Konzum reimagines cashierless retail

The advent of cashierless stores, a concept often referred to as checkout-free or Just Walk Out (actually an Amazon trademark), was heralded by some onlookers as the way forward for retail, especially small-box retail in busy locations. After the demise of Amazon Fresh, the withdrawal of similar tech by other retailers and the hybridisation of some concepts (adding in self-checkouts), these types of solution now appear to be interesting relics from a somewhat misguided journey to solve a problem that didn’t really exist.

While this type of solution appears to be an absolutely valid one in certain environments (sports stadia, music venues and maybe airports), it no longer appears to be any sort of panacea for urban convenience. Part of the issue was that – although these concepts were erroneously referred to as staff-less stores or unattended retail – many of them were actually heavily staffed, were often prone to inventive criminality and were generally solving a problem that never existed in the first place. An expensive piece of tech showboating really.  

Unattended retail certainly has its place: indeed, I’ve encountered some absolutely brilliant iterations, but – ironically – these seem to work best in rural or suburban locations where opening a proper shop would not make economic sense. Many of these are essentially souped-up vending machines or self-service, self-checkout concepts that rely on payment card access, a lot of surveillance and a lot more trust.  

I was recently prompted to consider the somewhat chequered performance of cashierless stores when I revisited the Konzum Smart store in Zagreb. This was a store that required a payment card-linked app to enter before shoppers could select their items and simply walk out. However – and this has been a constant theme in the evolution of such concepts – the removal of friction leaving the store was nowhere near enough to compensate for the friction of getting in there in the first place, especially for tourists.

The store opened in 2023 and I recently went back to discover a fair bit had changed. The most obvious aspect was the name: from Konzum Smart to Minute by Konzum. I quite like this: Minute is a long-standing private label range (pizza, sauces, frozen items, noodles, pasta, desserts, fruit, drinks etc.) and food-to-go concept that was originally developed by Mercator, the Slovenian retailer that is also part of Fortenova Group. It’s good to see a bit of synergistic benefit actually out on the wild rather than confined to a boardroom presentation.

The Minute range was very visible in a range that has also been radically overhauled. The broader assortment is now a lot more centred around immediate and imminent consumption: coffee, bakery, sandwiches, salads, prepared meals and chilled drinks dominate the range.

The take-home grocery range has been significantly pared back (frozen consists solely of an ice-cream freezer); health & beauty is very focused and household has been stripped back massively (there is now a single bay for each). There is also a very smart healthier eating / Free From section, an upweighted selection of global flavours and expanded space for souvenirs.  

In terms of the checkout process, it is much less daunting for the uninitiated while still offering the ultra-convenience for those who enjoyed the checkout-free experience. Smart shoppers have their own entrance where they can check in with the app and complete their ‘Smart’ shop, while others can opt for the ’classic’ experience of using a self-checkout.   

Sales have reportedly responded very favourably to the changes, I guess principally because the store is now easily accessible to everyone, but also because the range is now much more focused on the missions that matter in urban convenience. A nice example of evolution that is grounded in shopper-first thinking.