Massive U-turn as Dollar General ditches self-checkouts in 12,000 stores – but not because they care about customer service

Dollar General has discontinued the use of self-checkouts in 12,000 of its stores, leaving them in just a handful of stores.

It is by far the biggest U-turn by a major retailer on the controversial technology, and details are outlined in an internal employee handbook revealed by DailyMail.com.

The value store spent millions of dollars installing the self-checkouts, but since then the number of thefts has skyrocketed. Bosses say shoplifting linked to the kiosks was the main reason profits fell earlier this year.

Instead of eliminating self-checkouts, stores will now shut them down and direct customers to use the remaining traditional staffed lanes.

But if the lines for that get bigger, Dollar General employees will temporarily open the former self-checkout lanes and scan items for shoppers.

According to the employee handbook, customers are not allowed to use them independently.

Dollar General has an employee manual explaining that self-checkouts are now closed and customers are not allowed to use them independently. But staff can open them as a ‘line buster register’ to help customers when the stores are busy

Used in this way – with staff operating them – the old self-checkout registers are known as “line buster registers,” the employee handbook explains.

It says: ‘LineBuster checkout assistance is required when there are three or more customers in line at a primary checkout.’

It then explains that staff should operate the cash register as if it were a normal register, interact with the customer throughout the transaction and thank them as they leave.

The cash registers can accept all forms of payment except checks. Cash is fed into a slot and the change is returned.

There is a ‘Customer Frequently Asked Questions’ section in the document so staff can assist with shoppers.

When asked: ‘Why do you insist on helping, don’t you trust me?’ the staff should say: ‘Of course we trust you. We just want to help you and improve our service.’

Dollar General began aggressively rolling out self-checkout kiosks in 2022.

Early next year they were in just over two-thirds of the 20,000 stores. It even tested stores with just the stations.

CEO Todd Vasos said the hasty turnaround in recent months was driven by a desire to reduce rising “shrink,” the retail term for theft.

He said they have been removed from 12,000 stores, meaning only a few hundred still have them.

Vasos provided an update to investors and analysts on May 30, after the retailer announced its earnings figures for the three months to May 3. Sales rose 6 percent to $9.9 billion, but profits fell 26 percent.

He said self-checkouts will only be available “in a limited number of stores, most of which will be higher volume, lower shrinkage locations.”

Self-checkouts were introduced as a way to shorten queues, increase in-store efficiency and reduce headcount – and soared in popularity during the Covid-19 pandemic.

But resistance to self-checkouts is growing, with both shoppers and store staff turning against it.

Customers feel like they are being put to work for free, while store bosses blame them for theft.

Walmart – America’s largest retailer – has completely removed them from at least six stores this year.

Target has done this for at least one store, even after pledging to do so across all of its 2,000 stores in March. At the time, a ten-item limit was introduced to make the lines move faster.

The question and answer section of Dollar General’s employee handbook lists what employees should say when customers ask, “Don’t you trust me?” The staff should say: ‘Of course we trust you. We just want to help you and improve our service.’

Todd Vasos, CEO of Dollar General, said theft was a major reason for closing all of the retailer’s self-checkouts. But he added customers like the extra interaction with the staff

Kroger has also added traditional cash registers to a Texas store where it previously offered only self-checkout machines, The Dallas Morning News reported.

Meanwhile, Costco has begun placing additional staff in its self-checkout areas to monitor shoppers and ensure all items are scanned correctly.

Vasos was asked what Dollar General had seen in its 12,000 stores.

“There’s no question that we’re getting positive customer feedback across the board on the 9,000 and, frankly, on some of the 3,000 that we did in May,” he said.

‘Consumers…love the interaction at the front of the store.’

Dollar General was contacted for comment on Tuesday but did not respond.