Retail in South Korea

2023: Theft, vandalism and drunkards. How shops work without cashiers in South Korea

On July 18, 2023, it became known that the work of automated stores in South Korea, which do not have cashiers, is fraught with numerous difficulties.

According to The Korea Herald, the owners of the new type of outlets themselves told about the problems. Full automation eliminates the costs and hassles of hiring and retaining traditional staff, they said. In some cases, pay can outperform profit, making maintaining such a business simply impractical. In such a situation, store automation is seen as a strategic choice for small companies, especially in segments such as convenience stores, cafes, etc. In addition, the absence of ordinary employees excludes conflicts between them: quarrels can negatively affect the reputation of the institution.

How shops work without cashiers in South Korea

There is always some drama among employees that often ends with someone suddenly quitting. I often have to intervene and take on the role of cashier, waiter or someone else, "notes Choi Hyun-chul, owner of a 24-hour restaurant in Kandongu.

However, in stores without cashiers, there is a higher level of theft compared to the usual outlets. Moreover, cases are recorded when visitors alleviate the need for such stores or commit acts of vandalism. Drunk shoppers leave a mess behind, and in February 2022 a man abandoned his dog at a self-service shop in Busan.

Despite these challenges, industry experts see the future of retail in automated stores, and related technology is rapidly evolving. In particular, the problem of theft can be solved using a system that automatically charges a person for any items that they take out of the store.^[1]

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