The system could be utilized by employees as well to improve efficiency with other tasks like keeping track of inventory and determining if items are in stock, according to the application.
Carol Spieckerman, a retail consultant and president of Spieckerman Retail, said there likely are other potential uses for the technology as well.
"On the surface, motorized carts would seem to offer a solution for wrangling stray carts and thereby lower labor costs over time," Spieckerman said in an email. "However, Walmart rarely goes after solutions that provide singular benefits. The potential to add digital bells and whistles such as GPS tracking, digital payment, personalized shopping assistance, inventory management capabilities and more are surely part of the long-term picture."
Those possibilities lead Spieckerman to believe some form of a smart shopping cart will be in retail stores, although it's unclear when. She said Wal-Mart must ensure any bugs within the system are worked out before they roll out in stores and the retailer would "take the time" to get it right.
"Walmart is smart to invest in this technology now and take a first-mover advantage," Spieckerman said. "Others will surely follow."
Annibal Sodero, an assistant professor at the University of Arkansas Sam M. Walton College of Business, agreed it was a good move to patent the product because it blocks other companies who may be contemplating the same technology. He said the patent is further proof of Wal-Mart's desire to be innovative as it tries to drive customers to its stores while the retail landscape continues to change.
But while the cart could provide convenience to customers, Sodero remains "skeptical" they'll be employed by the retailer because of potential liabilities involved.
"These smart carts would have to interact with people. With me, with you, with our kids," Sodero said. "So this is definitely something completely different. A new technology. There are many risks involved. And I really don't see in terms of making the shopping experience more efficient. That might be possible. But I don't see how for now because of all these other trade-offs."
Wal-Mart continues to invest heavily in technology intended to make shopping in its stores easier as e-commerce spending in the country continues to rise.
The retailer has developed applications like its online grocery pickup service, which allows customers to place orders online, drive to the store and have them brought out to their cars. The retailer also rolled out its mobile payment service, Wal-Mart Pay, nationwide over the summer. Wal-Mart also revealed in June it was testing the use of drones in its distribution centers as a more efficient way to keep track of inventory.
Now, Wal-Mart is looking at the potential benefits from self-driving shopping carts.
"Wal-Mart was able to revolutionize retail using technology to better serve customers," Wal-Mart spokesman Lorenzo Lopez said in an email. "And as the retail landscape continues to evolve, we want to be able to serve customers when and how they want to shop. While it's too early to determine how we would even potentially use this technology, we will continue testing new and innovative ways to serve the customer."
Business on 09/17/2016