American Daddy Trader
  • Politics
  • Business
  • Stock
  • Editor’s Pick
  • Politics
  • Business
  • Stock
  • Editor’s Pick

American Daddy Trader

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

previous post
Technology Shares SOAR to New All-Time Highs
next post
Clothing chain Bob’s Stores closing after 70 years

You may also like

The new class war: A wealth gap between...

April 30, 2024

Longtime Walmart CEO to step down in January

November 18, 2025

Ulta Beauty CEO outlines plans to boost sales...

June 2, 2024

NTSB grills Boeing execs on safety culture and...

August 9, 2024

GM reveals redesigned GMC Terrain as brand’s entry-level...

August 13, 2024

Retirees ‘stunned’ as market turmoil over tariffs shrinks...

April 6, 2025

How Trump could spare Biden’s renewable energy credits...

December 20, 2024

Interest rates will likely start coming down this...

March 7, 2024

The trucking industry hits the brakes with tariffs...

April 24, 2025

Google has eliminated 35% of managers overseeing small...

August 28, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


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

    Recent Posts

    • Key Senator won’t fund DHS as ICE, federal agents enter his state

      January 26, 2026
    • Trump says it ‘is too late’ to stop the White House ballroom construction amid lawsuit

      January 26, 2026
    • Emory fires Iranian official’s daughter after campus protests over controversial hiring decision

      January 26, 2026
    • World Health Organization says US withdrawal makes the nation and the world ‘less safe’

      January 26, 2026
    • Trump’s NATO warning pushes Europe to face the cost of defending itself

      January 26, 2026

    Archives

    • January 2026
    • December 2025
    • November 2025
    • October 2025
    • September 2025
    • August 2025
    • July 2025
    • June 2025
    • May 2025
    • April 2025
    • March 2025
    • February 2025
    • January 2025
    • December 2024
    • November 2024
    • October 2024
    • September 2024
    • August 2024
    • July 2024
    • June 2024
    • May 2024
    • April 2024
    • March 2024
    • February 2024
    • January 2024

    Categories

    • Business
    • Editor's Pick
    • Politics
    • Stock
    • Uncategorized
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 americandaddytrader.com | All Rights Reserved