The consequences: How Self-checkout has increased theft and negatively impacts communities

The retail industry has undergone significant transformation in recent years, with technological advancements revolutionising the way we shop. One such innovation is the introduction of self-checkout kiosks, sold to consumers as 'streamlining checkout processes and enhancing customer convenience'. While these kiosks initially offered financial benefits for retailers, their implementation has led to a significant increase in criminal activity. This short article explores how self-checkout kiosks, while intended to improve efficiency, have facilitated theft, negatively impacting both retailers and the community at large.

The rise of self-checkout kiosks: The introduction of self-checkout kiosks began as far back as 1986. Initial testing of self-checkout kiosks reported an uptick in theft, but by transferring work from paid employees to unpaid customers retailers estimated the loss of inventory to be less than the cost-saving benefits. Without the need for cashiers, self-checkout kiosks have become increasingly prevalent in retail settings. As of 2021 96% of retailers were offering self-checkout.

The Dark Side of Self-Checkout: However, the widespread adoption of self-checkout kiosks has also brought about challenges, chief among them being the rise in theft and fraudulent activities. One of the primary reasons for this increase is the reduced level of oversight and accountability inherent in self-service transactions. Unlike traditional checkout lanes staffed by cashiers, self-checkout kiosks often lack supervision, making it easier for dishonest individuals to exploit vulnerabilities in the system.

Facilitating Theft: Self-service kiosks inadvertently provide a breeding ground for theft through various means. One common tactic is "ticket switching," where shoppers intentionally scan cheaper items or manipulate barcodes to pay less than the actual value of the merchandise. Additionally, some individuals exploit technical glitches or loopholes in the self-service interface to bypass payment altogether, effectively stealing from retailers. In November 2023 CBS published an Insider report indicating a third of GenZers had stolen at kiosks.

Impact on Retailers: The proliferation of theft facilitated by self-checkout kiosks has growing repercussions for retailers, both financially and operationally. The loss of goods through theft contributes to shrinkage, a prevalent issue in the retail industry that erodes profit margins and undermines business sustainability. Moreover, retailers are being pressured to allocate resources towards implementing security measures and loss prevention strategies to mitigate the impact of theft, diverting funds that could otherwise be invested in enhancing the customer experience, offering better value, expanding business operations, or simply providing financial stability.

Community Impact: Beyond its effects on retailers, the prevalence of theft facilitated by self-checkout kiosks has broader implications for the community at large. Unmanned kiosks not only provide a gateway for first time theft, they also embolden organised crime. The financial losses incurred by retailers due to theft can result in higher prices for consumers, as businesses seek to offset losses by passing on the cost to shoppers. Furthermore, the negative reputation associated with theft-prone retail environments is shrinking the retail employment pool out of safety concerns for the physical and mental wellbeing of would-be retail staff. It also deters potential investment and can even result in the closure of stores thereby reducing local employment opportunities.

Conclusion: While self-service kiosks have undoubtedly transformed the retail landscape, their consequences are turning into a horror show. The rise in theft facilitated by these automated systems not only poses significant challenges for retailers but also has far-reaching implications for the community. I welcome the news that some retailers have started to retreat from self-checkout. In my experience these kiosks are often slow and unreliable. When it comes to choosing where to shop, I would certainly place my loyalty with a retailer who chooses not to trade employment and community safety in favour of profit.