Self-checkout lanes were a staple of retailing more than a decade ago, satisfying shoppers who desire speed and convenience while presenting the cost-saving potential for businesses. But times have changed. This growing dissatisfaction has led many popular retail chains to reassess their strategies.
Recent research indicates that 67% of shoppers prefer personal interaction over self-checkout lanes, citing technical issues and the impersonal nature of these systems as their reasons.
Many of the major retail chains are shifting direction, with an increasing number announcing that they will phase out self-checkout kiosks by 2025. Here is a look at the 10 big-box stores abandoning self-checkout.
Walmart
Walmart has been decreasing the number of self-checkout stands in certain U.S. locations, including stores in Missouri and Ohio. This change is part of a broader strategy to enhance the shopping experience by prioritizing staffed checkout lanes.
After testing both self-checking-only stores and standard lanes, Walmart found that consumers like an in-person cashier. Walmart will shift its focus to quicker, cashier-staffed checkouts.
Costco
Costco goes national in eliminating self-checkout to combat theft. In-store theft activity increased, with procurement fraud at unmanned kiosks being one of the perpetrators.
The membership giant is investing in shifting resources to secure its checkout process, which is efficient and theft-free.
Wegmans
Wegmans, renowned for its excellent customer service, announced in 2023 that it would end self-checkout by 2025. According to Danny Wegman, chair of the company, “Our customers are always our number one priority, and we’ve noticed that self-checkout takes away from the high-touch experience we try to provide.”
Kroger
Kroger, one of America’s leading supermarket chains, plans to eliminate self-check lanes and invest in cashier training gradually. Harvard Business Review conducted a study that found companies’ spending on associates reported higher customer engagement and sales, a finding that Kroger plans to trial.
BJ’s Wholesale Club
BJ’s Wholesale Club is soon to join the no-self-checkout ranks, citing a necessity for strong customer relationships as the driving force. The retail club recognizes that fostering a sense of community is crucial, and this holds for its family-focused brand image.
Albertsons
Albertsons plans to eliminate self-checkout lanes to eliminate “lag time” caused by technical glitches and customer errors at kiosks. According to Statista, research indicates that friction in the transaction process, including unexpected costs and website issues, significantly contributes to cart abandonment.
For example, one study suggests that 70.19% of online shopping carts are abandoned globally. Ditching a cashier model eliminates unnecessary lag to streamline shopping.
Target
Target is planning to eliminate self-checkouts and replace them with personalized customer service stands. This aligns with the consumer desire for personalization, as noted in Forrester’s 2023 Research, which reports that 55% of retail customers prefer personalized service when checking out.
Trader Joe’s
Trader Joe’s has been renowned for its quirky, one-of-a-kind shopping experience, so it’s not surprising that it’s opting for a people-focused checkout system. Trader Joe’s managers reiterated that the friendly store cashiers are part of “developing a unique shopping experience.”
Publix
Publix has committed to phasing out self-checkout by 2025 as part of its ongoing efforts to streamline technology. Cash lanes with fewer complaints have existed as long as there has been enough staff to cover peak times.
Publex will ensure this through an increased workforce during peak shopping times.
Hy-Vee
Hy-Vee is transitioning to hybrid solutions that emphasize mobile checkouts with a human touch. Trends in retail innovation studies indicate that an increasing number of consumers are embracing the ability to toggle between mobile and in-store assistance.
Most Hy-Vee stores are expected to be completely transformed by 2025.
Key Takeaways
This company-wide shift reflects a broader industry trend. Self-checkout may have seemed necessary once, but an increasing number of retailers see the potential pitfalls—such as shrinkage through theft, technical issues, and even lower customer satisfaction rates—as outweighing the benefits.
Firms are placing more importance on the value of delivering better service than relying on cold automation. As retail advisor Deborah Weinswig explains, “Retailers are now rediscovering that their greatest asset is the human connection. Technology is helpful, but it’s not always the answer.”
Disclaimer: This list is solely the author’s opinion based on research and publicly available information. It is not intended to be professional advice.
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