Self-checkout here to stay, but going through a reckoning
NEW YORK
The promise of self-checkout was alluring: Customers could avoid long lines by scanning and bagging their own items, workers could be freed of doing those monotonous tasks themselves and retailers could save on labor costs.
All that has happened since the rollout of self-checkout but so has this: Customers griping about clunky technology that spits out mysterious error codes, workers having to stand around and monitor both humans and machines, and retailers contending with theft.
In 2021, self-checkout usage represented 30 percent of transactions, almost double from 2018, according to a survey of retailers by FMI. And 96 percent of retailers surveyed offer self-checkout.
But the technology is also facing a reckoning amid the critical holiday shopping season. Some retailers are adding restrictions, while others are pulling out completely.
Self-checkout, first tested in supermarkets in the late 1980s, gained momentum 20 years ago. But grocers ramped it up even more three years ago to address the pandemic-induced severe labor shortages.
The Bureau of Labor Statistics says technological advances such as self-checkout and online sales have been the main driver in the declining number of cashier jobs.
According to Labor Department data, there are about 1.2 million people currently working as cashiers, compared to 1.4 million in 2019 and the BLS expects the number to fall by another 10 percent over the next decade.
“We are at an inflection point where if Americans are willing to do this and show an interest, then stores will probably expand it because they want to slash that labor cost,” said Christopher Andrews at Drew University.
“But right now they’re just seeing downside. They’re seeing frustrated customers. They're seeing increased costs and shoplifting.”
Theft is indeed an issue. Andrews said a technology that relies on shoppers to do their own scanning and punch in product quantities tempts even law abiding citizens to be dishonest.
It's easy to just scan every other item or punch in codes for a cheaper item. Shoppers could also make honest mistakes, leading to losses for stores.
Retailers have been adding cameras or sensors at kiosks to monitor shoppers.
There have been inroads for more advanced technology.
Amazon’s “just walkout technology" is in more than 70 Amazon-owned stores and more than 100 third-party retailers across the U.S., including airports.
It uses sophisticated cameras and allows shoppers to check in with Amazon's app on their phones and then walk out without having to check out. Japanese fashion retailer Uniqlo has RFID chips embedded in price tags to power a self-checkout system at its Fifth Avenue store in Manhattan, as part of a widescale rollout at its stores. Customers place their items in bins at self-service stations and pay — without having to scan items.