‘Unexpected item’: how self-checkouts failed to live up to their promise (2024)

When the first self-checkout kiosks were rolled out in American stores more than three decades ago, they were presented as technology that could help stores cut costs, save customers time, and even prevent theft.

Businesses still fret over these issues, and against a tight labor market, more companies are making self-checkouts the norm. But the machines failed to live up to their promises. This week, Walmart’s CEO said that thefts “are higher than what they’ve historically been”, which many staff and customers link to self-checkouts. On top of that, the machines have made things harder for the workers who they were supposed to replace.

That includes 25-year-old James, head cashier at a large Washington state store, where he’s worked for four years. He says running the self-checkout has become one of the most tiring parts of his job, which pays just a little more than minimum wage.

Customers often take out their frustrations on him. “This should be your f*cking job, not mine,” he recalls a man snapping at him recently. “I said, ‘Sir, no one’s forcing you to come to self-checkout. If you want a cashier you can go to register three.’”

James is required to surveil an uninterrupted stream of up to four customers at once – “like a shark with blood in the water” – as they struggle with the scanner and touchscreen, and sometimes try to shoplift. “You’re confined to that little place, and you’re pretty much standing in one spot for up to eight hours a day, which just kills your feet. And having to deal with so many people just drains your mental battery,” he says.

In 2018, just 18% of all grocery store transactions went through a self-checkout, rising to 30% last year. Walmart, Kroger, Dollar General, and Albertson’s are now among retail chains testing out full self-checkout stores.

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That’s not something we should get excited about, says Christopher Andrews, a sociologist who examined the kiosks in his 2018 book, The Overworked Consumer: Self-Checkouts, Supermarkets, and the Do-It-Yourself Economy. Despite what grocery stores and kiosk manufacturers claim, research shows self-checkouts aren’t actually any faster than a regular checkout line, Andrews says. “It only feels like it because your time is occupied doing tasks, rather than paying attention to each second ticking away.”

Neither have they reduced the need for workers: despite the increase in self-checkouts, Bureau of Labor Statistics data shows the number of cashiers employed in the US has remained virtually the same over the last 10 years. And any reduction in low-wage workers has been offset by the need to pay technicians to maintain the kiosks, Andrews says – and the kiosks can cost as much as $150,000 for a single row.

So if self-checkouts are so ineffective, why do we have them at all?

The self-service policies of modern supermarkets have largely been “imposed by the companies, not because of customers asking for it”, says Andrews. Before the 20th century, shoppers typically purchased goods directly from clerks standing behind counters. That changed in 1916, when Clarence Saunders opened the first modern supermarket: a Piggly Wiggly in Memphis, Tennessee where customers were asked to take items off of the shelves themselves – and received a discount for doing so.

In 1986, a handful of Kroger stores installed the first self-checkout machines, which cost $5m to develop. The contraptions, called CheckRobots, required customers to scan items and place them on a conveyor belt before a human employee bagged them on the other end. Donald Dufek, a Kroger vice-president, admitted that the system was actually slower than traditional checkouts. But “if the customer feels and thinks this checkout method is faster, they’re satisfied with getting out the store faster”, he told reporters at the time.

‘Unexpected item’: how self-checkouts failed to live up to their promise (1)

Andrews says his research has found that the majority of people don’t actually want self-checkouts. The real reason stores use them, he says, is because their competitors do. “It’s not working great for anybody, but everybody feels like they have to have it. The companies think: ‘If we can just convince more people to do this, maybe we can start to reduce some overhead.’”

Meanwhile, self-checkouts have become a prime target for fraudsters, who use a variety of tactics to beat anti-theft measures. Weight sensors can be defeated by ringing up expensive items – like king crab legs – as cheap items like apples. James, the cashier in Washington, says he saw a customer trying to buy a $1,600 grill for $5 by hiding one item inside another and switching the barcodes.

