The reality has proven more complicated, however. Customers frequently encounter technical glitches, unexpectedly closed kiosks, and frustrating ID checks when purchasing restricted items – pitfalls that mean self–checkouts often fail to live up to the promise of a faster and easier grocery experience.
Stores, meanwhile, have found self-service tills can enable theft, and don’t necessarily reduce staffing needs as confused customers still require employee assistance. In many ways, self–checkouts create the worst of both worlds: congested aisles and malfunctioning machines that frustrate shoppers, paired with continuing labor costs and heightened shrink.
Faced with these challenges, some major retailers including Target and Walmart are reconsidering their self-checkout approach. While the technology is unlikely to disappear completely, we’re entering a new phase as stores look to make changes to benefit both the customer experience and the bottom line. However, in today’s ever-evolving retail landscape, successful reorientation will require not just new checkout strategies but engaged and well-supported frontline staff equipped to adapt.
What went wrong
Customer dissatisfaction is a common thread connecting each company’s reappraisal of self–checkouts – more than two-thirds of shoppers say they’ve experienced technical issues when trying to pay for products – but it would seem that shoplifting concerns are the primary driver of change.
Retailers’ shrink rates, reflecting theft and other inventory losses, have soared as price rises push more cash-strapped consumers to consider exiting with items they haven’t paid for. A couple freebies at the bottom of a shopping bag may not sound like a big deal, but multiplied out across millions of customers, and it’s clear why Dollar General’s Vasos found himself referring to “shrink” a full 37 times on a recent earnings call.
He’s not alone in his preoccupation with theft. Inventory losses cost retailers $112 billion in 2022, with over $41 billion from theft, according to the National Retail Federation. Research from the ECR Retail Loss Group paints a similarly bleak picture: self–checkouts account for 23% of total unknown store losses, with 48% from malicious behavior. With one-in-seven surveyed self-service users admitting that they’ve purposely stolen in the past – and almost half saying they plan to do so again in the future – this isn’t a problem that’s set to get easier for supermarkets.
The path forward
As grocery stores seek to balance customer experience, theft reduction, and labor efficiency, a few key strategies are emerging. Some are shifting self-checkout from a primary to secondary service, or, like Target, redesigning them to focus on speed for shoppers with fewer items. Others are investing in new technologies to reduce theft, like Kroger’s use of AI-powered cameras to catch missed scans and flag suspicious behavior for review.
Many retailers are also adding additional layers of associate interaction to the self-serve experience. In Europe, some stores have introduced employee-monitored exit gates in self-checkout areas that only open when a receipt is scanned, eliminating, in theory, the risk of shoppers leaving ladened with unpaid goods. Back in the US, Costco has started stationing workers to check self-service customer receipts, while Walmart is assigning employees to assist at kiosks directly.
These measures, though disruptive, are necessary – no retailer can withstand surging levels of theft. But the fact remains that a clear majority of customers still prefer using self-checkout when it’s available. Striking the right balance means empowering the greatest resource any store has: its staff.
As the checkout experience evolves, supermarkets will need to upskill and support their workers to adapt. An engaged, well-trained team is essential for resolving tech issues, being vigilant against theft, and keeping traffic flowing in redesigned self-serve configurations. Getting this right requires a willingness to embrace a modern way of working, adopting tools and techniques that boost communication, make continuous (and effective) learning and development a reality, and ensure that no employee feels left behind during periods of change.
The human touch
The self-checkout journey is far from over, but the road ahead looks markedly different than it did just a few years ago. Stores that rapidly expanded the technology in pursuit of cost savings are now taking a more nuanced view, balancing its role alongside traditional checkouts and employee involvement. While self-service may remain the favored option for many customers, retailers’ focus is shifting to experience optimization, theft prevention, and preserving labor savings without sacrificing service.
Ultimately, at a time of economic headwinds and changing consumer expectations, the success of stores lies in their resilience – and that of their employees. With strong support, communication, and training, engaged associates can be the real key to smoother checkouts, in any format. Retail’s most enduring advantage is, after all, its human touch.
