ozzieeagle

First I've heard of it.

Wonder if we've got one in Melbourne ?

Beoz

And gas stations are a prime example of job creation. The man power has shifted indoors surrounded by groceries and coffee. Why haven't more gas stations got the credit card machine at the pump? So you go inside, walk through all the sweets and goodies and spend more money. Would you like a chocolate bar with that? Automation can't upsell in that type of situation.

Interestingly I was in Italy a few weeks back and I stopped the rental car at a gas station near the airport. There was a gas pumper with a mobile credit card machine. I asked him why, and he said they were busy and they could get more cars through if they pumped and took the cash or CC on the spot.

GarryP

It kind of raises the point, what customer facing retail type services will keep the human element?

Those that take the money etc, I think will go. Pretty much impossible to find them in shops like KMart anyway and it's a fairly generic role, therefore a big market for the automators.

Assistant types will probably also go. Most people realise that a spotty teenagers in any shop is not going to give good advise, and again, its generic and therefore a target.

Shelf stackers, cleaners, etc. are an interesting one. Its actually harder to automate, so they will probably hang on for longer, particularly since you can use them only at defined times. The meek shall inherit the store.

The personal service types; hairdresser, etc. much more likely to survive, if they can get the service part down pat.

Security is another interesting area. Reality is they can't actually do much physical since they can be charged with assault. So flip side is you might need to prove identity to enter the store in the first place (face recognition etc.) with known thieves getting banned instead.

All up I'd guess more than half of employees in that space will go, over a period of time. Then when you add in drones and mobile fulfillment, you do have to ask if the malls will be viable? The real kicker will be when the supermarkets switch to primarily online & delivery - that would kill most malls.

Beoz

In reality there is no need for malls now. What can't you buy online that you can in a mall ..... well there's a few things.

1. A place to go and hang out (as sad as it sounds its true). Look at Asian countries - they just love the mall. Its airconditioned. It has restaurants all in one place, cimema's, etc. They are urbanised villages all under one roof. Not everyone likes hanging out at home on BE

2. Test driving products. Many things likes beds, sofa's, clothing, TV's etc all want to be felt or observed in the flesh before a puchase.

3. Live browsing. I say to Mrs Beoz, why don't you just do the weekly grocery shop online and have it delivered? After all 90% of what she buys is the same from one week to the next. Perhaps its because she's a woman, but she loves the idea of feeding her eyes with mulitple products at once. Online and webpages are very much focused on showing you a few items on one page, in a supermarket your eyes can view many products all at once making the task of shopping appear easier giving the shopper a better sense of control.

4. ??????? Ask Westfield, they keep growing.

Logic has always dictated retail should be automated, and malls should be dead and buried, but the retailers keep serving up ways and means of making the consumer come.

GarryP

Actually, if you look at malls today, you tend to find that outside the supermarkets, banks, etc. they are tending to be made up of personal services (eg things where you have to be present) and $1 shops. There's a reason why MSY shops are in the cheapest locations.

And auspost have been a godsend for aus retail - they are so cr*p that online can't flourish as it has elsewhere. That's only temporary (amazon).

Beoz

That's the point. The make up of a mall will be full of things that attract people. Always have, always will. Sure we will see less banks in malls (or a smaller bank footprint ..... more on that in a minute) but a larger footprint for things like K-mart, supermarkets, restaurants, Apple stores (heaven help us) where humans want to be present. Evolution baby. And where there's people there will be sellers trying to get you to spend. Upselling and onselling. Human to human transaction creation.

Interestingly I had to shuffle a large sum of money I had (through no other option) into an old Commonwealth Bank account. That account did not allow the transfer to a non CBA account. Weird I know. So into the CBA bank I went. Tellers have now come out from behind the counter and there was plenty of them. It was beautiful the way it worked. All I wanted was my large sum of money. All the tellers wanted to do was to keep that money in the CBA. "Can I get you a mortgage, can I get you a term deposit, can I get you a managed fund?". And with all this automation around us, I walked out of there with that large sum of cash in 3 envelopes. Unreal but it was the way it was.

