Fung Retailing Group’s Circle K convenience-store chain has unveiled an AI-powered in-store checkout solution. The launch is a result of the strategic partnership between Fung Retailing Group and JD.com signed in 2018. The AI-powered checkout solution is the first AI checkout using image recognition technology in Hong Kong.  Customers can complete the AI-powered checkout process in seconds with three simple steps: 

• Place products on the smart checkout counter 
• Press the A.I. Recognition (A.I.R.) button on the cashier screen to scan the products 
• Make payment with an Octopus card, a stored value payment card originally designed for use for mass transportation but which is now used for many payment types.

[caption id="attachment_80746" align="aligncenter" width="664"] Source: Fung Retailing Group[/caption] The checkout counter can recognize up to five products within one second with an accuracy rate of over 97%, reducing the overall in-store checkout time by 30%, according to Fung Retailing Group. Leveraging image recognition technology, the checkout counter can recognize products such as drinks, tissue, snacks and even fresh bread without a barcode, RFID or packaging - over 500 stock keeping units. Staff can add new products into the system by using the same checkout machine to scan the products, and the database is updated within a day. This technology is currently installed at the A.I. Retailing Zone in two Circle K stores in Hong Kong:

• Shop 126 1st Floor, liberté place, No. 833 Lai Chi Kok Road, Kowloon
• Shop Nos. 9-12 on Ground Floor and Unit Nos. 9-11 on First Floor, Excelsior Plaza, Yee On Building, No. 26 East Point Road, Hong Kong

Insights As technology continues to play a critical role in transforming the retail landscape, retailers who are able to capitalize on this trend will have a competitive edge. In particular, this kind of technology gives grocery and convenience-store retailers the ability to eliminate friction in the shopping process for frequent, nondiscretionary purchases. This pilot project represents a first step for Fung Retailing Group and JD.com to create smarter and more convenient retail.