What's in store for the future of self checkouts? How retailers are pulling back.
Self-checkout lanes at grocery stores and retail outlets are sometimes a controversial topic. Shoppers either love the convenience or hate that they have to do the work they feel an employee should be doing.
Some retailers have begun limiting their use or eliminating them altogether, citing higher rates of theft or what's called "shrink" in the industry.
So what's the future of self-checkouts? Are they here to stay, is different technology on the horizon, or will retailers return to all-cashier checkouts?
"Self-checkouts are not going away, but their role is evolving," Santiago Gallino, an associate professor of marketing and of operations, information and decisions at the Wharton School of the University of Pennsylvania, told Paste BN.
Self-checkouts can be a tool for theft
Though self-checkouts offer convenience to shoppers and require fewer cashiers at registers, they can also be a source of shoplifting. According to a November 2023 LendingTree survey of 2,000 U.S. consumers, 15% of self-checkout users have purposely stolen an item − and 44% of self-checkout thieves plan to do it again.
In a 2022 report, “Global Study on Self-Checkout,” two-thirds (66%) of the 93 retailers in the survey (29 were from North America) said they thought self-checkout losses were becoming more of a problem in their businesses.
And the National Retail Federation said in a report in December 2024 that retailers reported a 93% increase in the average number of shoplifting incidents a year in 2023 versus 2019 and a 90% increase in dollar loss from shoplifting over the same time period.
"Self-checkout provides consumers with the convenience of quick shopping. As with other purchasing options, retailers must consider various factors to ensure the benefits are maximized for both consumers and themselves," David Johnston, NRF vice president of asset protection and retail operations, told Paste BN.
Added Neil Saunders, a retail analyst at the research and analytics firm GlobalData: "I don’t think self-checkouts are going to disappear, but many retailers have cooled on them over the past couple of years and have put more restrictions around their use."
Target self-checkouts limited to 10 items or less
Self-checkout usage has been in the news lately after reports that Target was limiting its self-checkout to 10 items or less. But a Target spokesperson said the retailer changed its policy to limit use of its self-checkout lanes in March 2024 and said inaccuracies in some media reports made it seem as if there were a new policy.
"Target is not removing self-checkout. We offer it in the vast majority of our stores and have no plans to change this," a spokesperson said.
"Since the changes in March 2024, we’ve improved total transaction times by 8% and our already high score for wait times by 5 points based on the Net Promoter Score (NPS) for checkout − a measure of customer experience," a Target spokesperson said. The updates deliver "a faster, easier, and more efficient checkout experience."
But shoppers on social media haven't been happy with the 10-item Target policy, complaining that there are times when the self-checkout lanes are empty – or used by people with more than 10 items – while the cashier lanes are backed up.
Target's self checkout policy change was put in place to reduce theft and losses from genuine customer errors, Saunders said. But it has caused frustration for shoppers, he said.
"The problem is that it has put more pressure on manned checkouts and Target has not uniformly increased capacity, which can lead to longer wait times," he said. "The policy also isn’t routinely enforced, and a lot of staff just ignore customers checking out more items − this can create some annoyance with other customers."
Some retailers are significantly reducing self-checkouts
Some retailers have significantly reduced the use of self-checkouts at their stores.
In an earnings call in March 2024, Dollar General CEO Todd Vasos said the retailer was beginning to convert some or all of its 9,000 stores' self-checkout registers to associate-assisted stations. Dollar General also was reducing self-checkout registers to allow five items or less and removing self-checkouts at its 300 stores with the highest theft rates.
"Collectively, we believe these steps are in line with where the customer wants us to be, which includes increasing personal engagement with them at the store. Additionally, we believe these actions have the potential to have a material and positive impact on shrink," Vasos said on the call.
Dollar General did not respond to an inquiry on any updates to its self-checkout policies or practices.
The CEO for retailer Five Below also said in March 2024 that it would be similarly pulling back on self-checkouts and had moved to shopper-assisted checkout at all stores, where a customer can scan items but a cashier finishes the transaction. Five Below also did not respond to a media inquiry.
What is happening at Walmart self-checkouts?
Walmart has removed self-checkout machines in some locations, including in Shrewsbury, Missouri, and Cleveland.
In 2024, Walmart was testing its self-checkout lane use and in some cases limiting use of the lanes, reserving some for Walmart+ members and drivers for its Spark delivery service, according to a report from the news site Business Insider, Paste BN reported. A Walmart spokesperson confirmed that some self-checkout machines had been removed from some stores and that the retailer was still using some lanes for Walmart+ and Spark services.
In a statement provided to Paste BN, a Walmart spokesperson said “there are no current plans for self-checkout removals nationwide."
"We look for ways to innovate in our stores, including the checkout experience. These decisions are based on several factors, including feedback from associates and customers, shopping patterns and business needs in the area," Walmart said.
What is happening to self-checkouts at Sam's Club?
Sam's Club has a Scan & Go system installed in all of its warehouse stores, which allows shoppers to scan their items in an app to avoid a self-checkout or traditional cashier lane. Sam's Club introduced its exit technology, which allows shoppers to pay for their cart of scanned items and uses AI technology to check the items in the cart before an employee verifies the transaction as the shopper walks out.
A Sam's Club spokesperson did not address self-checkouts specifically but sent a statement to Paste BN.
"As we continue to revitalize our fleet, we’re testing and learning to ensure we’re delivering solutions that meet the needs of our members," the spokesperson said. "We provide flexibility and options for how members choose to pay, and our associates are there to assist and help members new to tools like Scan & Go."
Pros and cons of self-checkout for retailers, shoppers
There's pros and cons for retailers and shoppers alike with self-checkout options, the Wharton School's Gallino said. For retailers, it provides cost savings in reduced staffing and can help get shoppers through checkout lanes during peak times.
The downside is self-checkouts have been linked to higher theft, and managing them still requires labor and supervision, he said.
"For consumers, they offer speed and autonomy (when everything works). But when issues arise, like item scan errors or age-verification delays, customers can get frustrated quickly. Self-checkout works best for small, quick trips, not large basket sizes," Gallino said.
Retailers are recalibrating self-checkout use rather than retreating, he said.
"Retailers are learning that while self-checkout can offer operational efficiencies, it also introduces trade-offs," he said. ""The result is not a full reversal, but a more nuanced approach where self-checkout is used strategically."
Betty Lin-Fisher is a consumer reporter for Paste BN. Reach her at blinfisher@USATODAY.com or follow her on X, Facebook or Instagram @blinfisher and @blinfisher.bsky.social on Bluesky. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.