That has led to an arms race of sorts as some retailers have responded with increasingly strong measures. Walmart is known for aggressively prosecuting shoplifters and has installed AI-powered cameras near its self-checkout areas with a “missed scan detection” feature. “It turns what’s supposed to be a leisurely activity of shopping into a quasi-TSA, airport-style security check,” says Andrews.

Measures like these have drawn scorn from labor advocates. Marc Perrone, the president of the United Food and Commercial Workers International Union, which represents more than 1 million retail workers, says “a well-staffed store with well-trained employees who check out customers is the easy and smart solution”.

Instead, Perrone says, retailers like Walmart have increasingly sought to use self-checkouts to cut jobs and increase profits.

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A Walmart spokesperson, Charles Crowson, declined to comment on the company’s self-checkouts but said the retailer was “continually exploring effective ways to protect merchandise, keep prices low and provide a safe environment for the millions of customers we serve weekly”.

The kiosks pose problems beyond theft. Self-checkouts are often inaccessible for people with limited vision or wheelchair users, who complain they are forced to flag down a cashier every time they use the computerized kiosks. The National Federation of the Blind sued Walmart in 2018 for violating the Americans with Disabilities Act by “excluding blind people from using the service in the way that it was intended – independently and privately”, though a federal judge ruled in Walmart’s favor last year.

The checkout screens could also be a threat to your health, according to a recent study by the UK-based Infection Innovation Consortium that took samples from a selection of everyday objects. “The self-checkout samples had one of the highest bacterial loads, as we found five different types of potential disease-causing bacteria surviving on them,” said the lead researcher, Dr. Adam Roberts, in a statement. “This included Enterococcus, which is found in human feces and, while this is usually harmless, it can of course lead to disease, particularly in those who may have weakened immune systems.”

Could we ever see a world without self-checkouts? Yes, if customers refuse. “Businesses are looking for creative ways to cut labor costs, and if they can figure out how to convince customers to do more of the work, they’ll do it,” says Andrews. “I tell people to vote with your pocketbook. I went to my local supermarket the other night after work and filled up my cart. The staff said to go to self-checkout – and I just walked away. Because my thinking was, ‘I’m not going to sit here and scan 60 items. It’s just not worth my time.’”

‘Unexpected item’: how self-checkouts failed to live up to their promise (2024)

FAQs

What are common problems with self-checkout? ›

Self-Service Checkout Cons
  • Increased Risk of Theft.
  • High Up-Front Costs.
  • Less Human Contact.
  • Customer Confusion and Equipment Issues.
Mar 14, 2023

Has self-checkout increased theft? ›

The retail industry is no stranger to theft, and self-checkout systems have only exacerbated the problem. According to a report by RMI, self-checkout theft is five times more likely than traditional cashier checkout theft. Retailers experience a 50% higher rate of loss when using these systems as well.

How does Walmart catch self-checkout shoplifters? ›

The staffer, known as Cam, showed off his handheld device that lets workers pause machines when they have suspicions. Walmart stores have dozens of security cameras that can help bosses monitor shoppers' movements.

Are self-checkouts here to stay? ›

Self-checkouts are here to stay and can deliver considerable benefits to retailers and shoppers alike – but retailers mustn't leave cash buyers behind in the pursuit of progress.

Why do people avoid self-checkout? ›

The machines are expensive to install, often break down and can lead to customers purchasing fewer items. Stores also incur higher losses and more shoplifting at self-checkouts than at traditional checkout lanes with human cashiers.

Why are so many stores going to self-checkout? ›

Rather than needing to cut labor costs, the bigger issue in retail is the labor shortage; this is where self-checkout creates even more flexibility. With face-to-face interactions still valued by consumers, self-checkout allows businesses to allocate labor to other parts of the business, including customer relations.

Do self checkouts cause job loss? ›

The omission of human interaction is also something many people are understandably wary of. The idea that people are losing their jobs because of self-checkout, however, is not necessarily true. While it has happened, most people who are replaced by self-checkout are offered a similar position instead.

