
These
days, New York is one of the safest cities in the world. But there
are some places that remain remarkably treacherous: supermarket
aisles. Larry White guides us through
the Express Lane.
ife in modern New
York engenders a great deal of uncertainty, even anxiety. For many residents
of Gotham, the basics of everyday life are frequently a question of
chance: finding an affordable apartment, hailing a taxi during rush
hour, getting a reservation at that hot new Asian/Italian/Peruvian restaurant.
And every day, hundreds of thousands of New Yorkers involuntarily take
their chances in another game of chance they surely would prefer not
to play: supermarket checkout roulette.
When shoppers load up their carts at DAgostinos or the
Food Emporium, and head down their final aisle, a series of questions
pop up: Which is the fastest checkout line? How many people are in which
line? How full are their shopping carts? Which checkout clerk is the
speediest? Will the woman in front of me decide to write a check? Or
ask for a price verification? Will the store manager have to come over?
To top it all off, we risk being flattened by speeding shopping carts
when a new checkout line suddenly opens. Indeed, the traffic jams of
maneuvering carts frequently rival those of the approach to the 59th
St. Bridge at rush hour.
In recent years, the supermarket industry has introduced some wrinkles
that it plainly believes will improve shoppers odds. But while
well-meaning, these efforts have largely failed. The ten items
or fewer line doesnt really solve the problem. Our anxiety
levels are just as high when we scrutinize the baskets of the people
in front of us and wonder whether we should challenge the man who clearly
has thirteen items in his basket. Does the two cans for a dollar
special count as one item or two? How about two six-packs of Sprite?
Do they comprise two items or twelve? And while barcode scanners at
checkout counters have been beneficial, they haven't really eliminated
the roulette game.
Of course, this is one area of retailing in which New Yorkers can comfort
ourselves that were not at a disadvantage. Supermarkets throughout
the country have persisted in this entirely archaic checkout system
for decades.
ut there is a better
way and one that is based on sound economic principles. For at
least thirty years, many banks and airlines have served their customers
through a system of one line serves all. All customers form
a single line and then proceed to the next open teller or clerk, whether
they are cashing twenty-five checks worth $500,000 or depositing two
rolls of quarters, whether they are buying a ticket to France or vainly
attempting to get a better seat. Even the legendarily logy Post Office
has adopted this system. And the take a number system employed
by bakeries, butchers, and delicatessens is partly designed to accomplish
the same end.
Now, as any management expert could tell you, the one-line-serves-all
method doesnt speed customers through service lines any faster
on average. But it does have the salutary result of reducing
variance and the elements of luck. And as any psychologist could tell
you, that surely reduces anxiety. For New Yorkers, what could be of
greater value?
So, why haven't the supermarkets followed the lead of their counterparts
in banking and airlines? Could this all be a conspiracy by the tabloid
publishers, who want shoppers to linger in line and buy their latest
alien revelations? But the current system isnt any slower on average;
it just increases variance and anxiety. So, the tabloids could still
have the same average shot at you in that single waiting line. Tempting
as it is, we can not collar them as the villains.
n its defense, the
supermarket industry would probably complain about the scarce (and expensive)
square feet of selling space and the extra problems of shopping carts.
But this would just be an alibi to cover their sluggishness. Space is
scarce for every retailer in New York, and shopping carts are simply
an extra complication, not an insuperable barrier to change. Anyone
who wants to see how the one-line-serves-all system could be successfully
adapted to similar retailing should pay a visit to any Old Navy store.
Supermarkets may also pull out a trump card: technology. After all,
we have been told that customer-held checkout computers, which will
eliminate unpredictable lines and hence anxiety, will appear imminently.
With all due respect, people who believe this claim have been reading
too many of those tabloids while waiting for the store manager to verify
the price of asparagus.
Can the academic business literature help explain why the supermarket
industry has been so slow? Unfortunately, standard microeconomics is
not much help here. There are enough supermarket chains remaining in
this country so that at least one of them would have experimented with
one-line-serves-all. But it hasn't happened yet.
And this state of affairs cant be a problem of network economics.
Unlike the prevalent and highly efficient barcode/scanner technology,
which required group action and cooperation between manufacturers, distributors,
and retailers, the rearrangement of a supermarket floor layout to accommodate
one-line-serves-all could be undertaken by a single actor. All it would
take is one brave supermarket. But, again, it hasn't happened.
It is this economists humble opinion that we need to explore more
sociological dimensions. Supermarkets, after all, are a relatively old
industry. (They date to the 1930s.) And it is one in which technological
change or even any kind of change does not happen often.
The last major innovation in supermarkets (aside from the bulk-food
sections) was the bar code/scanner technology, which is now over 20
years old. We have to go back to the 1950s and the cash register
that automatically calculates and dispenses change to find another
leap forward.
One major innovation every 20 years seems to be the norm for this industry.
And if the hand-held checkout computer is the current focus of industry
attention, then I fear we may have to wait another 20 years before one-line-serves-all
is even considered. In this age of rapid technological improvement,
surely the supermarket industry can do better than that.
Ralph Waldo Emerson told us that the world would beat a path to the
person who invents a better mousetrap. I'll settle for a better supermarket
checkout system, and I will be eager to take my business to the chain
that develops it first.
Lawrence J. White is professor of economics at Stern.