PSC Inc. (PCSX:Nasdaq) is targeting the supermarket
cashier as the next casualty of the tech revolution. A leader
in George Bush-baffling barcode scanners, PSC is rolling
out its U-Scan series of scanners that let shoppers scan
their own purchases.
Stores seem to like it because it only requires one cashier
to oversee every four checkout stations. Grocery and drug
retailer Kroger Co. (KR:NYSE) has already agreed to put
U-Scans in 50 of its stores, and other chains are close to
signing up too, said PSC CEO Robert Strandberg.
"Wal-Mart (WMT:NYSE) and a lot of companies are testing
it now," Strandberg said after his presentation. "We think
Wal-Mart will be the next one to sign up."
Good news, but will customers go for it? Strandberg says
those who have tried it like the speed and don't seem to
complain about having to do a checker's job themselves. If
retailers pass on lower costs to shoppers, as gas stations
did to make self-serve islands commonplace, it will be a
bigger carrot than faster checkouts.
And if U-Scan makes shoppers happy, it will make PSC's
investors happy, too. "We're looking to U-Scan to be a
foundation of our future revenue growth."
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Skeptical on Scanners
I was interested by your item on PSC Inc. Our local Kroger
tried customer-operated scanners (I have no way to know
whether they were made by PSC), and apparently the
arrangement was not satisfactory for someone, because the
scanners were removed. I personally found them easy to use
and convenient, but evidently I was in the minority. Also, I'm
skeptical that any cost savings would ever be passed on to
consumers. My guess would be that this company and its
stock will do well as various retailers try the system, but if
our local experience (Columbus is an often-used test market
because of its demographics) is any indication, I don't see
anything revolutionary here.
-- Carl Coles, Columbus, Ohio (received 4/30/98) |