What is the banana trick at Walmart checkout? ›

So when you check out, you choose a self-scan lane and instead of scanning the porterhouse barcode, you enter the produce code for bananas, weigh your steak on the scanner, then slip it in your bag for a very lucrative, very illegal deal on dinner.

What is the banana trick at self-checkout? ›

What other shoplifting techniques are common in self-checkout? The Banana Trick: Customers scan a low-priced item while placing a more expensive item on the scale or in their bags. This takes advantage of the machine's lack of knowledge about the actual items being scanned.

Will Walmart chase you if you steal? ›

Shoplifting at Walmart

When you are caught, you will be approached by Loss Prevention Agents. They are not allowed to touch you or prevent you from leaving the store. They are also not allowed to chase you. However, they are told to call the police.

Does Walmart not care if you steal? ›

If you are stealing and caught, you have a chance to be banned from the store. In some cases, you will be banned for a day and other cases you can be banned for life. While Walmart is a large chain store, you are likely going to be able to enter another Walmart without a problem.

Can you get caught stealing from Walmart after you leave? ›

Even if you successfully shoplift and exit the store without being caught, you can still be arrested. When there is missing inventory or if something distinctive is gone from the shelves, businesses may review security footage.

What store is stopping self-checkout? ›

Wegmans, the East Coast supermarket chain, said Monday that it would stop using its self-checkout app until the system could be improved because its stores were experiencing losses.

What store stopped self-checkout? ›

Citing losses, the supermarket chain Wegmans announced that it had halted the use of its self-checkout app in which customers scanned their groceries as they shopped.

What is the future of self-checkout? ›

Self-Checkouts are not new to the retail sector, and decades of innovation and implementation of technology has seen the usage increase year on year. In 2021 the industry saw a significant 11% growth, and yet this is low compared to the forecasted 13.3% compound annual growth rate predicted through to 2030[1].

Who benefits from self-checkout? ›

Customers enjoy the convenience of being able to shop without waiting in line, which leads to better customer satisfaction levels. In addition, self-checkouts are intuitive and easy to use, making them perfect for those who want a quick and hassle-free shopping experience.

Is Walmart getting rid of cashiers? ›

According to Walmart, the retail behemoth will be going fully self-checkout and/or “Scan & Go” by the end of 2021.

What percent of people prefer self-checkout? ›

What percentage of shoppers prefer using self-checkout over traditional cashier-assisted checkout? Approximately 73% of shoppers prefer using self-checkout.

Why Walmart is pushing self-checkout? ›

Walmart rolled out self-checkout to streamline operations and reduce labor needs — but employees and customers say it's causing a surge in theft. Walmart CEO Doug McMillon said stores could close if the rising tide of theft wasn't stemmed.

Why are grocery stores getting rid of cashiers? ›

Eliminating cashiers is really about rationalizing store labor; those jobs won't likely be reassigned elsewhere in stores. This major variable expense, when cut, goes right to bottom line improvement. A grocery store typically budgets about 12-15% of their sales for labor, and lower for mass merchants and discounters.

Will cashiers become obsolete? ›

Cashiers

With more than 3.3 million people working in this capacity, the job of cashier isn't going to disappear anytime soon. However, the number of people with this job is projected to drop by 10% through 2031, according to the U.S. Bureau of Labor Statistics. Automation is a big reason for the projected decline.

What technology is replacing cashiers? ›

Retailers and restaurants are looking to robots and other technology to keep up with demand in a tight labor market and to better adapt to buying habits. Sam's Club uses robots to scrub store floors and scan inventory and cupcake chain Sprinkles has replaced traditional cashiers with self-checkout kiosks.

Do stores save money with self-checkout? ›

One of the biggest benefits of self-checkout kiosks is that they save you money on labor costs. With a self-checkout option, one cashier can oversee six transactions at once. You don't need as many cashiers to fully staff your checkout lanes — but you don't have to sacrifice efficient customer service, either.

Why is there a dash in Walmart? ›

"The name 'Walmart,' expressed as one word and without punctuation, is a trademark of the company and is used analogously to describe the company and its stores.

