For over a decade, self-checkout was the retail future, speed, convenience, and cost savings. However nine of the largest retailers in the world are kicking these systems to the curb in an unbelievable reversal, reports MSM.com (June 30, 2025).
The numbers are brutal. Theft at self-checkout can be up to 65% higher than at regular lanes, with shrinkage hitting 3.5% of sales compared to just 0.21% with human cashiers. One study found 15% of users admit to stealing at kiosks, and 44% say they’d do it again. That adds up to over $10 billion in losses for food retailers each year. It’s not just career criminals. With no one watching, people blur the lines, blaming tech errors or telling themselves it doesn’t hurt anyone. With self-checkout transactions 16 times more likely to involve theft, stores are realizing the convenience comes at a staggering cost
As retailers like Dollar General and Walmart scale back self-checkout, the industry seeks a new approach balancing efficiency with personalized service. Self-checkout may save on payroll, but it comes with theft, tech breakdowns, customer frustration, and weakened brand loyalty.
Dollar General has taken one of the boldest steps away from self-checkout. Last year, the chain yanked self-checkout from 12,000 of its 20,000+ stores, dropping its earlier push toward 100% self-service locations. Its CEO blamed “shrink,” or inventory loss, calling self-checkout the company’s biggest obstacle. Remaining kiosks now cap purchases at five items.
Five Below quietly pulled self-checkout from its highest-risk stores, revealing a tough truth, automation doesn’t work everywhere. Returning to staffed lanes did more to curb theft than adding extra security. The data showed that some neighborhoods saw massive spikes in shoplifting when kiosks went unmanned. So the company tailored its checkout systems based on local risk.
Walmart is testing a new tactic: limiting self-checkout access to Walmart+ members in select stores. It’s a bold shift that makes automation feel more like a premium perk than a standard option. The move helps reduce theft by tying kiosk use to verified customer accounts.
Amazon’s grand vision for cashierless shopping hit a wall last year when it dropped “Just Walk Out” from its Fresh grocery stores. The tech, which was supposed to track purchases automatically, relied heavily on human reviewers, over 1,000 people in India checking transactions manually. Some 70% of purchases needing intervention.
Classroom discussion questions:
- Do you think self-checkout is going to fade away?
- What technology is needed to improve the system of self-checkout?
Starbucks says new technology is helping fix one of its customers’ biggest gripes: waiting too long for their coffee. A technology pilot at dozens of U.S. locations has shaved 2 minutes off the average time to make a beverage ordered inside cafes. Starbucks said 3/4 of orders at the test cafes’ busiest times were completed in 4 minutes or less, nearing its service-time goal, while not delaying mobile orders.
The value proposition of harnessing blockchain technology to transform supply chains is not new, as we discuss in Chapter 11 (see pages 451-2). The idea of a distributed ledger, that is transparent and immutable, lends itself to imagining a world where all participants involved in the process of producing, distributing, storing, selling, and consuming a product can view its origin and status in real time. The benefits of such traceability include improved food safety, reduced fraud and optimization in the distribution of scarce resources.
Amazon has the opportunity to scale up its drone delivery coverage quickly by stationing them at same-day delivery sites. The company plans to double the number of these smaller facilities, which are stationed near metro areas and use a streamlined fulfillment process, in the coming years. “Think of products that fit the size and weight capabilities of the drone — like cold medicines and batteries — we place them close to customers at these sites, which enables us to deliver them at our fastest speeds, and now it makes sense to make deliveries even faster via drones,” Amazon said.
