Major retailer backing off from self-checkout
The backlash against self-checkout appears to be growing.
Dollar General is the latest retailer to indicate they will reverse course on the reliance on self-checkout technology, CNN reported.
“We had started to rely too much this year on self-checkout in our stores,” Dollar General CEO Todd Vasos said, according to the report. “We should be using self-checkout as a secondary checkout vehicle, not a primary.”
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More than half of Dollar General’s 19,000 stores have self-checkout stations, with that being the only option at some of its locations. Recently, however, Dollar General has been putting more workers at the front of its stores to check people out, CNN reported, all in an effort to reduce “shrink,” or loss of products due to shoplifting, employee theft, fraud and customer error.
Studies have shown retailers with self-service checkouts have a shrink loss rate of about 4%, roughly double the industry average.
Vasos referred to shrink during the discount chain’s most recent earnings call, saying it faced “significant headwind,” from the losses. Even with those challenges, Vasos, said, the company plans to open 800 new stores in 2024, with an additional 1,500 remodels and 85 relocations.