Dollar General has stopped using self-checkout systems in 12,000 of its stores, leaving them in only a handful of them.
It is by far the biggest U-turn by a major retailer on the controversial technology, and the details are outlined in an internal staff manual discovered by DailyMail.com.
The value store spent millions of dollars installing self-checkouts, but thefts have since skyrocketed. Employers say thefts related to the kiosks were the main reason profits fell earlier this year.
Instead of eliminating self-checkouts, stores will now cordon them off and customers will be directed to use the remaining brick-and-mortar lanes.
But if lines for them grow, Dollar General workers will temporarily open what used to be self-checkout lanes and scan items for buyers.
Clients cannot use them on their own, according to the staff handbook.
Dollar General spent tens of millions implementing self-checkouts; Now they have closed most of them due to theft. Staff will operate as normal registration only when lines grow.
Dollar General has a staff handbook that explains that self-checkout systems are now closed and customers will not be allowed to use them on their own. But staff can open them as a “queue-busting check-in” to help customers when stores are busy.
Used in this way, with staff operating, the old self-checkouts are known as “linebreaker registers,” the staff manual explains.
It says: “LineBuster registration assistance is needed when three or more customers are queued at a main register.”
He goes on to explain that staff should operate it as if it were a normal cash register, interacting with the customer throughout the transaction and thanking them when they leave.
Registries can accept all forms of payment except checks. Cash is put into a slot and change is returned.
There is a “customer FAQ” section in the document for staff to help deal with buyers.
When asked, ‘Why do you insist on helping if you don’t trust me?’ Staff should say, “Of course we trust you.” We just want to help you and improve our service.’
Dollar General began aggressively rolling out self-checkout kiosks in 2022.
By the beginning of the following year they were in just over two-thirds of their 20,000 stores. He even tested stores with just the seasons.
Chief Executive Todd Vasos said the hasty U-turn in recent months was driven by a desire to reduce growing “mergering,” the retail term for theft.
He said they have been removed from 12,000 stores, meaning only a few hundred still have them.
Vasos was updating investors and analysts on May 30, after the retailer released its earnings for the three months to May 3. Sales rose 6 percent to $9.9 billion, but profits fell 26 percent.
He said automatic payments will only be available “at a limited number of stores, most of which are higher volume, low loss locations.”
Self-checkout systems were introduced as a way to reduce queues, increase efficiency in stores and reduce staffing, and have grown in popularity during the Covid-19 pandemic.
But the backlash against self-checkout systems is growing, with shoppers and store staff alike turning against them.
Customers feel they are being forced to work for free, while store bosses blame them for the rise in theft.
Walmart, the largest retailer in the United States, has completely removed them from at least six stores this year.
Target has done so in at least one store, even after committing to them in all of its 2,000 stores in March. At that time, he implemented a ten-item limit to make the lines move faster.
The question-and-answer section of Dollar General’s staff manual tells staff what to say when customers ask, “Don’t you trust me?” Staff should say: ‘Of course we trust you. We just want to help you and improve our service.’
Todd Vasos, CEO of Dollar General, said theft was a key reason for closing all of the retailer’s self-checkout lanes. But he added that customers like the extra interaction with staff.
Kroger also added traditional checkout lanes at a store in Texas where it previously only offered self-checkout machines, The Dallas Morning News reported.
Meanwhile, Costco began placing additional staff at self-checkout areas to supervise shoppers and ensure all items are scanned correctly.
Vasos was asked what Dollar General had seen in the 12,000 stores.
“There’s no doubt we’re getting positive feedback from customers across the board on the 9,000 and, frankly, some of the 3,000 that we did in May,” he said.
“Consumers… like the interaction at the front of the store.”
Dollar General was contacted for comment Tuesday but did not respond.