Big Retailers Make a U-Turn on Self-Checkout: Here’s Why!

The commercial environment is dynamic, not just due to rapid technological innovations, but also changes in consumer attitudes and behaviors. An example of this pertains to self-checkout systems at major retail stores, a phenomenon that has become increasingly prevalent in recent years. However, against the odds, there’s an intriguing noteworthy shift to observe – major retailers are reversing their steps on self-checkout systems. One of the main reasons for retailers backtracking on self-checkout is the realization that these systems don’t provide the human contact that a significant proportion of customers still desire. Indeed, it has increasingly been discovered that while self-checkout is convenient, it can also be de-personalized and frustrating, particularly for some customers who lack familiarity with the system or encounter difficulties with unscannable items. This can lead to an increasingly negative shopping experience, potentially damaging the customer-retailer relationship and reducing customer loyalty. Aside from the lack of human interaction, self-checkout systems have also been criticized due to an increased risk of shoplifting. According to a study by the University of Leicester, the rate of loss was nearly doubled at self-checkout systems compared to staffed checking-out points. The anonymity of the self-checkout process seems to embolden potential thieves who can absent-mindedly leave out a few items while scanning. The typical deterrent effect of face-to-face interaction with a staff member is lacking here. Moreover, the implementation of self-checkout systems can sometimes lead to a spike in operational costs. These systems are not only expensive to install but also to maintain. While they are meant to reduce labor costs by replacing cashiers, the reality is that they often require a significant presence of workers around the machines to assist customers and manage likely glitches. Interestingly, a number of major retailers have recognized these challenges and are currently shifting emphasis back to traditional checkout points. Albertsons, one of the largest food and drug retailers in the United States, announced in 2018 that they would be removing self-checkout systems in favor of a more personalized service. This decision aims to foster engagement and human interaction, which the company sees as a vital part of the customer shopping experience. Similarly, Big Y, a New England based company, removed self-checkout lanes in 2011, noting that they resulted in more delays than they save. The company opted for express lanes and traditional checkouts, which, according to their observations, foster better customer service and prompter checkouts. However, this backtracking on self-checkout should not underestimate the broader impact of technology in retail. Many observers believe retailers should focus on deploying technology that empowers the human element, rather than replaces it. For instance, the rise of mobile payment technology has given retailers an opportunity to both leverage the benefits of technology and maintain human interaction. Customers can quickly scan and pay for their purchases using their smartphones, while staff members are free to create a positive shopping experience through helpful interactions. This balance ensures that changes ultimately contribute to a better shopping experience. A focus on enhancing, rather than eliminating, human interaction means that technology is leveraged for its strengths—speed, efficiency, and novelty—while still acknowledging the importance of a personal touch in retail. In essence, the backtracking from self-checkout by major retailers represents a conscious decision to put customers first. It is a recognition that technology, at its best, should be a tool and not an impersonal end. By prioritizing customers’ satisfaction and needs, these retailers are adopting a human-centric approach to business that is both noble and strategic—proving that sometimes, the traditional way could still be the best way.