Costco and Walmart move away from self-checkouts after customer backlash

10 October 2023 , 11:11

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The target CEO said he expected to see $600 million in losses due to theft (Image: SOPA Images/LightRocket via Getty Images)

After customers voiced frustrations with self-checkout machines, some big retail stores decided to make changes. This comes as shoplifting continues to surge.

Stores such as Costco and Walmart have launched new methods to combat the increasing backlash from customers regarding their systems. Walmart announced that it is completely removing self-checkouts three of its stores in Albuquerque, New Mexico. Walmart spokesperson Josh Havens told Insider : "We continually look at ways to provide our customers with the best shopping experience and that includes adjusting the checkout area in stores."

Walmart and Costco now look to scrap the self-check out machines due to increasing frustration from their customers (NurPhoto via Getty Images)

Whilst Walmart has not revealed whether it will ditch self-checkouts at other stores, Costco has also announced that it will make some changes. These include asking staff to check customers’ membership cards and help with customer scanning at self-checkout machines.

The membership card checks come as companies are dealing with higher rates of theft after installing self-checkout machines in stores, two company advisors told CNBC. Adrian Beck told CNN : “If you had a retail store where 50 percent of transactions were through self-checkout, losses would be 77 percent higher.''

Target CEO Brian Cornell said this year during a conference call with investors that that the company expected to lose $ 600 million in profits due to theft. He added: "While shrink can be driven by multiple factors, theft, and organised retail crime are increasingly urgent issues impacting the team and our guests and other retailers."

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“The problem all of us, limited product availability, creating a less convenient shopping experience, and putting our team and guests in harm's way."

Even if a shopper does not set out with the intent to steal, there is still room for human error which can negatively affect profits. Beck added: “Consumers are not very good at scanning reliably. Why should they be? They’re not trained.”

Some customers have voiced their issues with self-checkout on Reddit. One user wrote: "I don't use self-checkout. When you use it, the number of cashiers they have working is reduced. I also don't like the fact that I'm doing a job that I'm not getting paid for, nor getting a discount.” Another user said: "I'd like them more IF THEY SCAN PROPERLY! half the time I'm wiggling the thing in front of the scanner like I'm trying to solve a Rubik's cube..."

Despite issues with self-checkout, over two thirds of shoppers prefer it over traditional checkout, according to Play USA , so a shift away from self-checkout could be aggravating to some. “I would find it annoying if the lines were too long," a shopper told Today when asked how she would feel if there was no self-checkout. The Mirror has approached Walmart for comment.

Emilia Randall