Can the Walmart employees see what you scan at self-checkout? ›

The former Walmart employee said the point of her video is to teach people not to even try stealing from the self-checkout kiosks. She said: “They can see everything that you're purchasing, everything that you're scanning. “You will get caught and they will pause a transaction on you.”

How does Walmart catch thieves? ›

But earlier this year, Walmart (WMT) showed how times have changed. It tested a system that scanned the face of everyone entering several of its stores, identified suspected shoplifters, and instantly alerted store security on their mobile devices.

Do grocery stores make money on bananas? ›

Stores can make bananas a profit-worthy product by touting value and other attributes. “In the past, bananas have been considered a loss leader, but that is changing,” says Anthony Serafino, executive vice president at Exp Group in North Bergen, NJ. “Stores can make money on bananas.”

Why are bananas wet in the supermarket? ›

This liner is punctured during ripening to allow ethylene gas to progress ripening from green to yellow. In cool weather, the warm bananas continue to respire (and exude moisture) in the bag and condensation forms on the fruit when the liner is opened in the supermarket.

How do you cut a banana trick? ›

Push the needle in the banana at a well-concealed spot and wiggle it up and down inside the banana. This will create a cut across the banana. Keep the hole as small as possible where the needle is inserted. Repeat the process down the side of the banana to create as many slices as you'd like.

What is the code for shoplifting at Walmart? ›

Code 20 - dry spill. Code 50 - shopping carts are needed from the parking lot. Code 1 - shoplifter. Code C - customer needs assistance.

Can Walmart legally detain you? ›

Walmart store employees can only detain someone in-store: if there is reasonable suspicion they stole something. until the police arrive (a reasonable amount of time)

Does Walmart have facial recognition? ›

In 2021, The Verge reported that Walmart had employed facial recognition software and a special AI to detect unscanned items in the self-checkout lane. As of 2019, this AI detection software is used in over 1,000 stores, per Insider.

Can I sue Walmart for accusing me of stealing? ›

You may have a claim for false imprisonment and defamation against Walmart if you can prove that the store detained you and made false accusations of theft without a reasonable belief that you were actually committing a crime.

Can Walmart prosecute you for item less than $50 dollars? ›

What happens if you get caught shoplifting at Walmart? Per their company policy, Walmart will not detain or press charges against someone who is caught shoplifting less than $25 worth of goods. Instead, they'll urge you to leave the item with them.

Are Walmart cameras monitored? ›

Yes. It's a high theft area and cameras are usually focused on the area outside (but not in) the fitting rooms. Who watches the security cameras at Walmart? Any manager and mainly AP associates.

Why can't employees stop shoplifters? ›

A representative for a food worker union in Washington said most of the employees they represent are told to not stop shoplifters. The reason is simple, there's the chance of injury to the employee, the thief, and other shoppers. That can also lead to lawsuits.

What does Walmart do to first time shoplifters? ›

Due to the extensive surveillance at the Wal-Mart stores, if you attempt to steal merchandise, it is very likely that you will be caught and detained by a Wal-Mart loss prevention officer or sometimes a police officer working an extra shift at Wal-Mart.

Will Walmart hire you back if you stole? ›

11 answers

No the company will not rehired you.

Is self-checkout risky? ›

The most notorious issue with self-checkouts is an increased risk of theft. This is specific to retail stores and has become a problem in large grocery stores and general merchandise retailers like Target and Walmart.

How much is self-checkout theft? ›

That's what happens when retailers add self-checkout. "Theft accounts for nearly 4% of inventory for retailers with self-checkout, compared to just 1.5% for traditional checkout," according to a report from the U.K.'s University of Leicester.

Does Target use self-checkout? ›

Now available in most Target stores, our updated self-checkout experience includes the ability to find produce by categories with accompanying emojis (a heart for popular items, a carrot for vegetables, a cry-face emoji for onions and so much more!) to help streamline the process and save guests time.

