Why Self-Checkout Failed to Replace Cashiers

When you shop at any retail chain or supermarket these days, you find yourself funneled to self-checkout where you’re stuck watching people fumble finding bar codes, bagging their own groceries, navigating the interface, panicking when the machine shouts at them or the screen freezes. Even if you wanted to go back to checkout where a cashier scans and bags for you, you can’t because those aisles are either closed. All this tech just suddenly appeared nationwide in the mid-2010s.

Since the debut of these machines, retailers from Kroger and Walmart to Target all gaslighted that self-checkout was faster and that these machines were there not to replace workers, but to instead to free them to be more productive. They stuck to this script year-after-year despite continuous backlash. Their stocks collectively grew as Wall Street applauded these investments, believing that tech innovation would unlock unprecedented efficiencies and profits for the age-old, overhead-intensive business of retail.

Fast forward just 5 years and self-checkout has been a flop. Some retailers have backtracked, ripping out their machines and going back to human cashiers. While a few chains have continued to gaslight that self-checkout is still the future, the reality is that even they are scaling back - restricting the conditions in which consumers can use these machines.

Ultimately, the retail industry is just as confused as everyone else as there’s no clarity in the data. Is getting rid of a few part-time, $10-15 hourly cashiers actually ever business-wise meaningful if you end up needing to hire full-time loss prevention? Did retailers who installed self-checkout end up saving money or improving their profits? Has anyone’s fundamentals actually changed before and after self-checkout? And how did such a conservative industry get caught up in this hype?

[amicaaranearum]

One factor that may explain the failure to reduce headcount by adding self checkout is the advent of curbside pickup (and delivery). Those services have employees picking merchandise off of store shelves.

This is an inefficient use of labor. Not only are employees basically stocking and unstocking the same items — a wasteful extra step — but they are doing so in an environment not designed for warehousing. Retail stores are laid out to encourage customers to browse displays and make unplanned purchases.

It would be interesting to see a breakdown on stores’ margins for curbside pickup. (Adding to the labor inefficiencies, customers using curbside pickup probably stick more closely to lists, making fewer impulse purchases.)

[lanzelloth]

I personally only have a problem with the ones that try to weigh the input and output, trying to see if you stole something, but all it does is error when you try to use your bag or just cough the wrong way. mfka if I wanted to steal, this thing wouldn't stop me, all it's doing is making everyone's experience worse.

[Aladdinsane]

This reads like the US has a bigger theft problem than the rest of the world, seeing as self checkouts are common as here and are preferable if you have a small order 😅

[Bryar_Smith]

Cashier here - after 10 years in retail I can tell you that while yes, it is frustrating to deal with customers that have no clue what they’re doing and the ones that just walk up to SELF checkout and point and say “do this for me”, it is actually objectively faster for the total line. We can clear more people in the line through SCOT and get the total line shortened than through regular lines.

As others have mentioned theft is our number one problem in SCOT because it leaves a physical opening for people to run through. SCOT cashiers have to be more diligent about checking on all customers, watching for scams like skip-scanning, and BOB and LISA procedures.

[Bron]

This must be a US only trend? Here in Australia it’s almost entirely self checkout with like one cashier isle open. All with little problems

[MattSantos]

The problem is self checkout is at grocery stores here in US. They’re terrible machines and way slower than a cashier. Other stores like Home Depot and Target, it works fine. Problem is that people that don’t know how to use simple technology ruins it for everyone else. Also, self checkout is perfect for 10-15 items or less. Large orders should be done by cashier.

[snapcount]

Self checkout works for 10 items or less, when I bulk shop I like someone scanning and bagging my stuff while I pay attention to how much each item costs. In the US where the average car is more likely a truck/SUV vs. sedan/hatchback, most people do bulk shop compared to other places in the world.

[alexanderlorenzo-vdwk]

Here in Puerto Rico, Walmart has fully self sufficient self checkout, assisted self checkout where an employee is next to the machine and old school cashier lines where they scan your items and somehow all 3 are slow

[BrenBrenMartin]

Canadian here. I think that part of Home Depot's outperformance is that their self checkout machines (at least here in Canada) are vastly superior to those at Walmart and the grocers. They have their own bar code scanner on a gun rather than the fixed ones on the grocers. I've also never had any issues with them, but lots of issues with the grocers ones.

[b]

I’m waiting for them to try and convince us that stocking the shelves is part of the modern shopping experience.

[coma]

Our grocery store (Stop & Shop) has scanners so you can scan your items AS YOU SHOP. It's fun if you have kids (or even as a couple) and incredibly efficient. Checkout is truly a breeze...you go to self-checkout like normal, except you scan your scanner (which shows a barcode when you select the checkout option), all the items come up within a 2-3 secs, you pay, and you're done. This allows you to load your items directly into your re-usable bags (in your cart) AS YOU SHOP. It's been flawless....been doing it for the past 3-4 years. I have no idea why this isn't more popular. Not only are you scanning as you go, but you're loading your bags as you go, too, so they never leave your cart until you're ready to load them into the car.

[lucydavenport]

Hello from the UK, I can't remember the last time I chose a cashier over a self checkout if given the choice. They're so much faster and almost everyone uses them quickly

[TheMatthewDMerrill]

Here's a real list of why self checkout is failing at most stores:
Less staff needed so the company had less employees and was able to keep more profits for themselves.
Customers are treated like criminals every time they miss something or an error on the screen.
No savings for doing the work yourself. (other than time when you have a few items only)

[larymemayberry]

I had a child with me when one of those machines stole a $20 bill from me.
Imagine how long that 30 minutes felt waiting for someone to come attend to that problem.

[mikiYT]

Does it not bother anyone that there are no sources for any of the datapoints used in this video? Unfortunately a common theme with these videos, which is a shame because I really enjoy the content, but have serious concerns with the lack of sourcing.

[divdesmitpieci]

This is just factually wrong, at least globally. In all European countries i've been to in the last few years, the self-checkout is the main way to pay now. It's very common is East Asia too.

[rugu]

did it?
In germany we really appreciate the self checkout, especially young people.

[thecooletompie]

"Self checkout has been a flop overseas", what? Small supermarket chains in my country are closing down because they cannot afford the innovation the self checkout space.

[below]

Canada here, there are four chain grocers in my town but only one of them offers any sort of self-checkout. If you're paying by debit at a grocery store you can ask a live cashier for no-fee cash back and save yourself a trip to the ATM. That's handy

[RadicalTek]

For many seniors, cashiers are their only social contacts.
A shopper gave a cashier flowers for Valentines day.