Retailers including
These changes could prompt consumers to alter the way they use payment cards, even if the changes are subtle. Target, for example, is constraining some self-checkouts to 10 items or fewer, thus limiting ticket sizes from shoppers who prefer this checkout method.
A shift back to cashier-assisted checkout could suggest a shift back to cash, since some self-checkout lanes limit customers to using debit or credit cards only — but this likely isn't enough to offset the momentum of digital payments, experts say.
The social pressure of facing a cashier may even encourage shoppers to favor the speed and convenience of cards, according to Sheridan Trent, director of market intelligence at Omaha, Nebraska-based consultancy TSG. "Sometimes with a person waiting, it's more appealing to use the quickest choice to avoid holding up a line," she said.
Ultimately, retailers are looking to address self-checkout's pain points, such as shrinkage, by either moving some traffic away from that method or deploying AI and other new technologies. In many cases, retailers aren't giving up on the concept, but rather giving in to customer needs.
Technologies such as AI are likely to "greatly simplify the customer's journey," making the self-checkout process easier for consumers, Christian Haeger, head of retail for CGI's operations in Stockholm, Sweden, said in an email.
"While we are seeing some retailers shift their approach to self-checkout due to shrinkage brought on by inflation, it really comes down to consumers wanting to have a say in how they checkout," he said. "For instance, those with large shopping carts who prefer personalized assistance may lean toward manual check-out services, whereas those with smaller baskets are better served via self-checkout."
Shifting patterns of payment
While some customers love self-checkout, ease and usability depend largely on the machine. Theft is also a concern for retailers, many of whom are trying to limit potential losses by lowering the number of permissible checkout items.
TSG's Trent says she doubts self-checkout will fade away entirely, but rather it will continue to be scaled back in certain locations. More retailers may decide to offer it only to shoppers wishing to buy a few items.
Why Is Walmart Stopping Self-Checkout?
In Walmart's case, the retailing giant has been paring back self-checkout at select locations during the past year, including recent stores in Shrewsbury, Missouri, and Cleveland. These moves are being made based on feedback from employees and customers, shopping patterns and existing business needs, according to a spokesperson. Walmart first introduced self-checkout in the late 1990's, and the spokesperson said the option is offered in almost all Walmart stores and Sam's Clubs.
Target, meanwhile, has been rolling out express self-checkout with limits of 10 items or fewer at most of its nearly 2,000 stores nationwide. This is a change from during the pandemic when shoppers could use self-checkout for all their purchases. The company said it began testing the express self-checkout option last fall in 200 stores. Having the option to choose which lane type best served their needs led to a better checkout experience, customers told the company, according to a
Dollar General, for its part, is converting some or all self-checkout registers to assisted-checkout options in approximately 9,000 stores, according to remarks made by chief executive Todd Vasos on the
For retailers that are paring back self-checkout, it makes sense to do it gradually, Trent said. They need to ensure they have enough staff to handle the customer traffic and customers also need time to adjust. Otherwise, the change could cause frustration if shoppers are used to 10 self-checkout stations and all of a sudden there are none, she said. Better to go from 10 to eight and then reduce again, if desired, to six a few months later, Trent said.
AI on the horizon
Haeger offers the example of new self-scanning technology that can more easily identify product categories and quantities, which is a frequent pain point for consumers. Additionally, scanners are becoming increasingly digitized. New technology allows consumers to prepare a shopping list at home and input the list into the store's scanners, sorted in order of how the products are displayed in the store, he said.
"These scanners can even suggest substitutions for out-of-stock items. Retailers can also suggest items to the customer based on similar items already on the list, such as pasta sauce to complement pasta, resulting in a win-win for shoppers and stores alike," he said.
The Amazon Go model of walk-out shopping could also gain popularity. With Amazon Go, shoppers use the Amazon app, a credit card, or Amazon One at select locations to shop quickly without scanning any items or waiting in a checkout line.
Sainsbury's, which offers customers the option of using serviced tills and self-serve checkouts, also continues to make improvements to its scan-as-you-go SmartShop system. The retailer is working with NCR to add AI to its SmartShop system to help cut down on potential losses due to shoplifting or other forms of shrinkage, said Clodagh Moriarty, chief retail and technology officer for Sainsbury's, in a
"Being able to deploy AI in the way that we are talking about … will stop us rescanning customers who we now have a much higher confidence [that] we don't need to rescan," Moriarty said. "The benefit there is that you improve that customer experience for everyone whilst improving the overall safety and security."
Additional points for retailers to consider
Going forward, retailers should focus on the customer experience and not cost when implementing self-checkout, Haeger said, as cost savings will come with time.
Additionally, retailers need to recognize that while self-checkout systems offer convenience, human support is crucial during the transition. This is especially true since customers often have questions about canceling items or using coupons or loyalty cards, Haeger said.
"Offering both self-checkout and traditional options balances quick service with personalized assistance — letting consumers choose which is right for them. Ultimately, it's about enhancing the customer journey and ensuring a seamless experience for all," Haeger said.
