Yet another chain is pulling out of self-checkout.
Dollar General announced plans to completely remove self-checkout stations in 300 locations and has begun converting some or all checkouts in an additional 9,000 stores.
The reasons are twofold. Customers, on a large scale, are tired of having to scan and bag their goods, especially given the numerous errors encountered by the machines. Despite the savings on labor costs thanks to self-checkout machines, companies also see the disadvantages. Grocery chain Booths in the north of England stopped most of its self-checkout services in November, saying employees bagging groceries “provide a better customer experience” than self-checkout kiosks .
And the devices have also led to an increase in shopper thefts, which retailers call “shrinks.” (Home Depot, for example, says that more than $100,000 worth of goods were stolen earlier this year in Florida alone via self-checkout machines.)
According to a November LendingTree survey of 2,000 U.S. consumers, nearly a third (31%) of Gen Z shoppers admitted to shoplifting at self-checkout machines. (Only 15% of shoppers overall admitted to this habit.) Nearly half of Gen Zers (46%) said they plan to steal the most expensive item in their cart, while 37% said they will give up to pay for basic items, such as food. and water.
Dollar General says stores that keep self-checkout registers available will begin limiting transactions to five items or fewer.
“We believe these steps are in line with where the customer wants us to be, which includes increasing personal engagement with them in the store,” CEO Todd Vasos said on an earnings call Thursday. “Additionally, we believe these actions have the potential to have a material, positive impact on shrink as we move into the second half of the year and into 2025.”
According to a survey of retailers by FMI, an industry group, self-checkout use accounted for 30% of transactions in 2021, nearly double the rate in 2018. But as theft and customer complaints increase, retailers are removing them from stores.
Walmart pulled kiosks from three New Mexico locations last fall. Target announced that starting March 17 it will switch to “express self-checkout” at most of its 2,000 U.S. items, limiting the number of items a shopper can self-scan to 10. Target locations piloting the new system reported that self-checkout was “twice as fast” as before, according to the retailer.