Following the path of other retail chains like Target that are trying to combat the rise of store thefts, discount chain Five Below has decided to scale back its self-checkout stations, opting for cashier-only options at more than 1,500 locations .
In a fourth-quarter 2023 earnings call on Wednesday, CEO Joel Anderson told investors that the “most significant” change the company made during the quarter was to limit self-service checkouts and place a clerk near the checkout. front of the store.
Anderson said the decision to limit self-checkouts was in direct correlation to crime within some stores and that, additionally, the staff stationed there helped make the shopping experience smoother for those entering the store .
Related: Target doubles in traditional checkout lanes
“What we know is that in stores with a higher crime index, shrinkage is greater than in stores with a lower crime index,” he told investors. (Shrink in retail refers to a discrepancy between what a store’s inventory list shows versus the number of products actually available.)
He further explained, “And we know that our self-checkout stores are higher than our non-self-checkout stores. So, the opportunity really lies in immediately strengthening our policies and how we operate in our… stores with automatic cash register with a high crime rate.”
Anderson said the company hopes to make 75% of transactions across the chain with the help of an associate, with the goal of reaching 100% with the help of an associate in the stores with the greatest differences inventories and the highest risks.
Other security measures the company plans to implement against theft include checking receipts when customers leave stores and placing guards around stores.
“We intend to measure progress as early as the second quarter, when we will perform a limited number of store counts,” he said. “While we are confident that these measures will help us over time… we have not included any financial impacts for shrink reduction in our 2024 guidance. Finally, at Five Below, we always play offensively and intend to pursue aggressive return to pre-pandemic levels to reduce or compensate for its impact in the coming years”.
Related: Why Costco has avoided major retail thefts unlike Target, Walmart
The chain joins fellow discount retailer Dollar General in announcing earlier this month that it would remove self-checkout from 300 high-risk stores and offer associate-assisted checkout at another 9,000 stores.
Five Below currently has approximately 20,000 stores across the country.
The retailer was down just over 13% year over year as of Friday afternoon.