The convenience of self-checkout, once hailed as a beacon of modern retail, is facing a reevaluation by major companies like Booths, Walmart, Wegmans, and Costco. Booths, a British supermarket chain, is phasing out self-checkout machines from all butw two of its 28 stores.1 Managing director Nigel Murray highlighted customer complaints about the machines being slow, unreliable, and impersonal, especially concerning the identification of fruits, vegetables, and age-restricted items like alcohol.2
Self-service machines, introduced in the 1980s to reduce labor costs, gained traction in the early 2000s as stores sought cost-cutting measures. During the pandemic, self-checkout use surged as consumers aimed to minimize close interactions with employees and fellow shoppers.3 However, retailers are now confronting the downsides associated with these systems.
Walmart has removed self-checkout machines in a few stores in New Mexico, and Costco said it will be adding more staff in self-checkout areas after it found that non-members were sneaking in to use membership cards that didn’t belong to them. Wegmans ended up canceling a mobile app last year that allowed customers to scan, bag, and pay for groceries while they shopped after reporting losses.
The Downsides of Self-Checkout
While self-checkout was initially seen as a cost-saving measure, recent studies show a darker side. These systems often lead to increased merchandise losses due to customer errors or intentional shoplifting, referred to as “shrink.” Multiple issues plague the efficiency of self-checkout, including difficulty scanning certain products, errors in item identification, and various methods of theft. Costco management believes that this shrink is definitely linked to the rolling out of self-checkout machines.
The task of correctly scanning and identifying items becomes particularly challenging with products lacking barcodes, like fresh produce and baked goods. Customers might inadvertently or intentionally enter incorrect codes, leading to losses for stores. Additionally, products with multiple barcodes or barcodes that fail to scan properly cause frustration at the checkout, contributing to delays and errors.
The Rising Tide Against Automation
The decision to remove self-checkouts echoes a growing sentiment against this technology. Other major American retailers like Walmart and Target have also adjusted their self-checkout strategies due to escalating theft rates. Retailers lost a staggering $112.2 billion to shrink in 2022, prompting concerns about the viability of self-service systems.
The prevalence of theft at self-checkouts has been a key concern for retailers, with some studies revealing alarming statistics. A survey by a personal finance website found that 15% of self-checkout users admitted to purposefully stealing from these machines. Moreover, this figure rose significantly among younger demographics, with 31% of Gen Z shoppers and 21% of millennials confessing to such actions.
Self Checkout: Efficiency vs. Customer Experience
While these automated systems aim to streamline processes, they sometimes sacrifice the human touch valued by customers. Engaging with cashiers remains an integral part of the shopping experience for many patrons, contributing to debates about the benefits of automation versus personalized service.
Booths’ stance against self-checkouts resonates with those who cherish human interaction in retail settings. Many customers, like Pat McCarthy, expressed dismay over losing the opportunity to engage briefly with staff members during their shopping experience. On the other hand, American big-box Walmart removing machines may be closer linked to profit loss than the “customer experience”.
As the retail landscape evolves, companies reevaluate the trade-offs between operational efficiency and the customer-centric approach that drives lasting satisfaction. By stepping back from self-checkout, these retailers are reiterating the significance of human interaction and tailored service in the shopping experience.
In response to mounting theft and dissatisfaction, some retailers are reconsidering their reliance on self-checkout. As they pivot their strategies, the retail industry is at a crossroads, navigating the delicate balance between technological advancements and preserving the essence of customer service.