The Evolving Landscape of Self-Checkout Lanes: Convenience, Theft, and the Future of Retail
Self-checkout lanes have become a ubiquitous feature in grocery stores and retail outlets, sparking ongoing debate among shoppers and retailers alike. While some customers appreciate the speed and autonomy they offer, others lament the added responsibility, feeling it’s work that should be handled by a paid employee. Consequently, retailers are re-evaluating their self-checkout strategies, with some limiting their use or even eliminating them entirely due to rising theft rates, also known as "shrink" in the industry. This raises the critical question: what is the future of self-checkout? Are they here to stay, will new technologies emerge to address current challenges, or will retailers revert to traditional cashier-operated lanes?
Santiago Gallino, a marketing and operations professor at the Wharton School of the University of Pennsylvania, asserts that self-checkouts are not disappearing but are undergoing a significant transformation. He notes that while they offer convenience to shoppers and reduce the need for cashiers, they also present opportunities for shoplifting. A 2023 LendingTree survey revealed that 15% of self-checkout users admitted to intentionally stealing items, with a staggering 44% planning to repeat the act.
This trend is causing concern among retailers. A 2022 global study found that two-thirds of retailers surveyed believed self-checkout losses were becoming a growing problem. The National Retail Federation reported a substantial increase in shoplifting incidents and associated dollar losses between 2019 and 2023, highlighting the financial impact of theft on the retail sector.
David Johnston, Vice President of Asset Protection and Retail Operations at the NRF, emphasizes the need for retailers to carefully consider various factors to ensure that self-checkout benefits both consumers and businesses. Neil Saunders, a retail analyst at GlobalData, believes that while self-checkouts are unlikely to vanish entirely, many retailers are becoming more cautious and implementing stricter usage restrictions.
Recent news reports have highlighted changes in self-checkout policies at major retailers. Target, for example, has implemented a 10-item limit in some locations. A Target spokesperson clarified that this policy change, implemented in March 2024, was not a recent development and that the retailer is not removing self-checkout options. Instead, Target aims to improve the checkout experience through these adjustments. The spokesperson stated that the changes have resulted in faster transaction times and improved customer satisfaction scores.
Despite Target’s positive claims, some shoppers have expressed dissatisfaction with the 10-item limit, particularly when self-checkout lanes are empty or used by customers exceeding the limit, while cashier lanes remain congested. Saunders suggests that Target’s policy change aims to curb theft and reduce customer errors. However, it has led to increased pressure on manned checkouts and, in some instances, longer wait times due to insufficient staffing.
Other retailers are taking more drastic measures. Dollar General CEO Todd Vasos announced plans to convert some self-checkout registers to associate-assisted stations in a significant number of stores. The company is also reducing the number of self-checkout registers and limiting their use to customers with five items or less. In stores with high theft rates, self-checkouts are being removed altogether. Dollar General believes these changes will enhance customer engagement and reduce shrink.
Five Below has also moved to shopper-assisted checkout at all stores, where customers scan their items, but a cashier completes the transaction. These decisions reflect a growing trend among retailers to re-evaluate their self-checkout strategies and prioritize loss prevention and customer service.
Walmart has removed self-checkout machines in select locations and has been testing different usage models. Some lanes are reserved for Walmart+ members and drivers for its Spark delivery service. A Walmart spokesperson clarified that there are no current plans for nationwide self-checkout removals, emphasizing that decisions are based on customer and associate feedback, shopping patterns, and local business needs.
In contrast to these adjustments, Sam’s Club offers a Scan & Go system that allows shoppers to scan items using an app and bypass traditional checkout lanes altogether. The company has also introduced exit technology that utilizes AI to verify scanned items before an employee performs a final check. This approach offers a more streamlined and efficient checkout experience, potentially reducing both theft and customer wait times.
Gallino emphasizes that self-checkout presents both advantages and disadvantages for retailers and shoppers. For retailers, it can lead to cost savings through reduced staffing and faster checkout during peak hours. However, it can also result in higher theft rates and requires ongoing labor and supervision. For consumers, self-checkout offers speed and autonomy but can be frustrating when errors occur or age verification is required.
Gallino believes that retailers are not retreating from self-checkout entirely but are instead recalibrating their approach. He suggests that retailers are learning to strategically implement self-checkout, recognizing its potential benefits while mitigating its risks. This may involve a combination of technology upgrades, stricter usage policies, and increased staffing to supervise self-checkout areas.
The future of self-checkout is likely to involve a more nuanced approach, with retailers carefully considering their specific needs and customer demographics. Some may continue to offer self-checkout with certain restrictions, while others may opt for alternative solutions, such as shopper-assisted checkout or mobile scanning technologies. Ultimately, the goal is to strike a balance between convenience, cost efficiency, and loss prevention to create a positive shopping experience for both customers and retailers.
