- Walmart to completely eliminate self-checkout systems at two stores
- As part of a broader trend, retailers are ditching self-checkout to minimize theft
- Walmart has not yet announced plans to remove machines from additional locations
Walmart continues to remove self-checkout machines from its stores in what it says is an effort to improve the “in-store experience” for customers.
At two stores, in Shrewsbury, Missouri, and Cleveland, Ohio, the retailer said it would replace kiosks with staffed checkout lanes that will “give our associates the opportunity to provide more personalized and efficient service.”
In reality, many retailers are abandoning self-checkout kiosks because they are especially vulnerable to thieves, and the world’s biggest U-turn retailer could be a historic moment.
“Most of the reduction in self-checkout systems is due to retailers’ concerns about theft,” Neil Saunders, CEO of GlobalData, told DailyMail.com.
‘Theft rates at self-checkouts are reasonably high due to both deliberate actions and accidental errors. Forcing more customers to use cash registers solves many of these problems and saves retailers money,” he added.
At two stores, in Missouri and Ohio, Walmart will completely replace self-checkout machines with “traditional” staffed lanes, as shown in the image.
“Most of the decline in self-checkout systems is due to retailers’ concerns about theft,” said Neil Saunders, CEO of GlobalData.
“We have decided to remove self-checkout lanes and replace them with staffed lanes at select locations,” a Walmart spokesperson told DailyMail.com.
“The decision was based on several factors, including associate and customer feedback, purchasing patterns and business needs in the area.”
They added that there is currently no plan to fully restore traditional lanes at any of its more than 4,500 stores in the United States.
Self-checkout lines are also more vulnerable to customer errors when scanning or weighing items.
Some products, such as fruits, meats, and freshly baked goods, do not have barcodes and must be manually entered into the system. Customers can intentionally or accidentally enter a cheaper product code, generating losses for stores.
It comes after three stores in Albuquerque, New Mexico, did the same last year, the Albuquerque Journal reported at the time.
And a host of other retailers are taking similar steps: Dollar General is eliminating lanes entirely, while it was recently revealed that Target was introducing sensors to detect theft.
A new system uses cameras and sensors to detect items that shoppers can’t scan and will notify them with audio and visual cues.
But the secret technology, known as TruScan, is different to simply having CCTV cameras focused on the area being monitored by security staff. Instead, it is thought to use computers with artificial intelligence to monitor shoppers as they scan items.
Self-checkout lanes are especially vulnerable to theft, as people are often trusted to pay for the correct items.
Target is rolling out new scanners to combat theft at its self-checkout machines, which will roll out to all stores by the end of the year.
Target began rolling out the cameras several months ago and will equip all of its U.S. stores with them by the end of the year.
Last month, Dollar General announced it would completely remove self-checkout kiosks from 300 of its stores with the highest levels of theft and incorrectly scanned items.
At another 9,000 locations, it said it is converting some of its self-checkouts to regular checkouts and will limit self-checkout purchases to five items or fewer at another 4,500 stores.
The company said the changes would help reduce “loss.” This is retail industry slang for merchandise losses due to theft, damaged items, and clerical errors.
“We believe these actions have the potential to have a material, positive impact on shrink,” Dollar General CEO Todd Vasos told analysts.