Is this the death of the self-checkout? As British supermarket removes self-service lanes, a host of US retailers consider following suit – after 15% of shoppers admit to STEALING through machines
They were promoted as a way to reduce headcount, increase efficiency and speed up queues.
But is self-checkout finally falling out of favor with retailers?
This week it emerged that British supermarket Booths has removed automated checkouts in all but two of its 28 stores. Director Nigel Murray told the newspaper BBC the machines were ‘unreliable and impersonal.’
And it appears to be only a matter of time before US chains follow suit, as rising theft rates make the services less and less viable.
In September, Walmart announced it is eliminating self-checkout lanes from at least three of its stores in Alburquerque, New Mexico. And last month, Target began limiting self-serve lines to customers who purchased 10 or fewer items in some of its stores.
Experts say self-checkouts contribute to higher product losses due to errors and intentional shoplifting. In the industry this phenomenon is called ‘shrink’.
In September, Walmart announced it is eliminating self-checkout lanes from at least three of its stores in Alburquerque, New Mexico.
The crux of the problem, experts say, is that self-checkouts contribute to higher product losses due to errors and intentional shoplifting. In the industry, this phenomenon is called the ‘shrink’: a growing headache for companies.
In 2022, retailers lost $112.2 billion due to the shrink, an increase of $20 billion from the previous year.
Self-checkouts make it easier for customers to steal because there aren’t enough staff on hand to make sure they scan their items correctly.
Some products – such as fruit, meat and freshly baked goods – do not have barcodes and must be entered manually into the system. Customers may intentionally or accidentally enter a cheaper product code, leading to losses for the stores.
An examination of the personal finance website Credit boompublished today, 15 percent of self-checkout users admit to stealing from a machine on purpose.
This figure rises to 31 percent when analyzing Gen Z shoppers and 21 percent for millennials.
Across the board, more than 60 percent of those who had stolen said they were sorry, 33 percent said they had been caught, but 44 percent said they would probably do it again.
Credit boom Chief Credit Analyst Matt Schulz said: ‘Ultimately, retailers must decide whether self-checkout terminals are worth the risk.
A recent report from the National Retail Federation found that retailers lost approximately $78.4 billion to shoplifters last year
This week it emerged that British supermarket Booths has removed automated checkouts in all but two of its 28 stores
“Certainly, they can help the store save money by requiring fewer people to check out customers.” The question, however, is whether these savings outweigh the potential increase in the number of thefts. That’s a question that many retailers are probably struggling with.’
In June, Costco announced it was adding more staff to its self-checkout areas after discovering non-members sneaking into stores and using membership cards that weren’t theirs.
The chain said in a statement at the time: “We do not believe it is right that non-members receive the same benefits and prices as our members.”
In addition to the huge losses retailers are suffering, there are also concerns that self-checkouts are exacerbating loneliness.
A survey by gambling site Play VS found that 54 percent of baby boomers – born between 1946 and 1964 – were not in favor of the technology.