TheStreet’s Post

I spoke with the Star Tribune about Target's new item limits for self-checkouts. Target has said this isn't related to reducing shrink, however, I am really not buying that narrative! There's a lot of shrink that happens at self-checkouts, both deliberately and accidentally. Nudging people back to manned checkouts where it's more of a controlled experience, and these mistakes don't happen, is a way of trying to reduce that shrink. https://lnkd.in/e-7e8nfi #retail #checkout #retailnews #customerexperince

🛒 Dollar General's strategic move to eliminate self-checkout machines from 300 stores and convert registers in 9,000 others reflects a significant trend in retail driven by mounting customer dissatisfaction and the alarming rise in theft. 😲 According to a November LendingTree survey, a jaw-dropping 31% of Gen Z shoppers admit to shoplifting from self-checkouts, compared to 15% of overall shoppers. 46% of Gen Z participants said they plan to steal the most expensive item in their cart, while 37% said they will forgo paying for basic items, like food and water. As reported by Progressive Grocer, according to research from Grabango, self-checkout machines are contributing to shrink in a major way, with losses totaling 3.5% of sales, or more than 16X more loss than traditional cashier lanes. 💡 Meanwhile, major retailers like Walmart and Target are also adapting their self-checkout strategies. In a press release last week, Target announced plans to transition to express self-checkout in most of its 2,000 U.S. stores, limiting the number of items a shopper can self-scan to 10. Target locations piloting this system reported that it was twice as fast as before, indicating a potential solution to both theft and customer dissatisfaction. Curious to hear your thoughts on self-checkout in the comments 👇 #retail #data #insights #lossprevention https://lnkd.in/e8Jjp8JW

https://lnkd.in/gisCgTaj "Still, rising theft — part of what retailers call "shrink" — is the primary reason self-checkout is being ditched in some stores and restricted in others, according to Saunders. "Self-checkout is an area of the store people can steal things," said the analyst, who noted that shoppers also make genuine mistakes, such as not scanning items properly. "Retailers are very actively trying to reduce it, or in Target's case put more restrictions around self-checkout to try to reduce the losses they incur from it." Costco in November added more staff in self-checkout areas after finding that non-members were sneaking in to use membership cards that didn't belong to them at self-checkout. Costco said shrink had increased in 2023 "in part we believe due to the rollout of self-checkout." Another approach is adding a receipt-scanning gate at self-checkout areas, which Safeway has done at multiple locations in California, in addition to shutting down self-checkout entirely in some stores."

Part Five - Help yourself, don’t mind if I do! “Now, retailers including Costco, Walmart, and Kroger are rethinking some of their self-checkout strategies. Some are finding they still need employees to combat theft, assist with purchases, review IDs, and check receipts.” Shoppers have been left to ring it, bag it AND pay for the bag. (not to mention the loss of a job). Q. Would you like buy a bag? A. No. thanks I’ll just Carryout. The self-checkout prompted a shift in shopper behavior and customer attitudes, not savings. Security cameras, sensors make it feel like you are playing in a live video game or reality TV that offers an on-site prize. “To catch a Thief” #realtretailremedies https://lnkd.in/dBS2QtcH

After some retailers commented in recent months on problems with "shrink," which includes theft, they're cutting back on self-checkout in what retail experts say is an effort to stem the losses. #retail #selfcheckout #walmart  https://lnkd.in/gnnBKGN3

Interesting -- some #retail stores look to trim overhead by reducing staff and cutting #CX training. One of the results has been..."inventory shrinkage." In other words, there's a lot more shoplifting at the stores with fewer and inadequately trained team members. Best Buy and Lowe's Companies, Inc. went the other direction. "We have not called out material impacts to our business as a result of shrink for at least the last two years,” said BestBuy's CEO Corie Barry. “Having spent my entire adult life in retail at every level, the one thing that I understand clearly is that the greatest deterrent for any type of theft activity is effective customer service,” said Lowe’s CEO Marvin Ellison. The question: is your cost-cutting actually costing you? Have you thought of the Ultimate Customer Experience® as a profit center rather than an expense? https://lnkd.in/gDFudrTn

In the long run, which costs a company more? Hiring and training frontline staff to assist customers with finding products and operating checkout lanes and thereby reducing shrink; or reducing frontline staff and putting the onus on customers for checkout and thereby increasing the potential for shrink? The answer seems obvious to me...

While reducing theft is essential, it's crucial that retailers find ways to implement technology without making honest customers feel unwelcome or accused of wrongdoing. Striking the right balance between technology and human intervention can help create a more harmonious shopping experience for all. #walmart #retail #selfcheckout #lossprevention #customerexperience https://lnkd.in/eaiZVtZ7

This article made me laugh. Self check-out kiosks are great until they are not. #retailinnovation #self #checkout #socialanxiety #shopping #ethics "And then, of course, there’s theft. Not only does the act of bagging up your own stuff create new opportunities to make it out the door without paying for everything, but understaffed stores also enable theft overall. The most reliable way to deter shoplifting is to make thieves think they’re going to get caught, but when even customers who want to pay for something struggle to flag down an employee, the store has already forfeited that battle entirely. Theft, as well as the losses from the unscanned and mis-scanned items that poorly designed kiosks create, is a trade-off of which retailers are well aware. (Companies contacted for this story, including Walmart, CVS, Costco, and Kroger, either did not respond or declined to comment on self-checkout’s relationship to theft.)"