For a while, stores were installing self-checkout lanes everywhere. Now many retailers are pulling back on self-checkout options amid an increase in shoplifting. While getting rid of self-checkout is one way to stop people from taking advantage of the honor system to help themselves to a five-finger discount, it also means giving up the advantages associated with self-checkout. Grocery stores that want to retain self-checkout, at least in some capacity, need to find ways to curtail self-checkout shoplifting.
Is Shoplifting Really on the Rise?
The National Retail Federation says shoplifting incidents surged by 93% between 2019 and 2023. Retailers reported an average of 177 shoplifting incidents per day in 2023, with some experiencing more than 1,000.
Not all shoplifting incidents are associated with self-checkout lanes. The National Retail Federation says that 62% of retailers say groups of shoplifters working together has been a growing concern, while 73% of retailers say shoplifter have become more violent and aggressive.
However, self-checkout lanes are a common source of shrink, and several retailers have been pulling back from the self-checkout trend in an attempt to reduce shoplifting. Payments Journal says several major retailers have retreated from self-checkout, including Target, Walmart and Dollar General, and although retailers typically cite customer service as the official reason, shoplifting appears to be a major factor.
How Self-Checkout Shrink Happens
Not all self-checkout shrink stems from theft. Sometimes customers legitimately just make a mistake. They’re scanning a cart of groceries, and they’re distracted by their children or a call, and when something doesn’t scan, they don’t notice.
Unfortunately, it can be hard to tell what’s truly unintentional and what’s purposeful sleight of hand. There’s no doubt that some people take advantage of self-checkout lanes to steal. It can happen in many different ways, such as:
- Pretending to scan something. Customers may go through the motions of scanning a high-price item without actually scanning it, and then bag it with the rest of their groceries.
- Leaving something in the cart. Customers may keep something in the cart, possibly next to purpose or other personal item, while they scan the other items. They put the rest of the items back in the cart after bagging them, and then walk out with everything.
- Ringing up a less expensive item. Customers may switch price tags, replacing the price tag on their expensive item with the price tag from an inexpensive item. A cashier might notice the switch, so it’s easier to get away with this using self-checkout. Likewise, customers buying produce may select an inexpensive item, like a banana, instead of the more expensive item they’ve purchased.
Should Grocery Stores Get Rid of Self-Checkout?
According to People, a Walmart store in Missouri saw a massive reduction in shoplifting incidents after it removed self-checkout lanes, with calls to police decreasing by more than half.
For grocery stores looking for ways to mitigate shrink, this is compelling. However, getting rid of self-checkout lanes comes with consequences. Many customers like the convenience and speed of self-checkout lanes, especially when they’re only purchasing a few items, and they might not buy anything if it requires waiting in a long line. Self-checkout lanes are also ideal for stores that are experiencing staffing shortages or want to have workers focus on other tasks.
According to the U.S. Sun, some stores in Long Beach, California, had to close some of their self-checkout lanes to comply with new city ordinances meant to curb shoplifting, and it led to long lines and angry customers.
Do you want to keep self-checkout lanes while controlling associated shrink? See our tips for reducing theft in self-checkout lanes.
