Wegmans, the popular supermarket chain, will debut its in-store scan-and-go app this Sunday, September 18, 2022. Company: informed customers the news outlet in an email yesterday saying it had suffered too many losses Wegmans SCAN plan to continue making the mobile app available to users.
“Unfortunately, the losses we are experiencing from this program prevent us from continuing to make it available in its current state,” CEO Colin Wegman wrote in an email to customers. “We’ve learned a lot and will continue to introduce new digital solutions to make your shopping experience easier in the future.”
As a “token of appreciation” from the company, Wegmans applied a $20 coupon to each SCAN customer’s Shopper’s Club account.
While we know the SCAN app is hurting business, Wegmans declined to tell TechCrunch how much money it lost. The supermarket chain also did not provide any details on what future plans it has for “new digital solutions”.
“We’ve made the decision to shut down the app until we can make improvements that meet the needs of our customers and business,” the company told us.
The Wegmans SCAN app launched in 2020 during the pandemic as a contactless option for in-store shoppers. The free mobile app allowed users to easily scan barcodes while grocery shopping and pay for items faster at the self-checkout register.
Wegman’s losses from the app point to a common problem for companies that use in-store scan-and-go technology: shoplifting. Walmart has temporarily suspended Scan and Go, its cashierless payment program, because of the theft, a former Walmart executive said. Business Insider: In 2019, Walmart initially tested the technology in 2012 and has since relaunched the self-scanning system.
According to A 2018 study Data conducted by Professor Adrian Beck of the University of Leicester showed that product loss can increase by 1% with in-store scanning and go-to sales by 10%.
Another reason Wegmans might drop the app could be due to low user adoption. In 2020, the Wegmans SCAN app saw about 45% of its total installs, with around 142,000 downloads, according to Sensor Tower estimates. The mobile app market research firm told TechCrunch that the Wegmans SCAN app has reached approximately 319,000 installs to date.
When compared to a similar in-store scan-to-go app, Sainsbury’s SmartShop, the Wegmans scan app has fewer installs. SmartShop launched two years earlier than Wegmans SCAN and has now reached nearly 3.6 million installs, Sensor Tower said.