WSJ Looks at the State of Self-Checkout

The technology is at a crossroads as new regulation proposals surface.

June 25, 2024

One-third of convenience and fuel outlets have self-checkout kiosks, according to a 2023 survey by market-research firm Incisiv for NCR Voyix. Another 37% of convenience stores are testing or scaling up self-checkout, reported The Wall Street Journal.

And many shoppers prefer to checkout themselves—a November 2023 survey for NCR Voyix found that more than half of grocery shoppers under age 45 prefer self-checkout, compared with only 26% of those over 60.

But even as self-checkout touts benefits like labor savings, speed and efficiency, and has revolutionized the retail industry, it still has its drawbacks. Many still have glitches that require an employee to fix or override.

“Retailers are still trying to balance the efficiency of self-checkout with the need to thwart theft. Some have removed self-checkout stations, while others limit the number of items in a purchase. Many have installed machines that don’t take cash. New systems add cameras and algorithms for spotting likely thefts,” wrote the Journal.

Some retailers are rolling back their self-checkout technology. Earlier this year, Amazon said it would step back from its Just Walk Out cashier-less technology that relied on cameras and sensors capturing what consumers left with.

Retail giant Walmart is also removing self-checkout from some stores, as Target and Dollar General also scaled back on the number of self-checkout machines available.

And importantly, a new proposed California law could make some stores get rid of self-checkout if their machines don’t meet specific requirements including upping the number of employees monitoring the stations.

The California Chamber of Commerce is opposing the bill, saying it would hurt businesses.

“For example, the grocery space, where they're operating on pretty thin margins. … When you're having to make these drastic adjustments or adjust staffing ratios, that can be a big cost impact,” said Ashley Hoffman, senior policy advocate of California Chamber of Commerce.

The WSJ noted that most new technologies often don’t reach their full potential until organizations and consumers change up their routines. “Who knows? Freeing up cashiers to offer directions and provide advice to shoppers might restore a personal touch to self-service stores,” the Journal wrote.

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