Technology is the future of shopping. We have seen this sentiment take shape over the last few years in retail as mobile ordering and loyalty platforms have become the competitive edge for big box companies. With all the money being funneled into technology, it comes as a great surprise that some retailers are pulling back on a revolutionary piece of tech that has become a staple, self-checkout lanes. These cashier-less lanes have become ubiquitous in all types of grocery and retail stores and have shifted consumer expectations. Major retailers like Walmart and Target have recently announced plans to dramatically shift how they will be using self-checkout lanes. These lanes are not immediately going away, yet it seems that companies are looking to phase them out eventually.

Self-checkout lanes have been in use since the 1980’s and were seen as a way to replace labor costs. Early machines were expensive and filled with issues, plus it was difficult to get consumers on board. The technology has improved over the years and stores began converting some of their traditional lanes for self-checkout. The advantage was easy to see, stores could have one employee overseeing six or more terminals and customers would be the ones doing all the scanning and bagging. There has always been a significant amount of pushback from consumers who feel they are being forced to do tasks an employee should be being paid for. Labor shortages over the last few years have meant that fewer traditional registers are open and this has led to long lines that drive customers to self-checkout. In a post-pandemic world, avoiding standing around others and having fewer face-to-face interactions has been a consideration for consumers too. With more people than ever using self-checkout and fewer employees needed to man the machines, it would seem that companies got exactly what they wanted. Why then are so many reversing course?

One of the main pushes behind the adoption of AI and technology like mobile ordering is to cut back on labor. Self-checkout should fit into this vision, yet there have been unintended consequences. One employee covering six or machines means that customers are often left to their own devices, which has led to higher instances of theft. Retailers have avoided blaming the strategy switch entirely on loss prevention, yet we know that merchandise loss is higher during self-checkout. There is also the issue of technical problems where the machines themselves malfunction or make it difficult to purchase items like alcohol. This leaves consumers frustrated and less likely to buy these high profit products. Publicly, companies have claimed that these self-checkout machines no longer fit their strategy and they want consumers to have more interaction with employees. Target has restricted self-checkout to ten item express lanes that are only open at specific times in some stores. Walmart is considering shifting self-checkout to subscription customers only.

On the surface this appears to be a step backward for technology and the future of shopping. Going back to traditional lanes will be a hard shift for many, yet it also seems like a way to push other technology to the forefront. Restricting self-checkout to customers who are part of a company’s loyalty ecosystem would help cut down on merchandise loss while also generating revenue through subscriptions and gaining targeted data on shopping habits. It is no secret that big box stores like Target and Walmart have recently renovated to allow dedicated spaces for curbside pick-up and delivery. This revolution in shopping provides convenience for the customer and additional revenue for the company all while reducing the strain on employees and store operations. It is reasonable that stores want more people to use this avenue of shopping and if traditional checkout lanes become too unappealing, then funneling shoppers to newly renovated curbside pick-up would be the goal. Companies could still cut down on labor, merchandise loss would be almost non-existent, and additional consumer data and fees would be a financial gain. Technology changes quickly and in the race to stay on top it is clear that retailers are willing to abandon the old in favor of the new.