If you’ve shopped anywhere in the past year, you may have noticed an increase in self-checkout machines at stores like Target, Walmart, and Dollar General. In fact, statistical analysis by GM Insights shows that the self-checkout industry is expected to increase his net worth to $6.5 billion by 2027.
This is quite increase in value This stems from positive consumer response to big-box stores experimenting with non-traditional checkout solutions. Unfortunately, reliance on technology can lead to an increase in theft, especially at self-checkout locations.
Rising losses are causing stores to reconsider their stance on self-checkout, with some even considering a return to employee-driven loss prevention.
difficult change of direction
At many big-box stores, public opinion about self-checkout and the customer experience is slowly changing. said Dwayne Kellett, owner of Canadian Tire in North Bay, Ont. [either]. I’d rather customers see the cashier and at least have someone they can talk to if they have questions or concerns. ”
Kellett removed the store’s self-checkout registers in July 2023 and replaced them with cash registers. Quelette isn’t the only store to eliminate self-checkout. Booth Supermarkets in the U.K. will temporarily suspend self-checkout at 25 of its 27 stores, and three Walmart stores in Albuquerque, New Mexico, will also end their self-checkout program for an in-person checkout experience.
psychology of theft
This change in checkout strategy has as much to do with the customer’s personal preferences as it does with the retailer’s revenue loss. Unsurprisingly, customers are vocal about their methods. it’s easy to steal At the self-checkout. According to a study by Lending Tree, 15% of consumers have intentionally stolen items from a self-checkout, 33% were caught by a store employee, and 44% said they plan to steal again.
The idea that self-checkout makes it easier for theft is not helping managers address loss prevention in their stores. Scenarios like this are why some large chain stores are considering unusual strategies to curb theft.
controlled experiment
With a focus on balancing customer experience and loss prevention, some large chain stores are allowing managers to experiment with self-checkout systems. Various methods have been implemented at the discretion of management to curb theft during the self-checkout process.
Customers, The entire self-checkout area is cordoned off. You may also need help from your employees to purchase “everyday necessities” such as laundry detergent or tissue paper. These experiments may be overkill, but they can help business owners find a balance between a positive shopping experience and reducing theft.
AI problems are plentiful
As artificial intelligence is introduced into many aspects of society, a complete AI revolution in store checkout may not be far away, especially since some aspects of the process are already automated. For many customers, the benefits of self-checkout do not outweigh the downsides of automated checkout systems.
For example, seeing a message on the screen that says “Unexpected item in the bagging area” while locking the checkout creates frustration and impatience. A slow employee response adds to the inconvenience of having to wait for someone to unlock the machine and help you. This begs the question, “Why should I go to that person in the first place?”
Even considering the slow process of finding and weighing perishables at the self-checkout, the efficiency of these self-service machines is questionable.
Big Brother, Lost Prevention, or something else?
Self-checkout was first introduced in 1986 and reached its peak in the mid-2000s. Since their heyday, retailers have struggled to prevent losses while keeping customers happy. Many stores, including Walmart and Costco, have introduced receipt checkpoints that require customers to stop and check their receipt before leaving with their package.
Food industry analyst Phil Lempert said: Self-checkout model not working Most customers think so and agree with their criticisms, saying: It’s a scary experience – you’re bound to make mistakes. ” If those “mistakes” were made by machines or cost retailers for theft and lawsuitsthey start considering alternative options.
Lempert believes that systems that capture payment information when you enter a store and charge your account when you leave the store will eventually replace today’s self-checkout systems. Either way, the self-checkout trend’s days are numbered.