But the moral of the story is, its us humans that make decision about our transactions and the best form of upselling or onselling is human to human contact. You can't replace that, even with automation.

GarryP

And as I pointed out, if/when those supermarkets go, I'm not sure the rest will survive, since the passing traffic will crater.

Seems like the moral of the story is that humans are annoying, in the same way banner ads are, and that their trying to secure commission for themselves will push people towards automated solutions even faster.

And as far as upselling is concerned, an AI solution that can recognise you, recognise how thousands of similar people to you have behaved in the past, and can offer a personalised upsell in a way that won't annoy you - seems like it will wipe the floor with the expensive and usually just annoying, human sales staff.

Beoz

Yeah but as I pointed out earlier, whilst you and I could do away with the supermarket, a certain gender can't. In fact a certain gender can't do away shopping all together.

Ok forget the annoyances of an upsell for a minute. What about general help? Which isle do you keep the tomato sauce in? I was in a newly opened Bunnings yesterday, I need a new fence built and I have no idea if this is a DIY job or not. A couple of the guys working in the timber section were carpenters. They gave me all the ins and outs of wood types, finishes, installation techniques, etc, etc. They even offered to build the fence on their days off.

Upselling is more than just banner ads. Its adding value. AV rather than AI. Read B4B and Consumption Economics.

BadgeIsBack

Security guards can revoke anyone's license to be on a premises by telling them - they don't just assault people for the sake of it - we will probably need more security in the coming years.

As for malls. The people who patronise them will be new migrants from the 3rd world who will see that lifestyle as the pinnacle of their achievements. When you have been brought up in relative poverty in the Philippines, living in Caroline Springs and going to Highpoint to spend, have lunch and see a movie (or at home on the big TV) means you have arrived in the 1st world and got tenure. I know this because such people work on our teams. It's part of an experienced-led life which automation will help fund to some extent.

GarryP - the people at Bunnings are mostly ex-tradies and far from annoying. It's easy for the affluent to source from Amazon for their boxsets but some activities will remain personalised. Again, personalisation and doing things in person will be the sign of affluence. Otherwise we would all have TV dinners at home and would never pay for customer service - there are more cafes than ever in the 1st world.

Amazulu

Everywhere you go in the world now there are shopping malls - and despite the rise of online shopping, they are still very popular. I don't go to a mall that often but I was in one today and I struggled to park and it was packed. There must be at least $3-4 billion planned investment in existing and new shopping malls in Perth alone

BadgeIsBack

The Australian Financial Review on Friday still carries a Luxury colour glossy because it can: high rollers still demand it. As the rest of us plebs stay inside getting off on our latest drone delivery the Chinese and Asian middle class in their millions will be wanting to differentiate by demanding real items, and real experiences. It's like people want artisanal goods now. In fact tech and automation whilst a boon to many will become a distinct bore to others ..

Shard

Agree with most of your points. On supers, not sure if they will make that switch, there definitely seems to be two distinct types of shoppers out there (online and go to store). Britain has highly developed online and delivery service, some swear by it, but there are many that simply want to go to the supermarket and decide in real time. If anything, I think supers will capitalise on this and make it more a 'high touch' situation (to some extend they already are, with in store cafes, etc.). The masses of leisured citizens will need somewhere to go, afterall.

Beoz

You and Garry don't mix with women much right?

scrubbedexpat098

Beoz

Well it seems to be black or white with those 2. Either its all online shopping or its in store shopping.

There may be a slight chance (probably a big chance) its a mix of both. Sure you can buy a TV online, you can read all the reviews, but at the end of the day, you are going to want to see it in action in a store first.

And if you are a man wanting that TV, and you go and check it out on a Sunday at JBHIFI, the wife and children are going to want to come with. The wife wants the opportunity to browse (and ultimately buy) in David Jones, the children want their ice cream, or play in the playland.

Of course this all means nothing if we are all automated out of work. No one will have money to buy anything. Online or in store. And that won't be a job threat, a rise in unemployment threat, it will mean a total society collapse.