The self-checkout process has changed dramatically over the past few years, and Walmart is at the forefront of these evolving trends. Increased theft, operational challenges, and revenue impact are all playing a role in how the self-checkout process is changing retail economics.
Self-Checkout as a Solution to the Labor Shortage
Self-checkout machines were originally added to grocery stores as a convenient and fast way for customers to check out. Additionally, they helped address the labor shortage where in many cases, stores did not have enough employees to man the cashiers and get customers checked out in a reasonable time.
The Theft Crisis
In 2024, Walmart made the decision to remove self-checkout machines from several store locations due to increased theft. Customers were either scanning the wrong items or stealing items without scanning them altogether.
Theft Hurts Revenue Goals
The theft became so severe at Walmart that Walmart six and a half billion dollar losses from theft alone in 2023. This was a stark increase from three billion in theft loss for 2021.
Industry Response
Other retail giants are following Walmart’s lead in removing the self-checkout machines. Stores like Dollar General and Target are making changes and removing some machines to address revenue loss from theft in their own stores as well.
