Content:
  1. The pace of development is moderate.
  2. Why was the project resumed?
  3. Autonomous stores are a global trend.

In Kyiv, PJSC "Kyivkhlib" is relaunching its chain of self-service stores. They are fully automated – operating without sales staff or consultants. Entry is gained by scanning a bank card. Payment for goods is also made by card – via NFC chip, using Apple Pay or Google Pay, or through a contact reader.

This is the company's second attempt to switch its stores to this new format. Kyivkhlib opened such stores in February 2024, but then shut down the project because blackouts and a decline in turnover at new retail outlets.

What made Kyivkhlib return to a format that previously proved unsuccessful? A correspondent investigated LIGA.net

The pace of development is moderate.

The Kyivkhlib network currently has about 200 stores operating throughout Kyiv. According to YouControl data, in 2024 the net income from sales of LLC "Kyivkhlib Brand Network" amounted to 545.2 million UAH, and in 2023 it was 580.86 million.

Beneficiary the asset management company "CPG Asset Management", the publication Nashi Groshi (Our Money) connectsa legal entity with Vyacheslav and Oleksandr Suprunenko.

Every year, Kyivkhlib plans to switch 10-20 retail outlets to autonomous operation, according to a comment. LIGA.netYaroslav Fedorenko, Chairman of the Supervisory Board of the Kyivkhlib branded network.

Restarting the project doesn't require significant investment: the company is using existing stores, he says. And key processes were already established: video surveillance and software are installed. They plan to use tablets and fiscal printers, previously used by salespeople, for payments. The devices will simply be turned towards the customer.

The moderate pace of self-service network development is due to potential revenue losses. According to the retailer's previous experience, when changing the format of a retail outlet, turnover sharply decreases for an average of six months. "Kyivkhlib is a social network; we don't have the strong capabilities to make drastic changes," adds Yaroslav Fedorenko. Therefore, the company will gradually introduce the new technology.

Why was the project resumed?

According to Fedorenko, the new and old Kyivkhlib retail outlets are comparable in terms of profit. However, the company predicts that after the war, automated stores will be able to earn much better – due to the fact that they will operate around the clock.

However, even during the war, automation provides an advantage. Fedorenko says that for Kyivkhlib, it is a point of stability in a situation of staff shortage.

"Today, it's incredibly difficult to find a salesperson. The situation is getting worse every month," says the top manager.

The company decided to use self-service stores to warn customers about a possible network outage due to staff shortages.

"Our goal was to find points of stability to prevent stores from being unable to operate due to a lack of sales staff. And then we would have to urgently switch to a self-service format," notes Fedorenko.

Kyivkhlib expects that there will be no blackouts in the capital this winter, as self-service stores are not adapted to such situations. "For such small stores, a full cycle of energy autonomy costing $10,000 is unprofitable. Therefore, we are not preparing for blackouts in any way," he adds.

Kyivkhlib does not currently plan to switch to 100% automation, but will remain on a mixed model. Autonomous modular stores are planned to be installed where opening a full-fledged store is economically unfeasible.

In locations with very high customer traffic, a cashier will be a better solution, Fedorenko notes. According to him, self-service is more suitable for points with average traffic, where automation does not create queues.

"As of now, the optimal solution for us is 30% automated stores and 70% stores with a salesperson," the top manager emphasizes.

Autonomous stores are a global trend.

According to McKinsey, autonomous stores have the potential to nearly double margins compared to traditional stores by reducing labor costs, improving inventory management, and optimizing operations.

In addition to cost savings, autonomous points provide 24/7 operation without days off, allowing for sales generation at any time of the day.

In global retail, self-service stores have become one of the top trends: in less than ten years, their number has grown from hundreds to thousands.

Amazon pioneered the "Just Walk Out" concept, launching Amazon Go stores in the US in 2018. Following them, Tesco in the UK opened cashierless supermarkets GetGo, and Carrefour in France launched Carrefour Flash 10/10 ("10 seconds to shop and 10 seconds to pay"). The German group Aldi tested the technology in a London store, Aldi Shop&Go. A startup called BingoBox also emerged in China.

In Ukraine, besides Kyivkhlib, two retailers have self-service stores. In December 2021, Auchan Ukraine opened its first unmanned pick-up point store. A similar store also appeared in the Thrash! discount store chain (part of Fozzy Group).

However, in the next five years, the number of unmanned stores on the Ukrainian market could grow to several tens or hundreds, they said LIGA.net in the press service of the Lutsk company "Modern-Expo". This is one of the world leaders in the production and supply of retail equipment.

Launching a self-checkout store requires investment – cameras, sensors, software, access control systems – however, with proper implementation, the format can significantly reduce operating costs, according to Modern-Expo. First and foremost, this means saving on the wages of cashiers or salespeople.

Ukrainian retail is ready for this, according to Modern-Expo. "Our companies are more flexible and faster to adopt new technologies, experimenting with digital solutions and optimizing business models," the Modern-Expo press service concludes.