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Home » Why Are Huge Retailers Removing Self-Checkouts From Their Stores?
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Why Are Huge Retailers Removing Self-Checkouts From Their Stores?

WinifredBy WinifredFebruary 5, 20244 Mins Read
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A Costco Retail Store
Source/Wikimedia Commons
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A Costco Retail Store
Source/Wikimedia Commons

It’s common knowledge that self-checkout technology offers convenience and efficiency to retail stores. However, the system has generated mixed reactions among customers, as many don’t like it. For one, self-checkout systems can be intimidating for customers who are not tech-savvy or used to technology. 

To them, navigating the scanning, bagging, and payment process can be slow and frustrating. Plus, some customers prefer human interaction and attention at checkout lanes to the robotic nature of these machines.

Recently, many retailers have reconsidered their approach to self-checkout systems, including the crowd’s favorite, Costco. They have discovered that though it is efficient, self-checkout has increased the theft rate, customer errors, etc.

Aside from that, retailers recognize that the shopping experience is about creating positive customer interactions. Many consumers value the personal touch and assistance human cashiers provide, which self-checkout lacks. 

ALSO READ: There Will No Longer Be Self Checkouts at Walmart, Costco, and Wegmans Soon!

Boots Managing Director Nigel Murray told the BBC, “Our customers have told us this over time — that the self-scan machines that we’ve got in our stores … can be slow, they can be unreliable, and they’re obviously impersonal.”

Like other retailers, retail giant Costco has decided to remove self-scanning machines from its stores. Costco CEO Craig Jelinek’s decision hinges on his employees doing a better job than self-scanning machines. The company is dedicated to preserving the traditional values of personalized service and customer engagement.

“They are great for low-volume warehouses, but we don’t want to be in the warehouse business,” Jelinek told Bloomberg Businessweek. With human cashiers, Costco can ensure that customers receive the attention and assistance they deserve throughout their shopping experience.

POLL — Should the Government Implement Stricter Penalties To Combat Retail Theft?

Also, scrapping self-service checkout addresses concerns surrounding security and loss prevention. With human cashiers overseeing transactions, it reduces the risk of shoplifting and fraud.

Another factor that gave rise to Costco’s decision is the case of non-members using unauthorized membership cards at its stores. Non-members would sneak in membership cards that didn’t belong to them to gain benefits and discounts. “We don’t feel it’s right that nonmembers receive the same benefits and pricing as our members,” Costco stated.

With this move, Costco can prevent the misuse of membership privileges and ensure that only legitimate customers have access to certain benefits. But it seems the retail company is not the only one that ditched automated machines for human cashiers.

ALSO READ: Teen Shoplifter Who Fatally Stabbed Shop Owner Gets Mild Sentence 

Early last year, Walmart removed self-scanning machines from its stores in New Mexico. In a statement to Business Insider, Walmart spokesperson Josh Havens said, “We continually look at ways to provide our customers with the best shopping experience, and that includes adjusting the checkout area in stores.”

The retail company announced it would increase the number of employees assigned to self-checkout kiosks. The plan is aimed at providing hands-on assistance to customers. In certain instances, these employees may even ring up entire purchases for customers, offering a higher level of support during the shopping process.

As more retail companies remove self-checkouts, we hope to see a shift in the retail industry. Also, as retailers continue to innovate and adapt to changing consumer preferences, the future of self-checkout remains uncertain.

Do you support self-checkout?

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