They were introduced as a way to reduce queues, improve in-store efficiency and reduce staffing levels – and have gained popularity during the Covid-19 pandemic.
But is self-checkout losing favor with big retailers?
In recent weeks, Dollar General, Target and Walmart have all announced sweeping changes to automated registers in stores across the United States.
Experts say the decline is mostly driven by fears about theft, because it’s much easier for customers to steal items at the self-checkout counter than at the checkout counter.
But retailers say they’re also trying to provide a better shopping experience for customers by putting limits on self-checkout, making the process faster and easier.
Dollar General is among retailers that have announced sweeping changes to automated registers in stores across the United States.
Last week, Dollar General announced it was removing self-checkouts entirely from 300 of its stores with the highest levels of shoplifting and improperly scanned items.
At 9,000 other locations, the company said it is converting some of its self-checkouts to regular checkouts and limiting self-checkouts to five items or fewer at another 4,500 stores.
The company said the changes would help reduce “shrinkage.” It’s retail industry jargon for merchandise loss due to theft, damaged items and administrative errors.
“We believe these actions have the potential to have a material and positive impact on shrink,” Dollar General CEO Todd Vasos said Thursday on a call with analysts.
According to a study of retailers in the US, UK and other European countries, stores with self-checkouts had a shrink rate about 4% higher than the industry average.
“Most of the withdrawal of self-checkouts is due to retailers’ concerns about theft,” Neil Saunders, managing director of GlobalData, told DailyMail.com.
“Theft rates at self-checkouts are reasonably high, both due to deliberate actions and accidental errors. Forcing more customers to use staffed checkouts solves many of these problems and saves retailers money.
“Most of the withdrawal of self-checkouts is due to retailers’ concerns about theft,” said Neil Saunders, managing director of GlobalData.
Self-checkouts are also more vulnerable to customer errors when scanning or weighing items.
Some products, such as fruit, meat and freshly cooked produce, do not have a barcode and must be manually entered into the system. Customers may intentionally or accidentally enter a cheaper product code, creating losses for stores.
A study last year by personal finance site LendingTree found that 15% of self-checkout users admitted to deliberately stealing a machine.
This figure increased to 31% when analyzing Gen Z buyers and 21% for Millennials.
Instead of cutting back on self-checkouts altogether, Target announced last week that it was limiting the number of items shoppers can purchase at self-checkouts.
Following a trial in some stores in the United States, Target has moved to “express self-checkout” in most of its 2,000 stores, meaning customers can only purchase 10 items or fewer.
The company also announced it was opening more staffed cash registers in new locations.
“Checkout is one of the most important parts of the Target shopping trip, and we know that a quick and easy experience – whether at the ATM or in the lanes manned by our friendly team members – is essential to so customers can leave quickly,” the company said in a statement.
Customers have long complained about snaking queues at stores and long wait times to get help at a self-checkout if there is a technical problem or if an item needs to be approved by a staff member.
Target said it wants to reduce wait times for customers and make in-store shopping easier.
Target has moved to “express self-checkout” in most of its 2,000 stores, meaning customers can only purchase 10 items or fewer.
Walmart, meanwhile, was forced to clarify after social media users claimed it had limited its self-checkout lines to only those with a Walmart+ subscription, effectively forcing people to pay $98 per year to be able to use the service.
The company said stores typically offer self-checkouts open to the general public and Walmart+ members.
But some locations may choose to temporarily limit automated registers based on customer flow, meaning that sometimes the only self-checkout lines open are those reserved for Walmart+ members.
But this is at the discretion of store managers and is not a company directive, Walmart said.
Despite these changes, retail expert Neil Saunders believes self-checkouts are unlikely to disappear completely, although there will be many more restrictions on their use.
He added: “Of course the main thing is to make sure there are enough registers open to compensate. If retailers don’t do this, they will lead to longer lines and wait times that annoy customers.
