Rethinking self-checkout amid the risks of shrink

Use a store-specific lens

Some stores have stronger incentives to rethink self-checkout than others. That could be because the store has a bigger problem with shrink than other locations in the portfolio, or a higher percentage of regular customers who dislike these systems.

When I had small children in tow, I saw firsthand how frustrating self-checkout lanes could be for busy parents. (Just try scanning and bagging a cart full of groceries with one hand, while using the other to keep your kids from wandering away, grabbing candy off the shelf or bumping into other customers.) 

People with disabilities often find self-checkout to be difficult to use. Also, many seniors greatly prefer face-to-face checkout, as do people with large orders that would seemingly take forever to scan by yourself.

Dynamics at individual stores are worth considering alongside factors such as shrink and labor cost and availability. Do you serve a large number of seniors or young parents? What is your shopper’s average basket size? How many complaints has the store manager received about self-checkout over the past six months?

By paring back the number of self-checkout lanes and hiring additional cashiers, some retailers could turn self-checkout into an option — as opposed to a necessity — for these different customer segments, thereby improving their overall experience. 

But of course, if shrink is getting out of control at a given store, stronger steps might be necessary. Self-checkout lanes create well-documented opportunities for people to walk out of the store with pilfered merchandise. In addition, higher rates of shoplifting can lead to more confrontations with suspected criminals — an unpleasant experience for all and a potential liability risk for the retailer. At some stores, drastically reducing or eliminating self-checkout might be the best way to go.

Create a ‘security box’

Retailers that do decide to remove a few of their self-checkout lanes could consider using the newly available space to create what might be thought of as a “security box.” This involves positioning self-checkout lanes within a self-contained area, with one entrance and one exit. Typically, an employee will stand at the exit to both assist customers and watch what’s going on.

The dimensions of the area are important. If it is too large, the security-enhancing effects could be lost. If it is too small, customers could feel hemmed in and frustrated by the lack of space. Here again, average basket size could be an important factor: If your average shopper buys a relatively small number of items, then a smaller security box might work just fine. Retail architects and designers can help companies establish an approach that works for their customers and stores.

Stay open to other tech options

Certain other technologies that outsource checkout to customers — for example, by allowing them to scan items and drop them in their carts as they shop the aisles — can carry shrink risks of their own, depending on how these systems are arrayed and employed. 

In addition to reevaluating the shrink risks associated with conventional self-checkout lanes, retailers might want to take a second look at the potential downsides of any other self-checkout systems they employ.

All of that said, retailers should stay open to new technology solutions hitting the market. Various companies continue to push the envelope on self-checkout via experiments involving the likes of biometric-detection, mobile apps, RFID chips and AI-fueled cameras and carts. At some point, the push for innovation could lead to checkout nirvana — an automated approach that truly is headache-free for both shoppers and stores.