The End of Self-Checkout: Walmart Institutes Charges in Some Stores

Written by Mish Shedlock for MishTalk

Self-checkout theft and customer complaints are becoming a significant issue. Walmart has decided to address this by charging a yearly fee of $98 for Walmart+ members to use self-checkout facilities at certain stores.

Reduction of Self-Checkouts by Retailers

According to The Wall Street Journal, retailers are reconsidering the role of self-checkout stations in their stores. This is an attempt to increase profit margins and enhance the customer shopping experience. Some retailers, including Target, Dollar General, and regional grocery chain Schnucks, are limiting the number of items that can be processed through self-checkout to avoid congestion and reduce staff stress. Schnucks has imposed a limit of 10 items or less per self-checkout transaction. The primary goal of this move is to enhance customer service and checkout efficiency, but it is also expected to reduce theft. "This item limit will help us maintain our costs while keeping the prices lower for our customers," said a representative from the company. A survey conducted by LendingTree revealed that about 20% of self-checkout users admitted to unintentionally leaving the store with an item they did not pay for. Furthermore, 15% of users confessed to intentionally stealing an item.

Walmart's Approach to Self-Checkout

Walmart, the largest retailer in the nation, has removed self-checkout lanes in some stores, replacing them with cashier-staffed lanes. In stores where checkout access is restricted, self-checkout lanes are reserved for Walmart+ members, who pay an annual membership fee of $98. In 2022, Dollar General reported that self-checkout was so successful and well-received by customers that they experimented with making some stores entirely self-checkout. However, a year later, CEO Todd Vasos reconsidered this approach. "We had relied and started to rely too much this year on self-checkout in our stores," Vasos said during a December earnings call. "We should be using self-checkout as a secondary checkout vehicle, not a primary." In March, the company announced that it would remove self-checkout in stores with the highest shrinkage levels. In the remaining stores with self-checkout, customers would be limited to scanning five items or fewer.

Public Opinions on Self-Checkout

Personal preferences for self-checkout vary widely. Some, like the author, find it frustrating and prefer trained cashiers, who are generally faster and more efficient. However, theft is a significant concern that could potentially lead to the demise of self-checkout in grocery stores. Walmart's decision to charge for self-checkout has been met with resistance. The author, for example, refuses to pay for what he considers a frustrating and inefficient service.

The Incentive to Steal Increases

On April 27, the author noted that spending has outpaced income growth for most of the past 10 months, indicating significant consumer stress. Those struggling with food or rent costs may be more inclined to steal, a problem that could be exacerbated by self-checkout systems.

What are your thoughts on the shift away from self-checkout systems? Do you think it's a good move, or do you prefer the convenience of self-checkout? Share this article with your friends and let us know your thoughts. Don't forget to sign up for the Daily Briefing, which is delivered to your inbox every day at 6pm.