New Market Perspective
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

New Market Perspective

Business

Major retailers are backtracking on self-checkout

by admin July 5, 2024
July 5, 2024
Major retailers are backtracking on self-checkout

After years of investing in self-checkout machines, some major retailers are starting to reverse course.

Dollar General said it has eliminated self-checkout options at about 12,000 locations, a majority of its stores, after it began the process in the first quarter this year. Five Below is working to remove self-checkout entirely in some of its “highest-risk” locations. Target also announced steps to limit or eliminate self-checkout options at some stores this year, and Amazon is pulling its “Just Walk Out” cashierless checkout system from its grocery stores.

The U-turns are occurring at retailers that once touted the upsides of fully self-service stores. As recently as 2022, Dollar General described self-checkout technology’s potential to “enhance the convenience proposition, while enabling our associates to dedicate even more time to serving customers.” The company had tried to test stores with 100% self-checkout kiosks in hundreds of its retail locations.

Five Below said it’s removing self-checkout options in locations it considers at high risk for thefts.Angus Mordant / Bloomberg via Getty Images file

The decisions come amid retailers’ ongoing efforts to tamp down on “shrink,” an industry term for all the ways inventory can get lost, including through error or theft by shoppers or employees.

Some of the companies shifting gears on self-checkout have blamed theft for their moves. In March, Five Below CEO Joel Anderson said the most significant change the company made in testing theft mitigation efforts was to replace self-checkout options with employees. Dollar General CEO Todd Vasos said in May that the company’s goal is to restrict self-checkout to high-traffic, low-theft locations.

Still, the industry’s shoplifting complaints have occasionally raised eyebrows, and at least one retail executive admitted last year to overstating shrink concerns.

Shrink at self-checkouts “can be absolutely intentional from bad actors,” said Claire Tassin, a retail and e-commerce analyst at Morning Consult, “or it could be accidental.”

“I know I’m not the only one who has struggled with a self-checkout machine,” she said. In some cases, though, customers may be purposefully “pretending to scan something and just bagging it anyway.”

People are always complaining about the machines’ being difficult to use, or loud, or just challenging in some way.

Morning Consult ANalyst Claire Tassin

According to a LendingTree survey last year, 15% of self-checkout users admitted to stealing while they were using the machines. About 41% of consumers said they almost always use self-checkout when it’s available, but 21% said the option feels like they’re performing “free labor,” and 14% saw it as taking a job from a would-be cashier.

Representatives for Dollar General and Five Below didn’t immediately comment.

Tassin said some retailers may also be looking to improve the customer experience. “People are always complaining about the machines’ being difficult to use or loud or just challenging in some way,” she said.

That’s how Jerome Osei described them recently at a Morton Williams supermarket in New York City. “I have to wait for someone to come in and fix it, and it’s just a waste of time,” he said, opting for the cashier checkout, instead.

Other shoppers there had more favorable views. “Super fast, easy, convenient” was fellow shopper Jessi Clayton’s review. “It’s a great option to have, especially when you’re in a hurry.”

Consumers who’ve fretted about self-checkouts’ impact on jobs might be cheered by the recent rollbacks. Five Below and Dollar General said they’re reinvesting in workers as part of their changes.

“It tells us that it is more profitable for the retailer to pay employees to manage checkout,” Tassin said. “And they’re of course going to be better at it than the average untrained consumer than it is to support the machines, where they’re probably getting less-than-accurate checkouts from consumers.”

But despite the shift back toward human cashiers, she doesn’t expect shoppers to have to pay more. “Retailers know consumers are pretty pressed for prices. So I don’t think this will make a massive, meaningful difference in consumer prices” at the moment, she said.

While some stores are moving away from self-checkout, the option doesn’t look like it’s going away any time soon. An estimated 44% of transactions at grocery stores took place in self-checkout lanes last year, according to the Food Industry Association, up from 29% in 2022.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
UK voters head to polls for a momentous election
next post
July 4 travel hitting a record thanks to lower gas prices, humming economy

Related Posts

UiPath to lay off 10% of workforce in...

July 10, 2024

How the New York Mets can justify paying...

December 11, 2024

Key fed inflation gauge cools to its slowest...

June 29, 2024

Fed Chair Powell says there has been a...

April 17, 2024

Tesla’s robotaxi launch in tech-friendly Austin has Musk...

June 4, 2025

Trump’s massive 46% Vietnam tariffs could hit Nike,...

April 3, 2025

United CEO expresses ‘renewed confidence’ in Boeing after...

August 16, 2024

Inflation and $2,000 camps are creating a summer...

July 25, 2024

Emirates’ chairman has a message for Boeing: ‘Get...

May 8, 2024

Rate cuts before the year’s end could make...

July 12, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Russia’s summer offensive in Ukraine underwhelms – but Kyiv won’t be celebrating

      June 30, 2025
    • Netanyahu says ‘opportunities have opened up’ to free Gaza hostages following Iran operation

      June 30, 2025
    • The last Hong Kong pro-democracy party that held street protests disbands

      June 30, 2025
    • Turkish police detain dozens at banned Istanbul Pride march, lawmaker says

      June 30, 2025
    • Severe heat waves hit southern Europe as local authorities warn against wildfire risks

      June 30, 2025
    • Brazil ex-leader Bolsonaro rallies thousands of supporters to protest his trial over alleged plot to overturn election

      June 30, 2025

    Popular

    • 1

      Top 5 Junior Copper Stocks on the TSXV in 2023

      December 22, 2023
    • 2

      10 Top Oil-producing Countries (Updated 2024)

      October 19, 2024
    • 3

      Top 10 Uranium-producing Countries (Updated 2024)

      April 18, 2024
    • 4

      Powered by rain, this seed carrier could help reforest the most remote areas

      December 19, 2023
    • 5

      A troubling theory about traders profiting from Hamas’ attack on Israel drew much attention. Why it may not be so simple.

      December 13, 2023
    • 6

      Americans are starting to feel better about the economy and inflation

      December 13, 2023
    • 7

      Rare Earths Stocks: 8 Biggest Companies in 2024

      January 12, 2024

    Categories

    • Business (1,388)
    • Investing (3,413)
    • Politics (4,481)
    • World (4,392)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: newmarketperspective.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2025 newmarketperspective.com | All Rights Reserved