Wegmans is discontinuing its mobile app for in-store scanning, citing high losses

Wegmans, the popular supermarket chain, will remove its in-store scanning app this Sunday, September 18, 2022. The company informed customers from the news in an email yesterday stating that he had suffered too many losses from Wegmans SCAN program to continue making the mobile app available to users.

“Unfortunately, the losses we are experiencing from this program prevent us from continuing to provide it in its current state,” CEO Colleen Wegman wrote in the email to customers. “We’ve learned a lot and will continue to introduce new digital solutions to streamline your shopping experience going forward.”

As a “token of thanks” from the company, Wegmans applied a $20 coupon to every SCAN customer’s Shoppers Club accounts.

While we know the SCAN app is hurting business, Wegmans declined to share with TechCrunch how much money it lost. The supermarket chain also did not offer any details on what its future plans for “new digital solutions” are.

“We’ve made the decision to shut down the app until we can make improvements that will meet the needs of our customers and businesses,” 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 conveniently scan barcodes while grocery shopping and pay for items faster at checkout.

Wegman’s losses from the app point to a common problem among companies that use in-store scan-and-go technology — shoplifting. Walmart has temporarily suspended Scan and Go, its cashier-less checkout program, due to theft, a former Walmart executive said Business Insider in 2019. Walmart initially tested the technology in 2012 and has since relaunched the self-scan system.

According to a 2018 survey conducted by University of Leicester professor Adrian Beck, the data shows that product loss can increase by an additional 1% for 10% of scan-and-go-store sales.

Another reason Wegmans may abandon the app could be due to low consumer adoption. In 2020, the Wegmans SCAN app scored about 45% of its total installs, with about 142,000 downloads, Sensor Tower estimates. The mobile app market intelligence firm told TechCrunch that the Wegmans SCAN app has reached approximately 319,000 installs to date.

Compared to a similar in-store scanning app, Sainsbury’s SmartShop, the Wegmans scanning app has fewer installs. SmartShop launched two years earlier than Wegmans SCAN and has now grown to about 3.6 million installations, Sensor Tower said.

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