A popular retailer, Canadian Tire (similar to Kmart in Australia), has decided to remove self-service checkouts from selected stores following customer feedback. This move has been applauded by shoppers. Walmart in the U.S. and Booths in the UK also recently removed self-checkout systems due to complaints about lack of service and human interaction.
Self-checkout systems were introduced globally, including in Australia, about a decade ago to speed up service and reduce labour costs. However, they have not been universally popular, with some customers preferring interaction with employees. Australian chains Coles and Woolworths have resisted removing self-service checkouts and have instead increased security measures due to rising thefts and violent behaviour towards staff.
New security technologies include overhead cameras, trolley locks, smart gates, and anti-theft fog machines. Staff are also equipped with bodycams.
There has been a rise in shoplifting in Australia, linked to financial stress, with a significant number of people admitting to stealing or misrepresenting items at self-service checkouts.
A US credit analyst, Matt Schulz, noted that retailers are weighing the benefits of self-checkout against the risk of increased shoplifting. He suggests that while self-checkout won’t disappear, there might be a shift towards more balanced options for shoppers. Shoplifting is estimated to cost the Australian retail industry $9 billion per year. It is estimated that stock theft represents 1 to 3% of wholesale revenue.
A survey of 1000 people found 12% of respondents confessed to stealing in the last year due to financial stress and 5% of Australians have stolen items at the self-checkout while 4% scanned items in as cheaper items.
Another study by Monash business school found attitudes among younger consumers 18- to 34-year-olds that ranked several forms of theft as ‘a little understandable’ including 61% of respondents scanning items as cheaper items while using self-checkouts.
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