For shoppers, self-checkout was supposed to provide convenience and speed. Retailers hoped it would usher in a new age of cost savings. Their thinking: why pay six employees when you could pay one to oversee customers at self-service registers, as they do their own labour of scanning and bagging for free?
The technology is, in some cases, more trouble than it's worth.
"It hasn't delivered anything that it promises," says Christopher Andrews, associate professor and chair of sociology at Drew University, US, and author of The Overworked Consumer: Self-Checkouts, Supermarkets, and the Do-It-Yourself Economy. "Stores saw this as the next frontier… If they could get the consumer to think that [self-checkout] was a preferable way to shop, then they could cut labour costs. But they're finding that people need help doing it, or that they'll steal stuff. They ended up realising that they're not saving money, they're losing money."
Unexpected problems in the bagging area
Many retail companies have invested millions – if not billions – of dollars in self-checkout technology, which Andrews says was first developed during the 1980s, and started appearing in stores in the 1990s. They're not exactly cheap to get into stores: some experts estimate a four-kiosk system can run six figures. (...)
Some retailers cite theft as a motivator for ditching the unstaffed tills. Customers may be more willing to simply swipe merchandise when using a self-service kiosk than they are when face-to-face with a human cashier. Some data shows retailers utilising self-checkout technology have loss rates more than twice the industry average.
In addition to shrink concerns, experts say another failure of self-checkout technology is that, in many cases, it simply doesn't lead to the cost savings businesses hoped for. Just as Dollar General appears poised to add more employees to its check-out areas, presumably increasing staffing costs, other companies have done the same. Despite self-checkout kiosks becoming ubiquitous throughout the past decade or so, the US still has more than 3.3 million cashiers working around the nation, according to data from the US Bureau of Labor Statistics.
Humans or machines?
Consumers want this technology to work, and welcomed it with open arms. However, years later, they're still queueing for tills; waiting for store-staff assistance with errors or age checks; and searching high and low for the PLU code of the Walla Walla Sweet Onions they're trying to purchase.
In a 2021 survey of 1,000 American shoppers, 60% of consumers said they prefer to use self-checkout over a staffed checkout aisle when given the choice, yet 67% of consumers have had the technology fail while trying to use it.
The bottom line is businesses want to cut costs, and shoppers want to get in and out of a store. If self-checkout isn't the answer, they'll find another avenue.
"It's not that self-checkout technology is good or bad, per se… [but] if we try self-checkout and realise we're not benefitting from it, we might switch back to not using it," says Amit Kumar, an assistant professor of marketing and psychology at the University of Texas, who studies consumer behaviour and decision-making.
That appears to be happening in many cases, as customers' frustrations with the technology persist. But Andrews says that while stores may change up their strategies – as seen with Dollar General and others – many large retail chains are likely to keep kiosks in stores due to sunk costs. "They spent billions putting it in stores, and are hoping they can still get the public to buy into it," he says. (...)
"It was part of a larger experiment in retail in trying to socialise people into using it," he says. Simply, "customers hate it".
by Sam Becker, BBC | Read more:
Image: Alarmy
[ed. The technology sucks because too little thought was put into human psychology. It worked for gas stations, sure, but that's just a nozzle in a tank. A shopping cart full of groceries (with different vegetables and fruits)? Forget it. (I'm still not over Costco installing mostly unused kiosks, making their lines even worse).]
