Why Self-Checkout Is No Longer Profitable for Retailers

Self-checkout stations were once a retail innovation, promising cost savings, shorter lines, and a smoother shopping experience.

But today, retailers are rethinking their strategies as these machines reveal hidden costs and operational issues.

From high installation and maintenance expenses to rising theft rates and frustrated customers, self-checkouts have brought unexpected challenges.

This video dives into why self-checkout may no longer be as profitable as once believed, exploring if this technology will evolve or fade away in favor of human interaction. Source: SBC News

Self-checkout can be less profitable for retailers because of: 

• Theft: Self-checkout stations can be more vulnerable to theft than traditional checkouts:
  • Shoplifting: Shoppers can trick the system by entering incorrect item codes or not scanning every item. 
  • Accidental theft: Shoppers can forget items at the bottom of their cart or lose track of what they’ve scanned. 
  • Inventory shrinkage: Theft leads to inventory shrinkage, which is the difference between a retailer’s recorded inventory and its actual inventory. 
• Customer frustration: Self-checkout can lead to frustrated customers. 
• Operational issues: Self-checkout stations can have hidden costs and operational issues, such as:
  • High installation and maintenance expenses 
  • Understaffing, which can increase opportunities for theft 
• Complexity: Self-checkout systems can add complexity to the retail experience.