Why did Walmart get rid of scan-and-go? ›

In 2018 Walmart announced it was suspending its Scan & Go effort due to poor feedback and low customer participation. It was a long and expensive experiment for the world's largest retailer.

What happens if you forget to scan an item at self-checkout? ›

Store employees might interpret a customer's honest mistake as an attempt to steal property. As a result, someone who accidentally forgot to scan an item could end up facing arrest for shoplifting. In some cases, especially those involving repeated thefts, shoplifters may receive felony charges.

Why do people refuse to use self-checkout? ›

The machines are expensive to install, often break down and can lead to customers purchasing fewer items. Stores also incur higher losses and more shoplifting at self-checkouts than at traditional checkout lanes with human cashiers.

What is one disadvantage of using a supermarket using self service checkouts? ›

Theft risk

The most notorious issue with self-checkouts is an increased risk of theft. This is specific to retail stores and has become a problem in large grocery stores and general merchandise retailers like Target and Walmart.

What is the advantage and disadvantage of auto checkout? ›

Since self-checkout is typically faster than registers, there is typically one queue per several checkout counters, which saves additional space. However, compared to other self-checkout options, counters are at a disadvantage – they are one of the least optimal options when it comes to cost of space.

Why is self-checkout a legal risk? ›

"If you somehow didn't scan something appropriately or the machine didn't pick it up accidentally when you scanned it, you could potentially be charged with misdemeanor larceny or felony larceny, depending on how big the item was," Granados warned.

What is the self-checkout trick? ›

The so-called “banana trick” is a technique used to steal in self-pay that involves charging an expensive item like shrimp, which sells for more than $20, at the price of an inexpensive item like a banana, which averages around $0.49 per pound.

What are the disadvantages of self-service kiosks? ›

Explore nine common disadvantages of self-service options.
  • Confusing navigation. Self-service platforms should be simple and intuitive to navigate across channels. ...
  • Lack of attention. ...
  • Inflexibility. ...
  • Doesn't incorporate feedback. ...
  • Constrains users. ...
  • Creates extra work. ...
  • Lacks human interaction. ...
  • Makes personalization difficult.
Aug 30, 2022

What is the disadvantage of self kiosk? ›

Lack of understanding:

The most obvious disadvantage of using a self service kiosk is if a customer does not understand how to use the kiosk. The benefit of you not having a staff for the kiosk will be for naught as your staff will need to guide the customer to avoid a negative review.

Do customers like self-checkout? ›

Customer preference for self checkout systems is based on speed, privacy when paying, and seamless customer experience. In addition to this, customers tend to feel in control of their shopping experience when using self-checkout compared to standing in line with a store clerk.

Why do customers like self-checkout? ›

Customers like it

Likewise, the NCR states that the main reason customers like self-checkout is the convenience. Other reasons include faster checkouts, privacy, control over their purchase, and not having to chat with their cashier. For many customers, checking out their own products is ideal.

Do self-checkouts cause job loss? ›

The omission of human interaction is also something many people are understandably wary of. The idea that people are losing their jobs because of self-checkout, however, is not necessarily true. While it has happened, most people who are replaced by self-checkout are offered a similar position instead.

What to do if a cashier forgets to ring up an item? ›

A cashier might forget to scan an item that was sitting in front of them on a table but out of sight behind the register. They may think an item scanned, but it might not appear on the receipt. In all of these cases, the right thing to do, if you catch the error, is to let the cashier know.

Why are there cameras at self-checkout? ›

The cameras are purely there for us to spot theft/fraud and if anyone had put money in the till and either the till had not recognised the money so then we can either confirm or deny if that money had gone in the till.

What is the banana trick in shoplifting? ›

This new software would make it much more difficult to do the "banana trick." What is the "banana trick?" It is when a shoplifter replaces the UPC for a lower price item and scans that instead of the higher priced item.

What is Walmart's shoplifting policy 2023? ›

Walmart has a policy that you won't be detained or charged if you steal less than $25 worth of merchandise. You'll be encouraged to leave the item with them instead.

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