Is Self-Checkout on the Decline? Understanding the Challenges and Future of Automated Retail

WARMINSTER, PA, May 15, 2024 –

When you’re ready to check out at a grocery store or any retail establishment, the decision between self-service checkout and cashier-assisted lanes isn’t always straightforward. While self-checkouts have become a familiar feature in modern retail settings, there’s a growing trend of both customers and retailers stepping back from this option. Several factors are driving this shift. Customers often find themselves frustrated by long lines and insufficient staffing at self-checkout stations. Meanwhile, retailers have observed a noticeable increase in shoplifting incidents attributed to these self-service lanes. With these growing frustrations and concerns, some larger retailers have gone as far as to remove self-checkout from certain locations.

The Problem with Self-Checkout

Many retailers are grappling with significant challenges, including increased theft rates, frustratingly long lines that can deter shoppers during peak hours, and the high costs associated with expanding these systems to more lanes

Long Lines

No one enjoys waiting in long lines, and self-service checkouts are no exception. It’s a common sight: a queue of customers at self-service checkout, while traditional lanes remain largely underused, hosting only one or two customers. This imbalance often leads to customer complaints and a call for better solutions.

One reason for these delays is the frequent need for manual input at self-checkout lanes, which can result in customer errors. For example, purchasing produce at grocery stores often requires manually entering a code. If the customer accidentally inputs the wrong code, an employee can be required to resolve the error. Additionally, issues such as alcohol purchases or issues with membership cards necessitate employee assistance to verify customers’ ages or to resolve problems. However, with typically just one employee overseeing more than ten self-checkout stations, their availability becomes a bottleneck, significantly slowing down the process.

In response to these challenges, retailers are taking proactive steps to improve the self-service checkout experience. One such strategy limits the use of self-checkout terminals to customers with ten items or fewer. This policy, currently being tested in select stores, aims to streamline the process and reduce wait times, potentially revolutionizing the way we shop. Another tactic, although less effective, is implementing a card-only policy at self-checkout lanes. This approach not only potentially shortens transaction times but also simplifies cash management for employees, who no longer need to handle cash balances at these stations, paving the way for a more efficient and convenient shopping experience.

Theft

The convenience of self-checkout comes with a significant challenge for retailers: theft. It’s an open secret that the ease of bypassing payment at self-checkouts has crossed the minds of many shoppers. Even honest customers might inadvertently leave the store with unpaid items in their carts, only realizing the oversight after they’ve left. Given these accidental occurrences, it’s hardly surprising that self-checkouts are a tempting opportunity for those inclined to steal.

In response to the rampant issue of intentional shoplifting, some retailers are re-evaluating the viability of self-checkout machines. Earlier this past year, for instance, a major retail chain took the drastic step of removing self-checkout stations in specific store locations to curb theft. Additionally, many stores, including some branches of another prominent retailer, have implemented receipt checks at exits to ensure that the items customers are carrying out have been paid for. This retailer has also taken proactive measures by securing frequently shoplifted items, like makeup, and imposing age restrictions in stores with high theft rates.

These actions highlight a growing debate among retailers about the future of self-checkouts. As shoplifting continues to be a significant problem, the industry is forced to weigh the benefits of customer convenience against the risks and losses associated with theft.

High Cost of Conversion

Another challenge retailers face with self-checkout machines is the inefficient use of space once occupied by traditional checkout stations. In many large retail stores, shoppers encounter two self-checkout areas at opposite ends, surrounded by a row of about twenty traditional checkout stations that are mostly closed. This layout allows a single employee to manage multiple self-service kiosks, which is particularly advantageous when labor is scarce. However, the ideal solution to maximize retail space and reduce wait times would involve replacing the unmanned checkout lanes with more self-checkout lanes. Unfortunately, this solution comes with significant costs and is not widely implemented to maximize cost savings.

As a result, customers often find themselves navigating through a seemingly endless row of self- checkout machine lanes with zero human cashiers. They are left with the choice of enduring long lines at the self-checkout or opting for one of the few manned stations requiring waiting behind other customers. This underutilization of space and resources highlights the need for a more strategic approach to checkout area design, balancing cost, convenience, and customer experience.

Enhancing Self-Checkout Efficiency and Security with Havis Solutions

Efficiency

Long lines at self-service checkout lanes are a common frustration for customers, and at Havis, we’re committed to maximizing the efficiency of the self-checkout process. Our ergonomic mounts are designed to streamline the operation of checkout stations, making them as user-friendly as possible for all customers. By positioning all technology at the optimal height and keeping the area free from cables and clutter, customers can effortlessly navigate the self-checkout process without the need to hunt for card slots or receipt printers. Moreover, our mounts provide a secure connection for all devices, ensuring that technical issues do not cause unnecessary delays, thus enhancing the overall customer experience at self-checkouts.