istock.com/hapabapa
Should Target Be Limiting Self-Checkout Hours?
Target is limiting access to self-checkout terminals in some locations as part of efforts to reduce shrink while directing more customers to cashiered terminals.
Self-checkout lanes in select stores are open from 10 a.m. or 11 a.m. until 7 p.m. or 8 p.m. according to an r/Target Reddit thread. Regular business hours at most Target stores are from 7 a.m. or 8 a.m. to 10 p.m. The Target employees’ thread also noted that some stores are keeping a limited number of self-checkout stations open during non-peak times mid-week while keeping all open over the busy weekends.
Comments in the thread ran largely negative to the development, with many Target employees fretting about long lines with fewer checkout lanes being open amid understaffing challenges.
Employees told Business Insider that Target is looking to limit the number of self-checkouts in part to reduce shrink, both from shoplifting and “partial shrink,” or when a customer deliberately misidentifies items, such as keying in a cheaper code for the fruit and vegetable they’re purchasing.
A survey from LendingTree found 15% of self-checkout users have purposely stolen an item — including 31% of Gen Zers and 21% of millennials — and 44% of self-checkout thieves plan to do it again.
However, the Business Insider article also indicated that the shift to downplay self-checkout is also designed to steer shoppers to staffed checkout lanes that also offer opportunities to promote the Target Red credit card, a priority for the chain.
Last fall, Target began restricting self-checkout to customers buying 10 or fewer items at some locations in a test designed to shorten wait times and “better understand” shopper preferences.
“Our guests tell us they enjoy interacting with our team,” Target COO John Mulligan said on a quarterly call with analysts last November. The company has “refocused” its checkout areas and has since seen a 6% increase in customers using full-service cashier lanes across its stores.
Self-checkout stations have become prevalent across the grocery channel to help retailers reduce labor costs and speed checkout for shoppers. RBR Data Services’ Global EPOS and Self-Checkout 2023 study forecasts 450,000 self-checkout installations in the U.S. by 2028, up from 280,000 in 2022. A report from FMI still found only 30% of grocery transactions are processed through self-checkout.
Retailers appear to be rethinking self-checkout, with Walmart, Costco, ShopRite, Five Below, and Dollar General among those either removing and reducing self-checkout stations, adding staff to assist at self-checkouts, or emphasizing cashiered stations.
Yet surveys show many shoppers prefer self-checkout. According to a recent survey of U.S. consumers by NCR VOYIX, 45% of shoppers (53% of Gen Z and millennials) prefer self-checkout over traditional manned registers. The top five reasons were the technology’s speed, the ability to bag your own items, shorter lines, privacy, and avoiding interaction with cashiers.
Discussion Questions
What do you think is behind Target’s move to reduce access to self-checkout terminals at some locations?
Do such moves carry too much risk around overtaxing in-store staff or alienating customers who prefer self-checkout?
Poll
Loading …BrainTrust
Mark Ryski
Founder, CEO & Author, HeadCount Corporation
Mohammad Ahsen
Co-Founder, Customer Maps
I have to be blunt and say Target has become increasingly annoying with its self-checkout policies. First, we had limits on the number of items. Now we have some stores reducing self-checkout hours. If Target compensated by opening more manned registers, then this wouldn’t be so much of an issue. However, it often does not, which leads to long lines and causes frustration. I understand that theft could be an issue but if that’s the case then perhaps review the whole way self-checkout works. Causing more friction for customers is something Target cannot afford at the moment as sales growth and profits are already under pressure.
I agree Neil. I was listening to some Target alumni discuss the rumors that Target will roll-out a paid membership program, and they referenced how it seems to be one thing on top of another, eroding the original brand promise to their “guests”. It boils down to the entire front-end strategy. Not just what you do with SCOs.
Yes, I think a degree of over-complication is creeping into Target’s thinking. They need to get back to being 100% customer centric.
Amen, brother.
Still enjoying the responses to your recent LinkedIn post on this – it’s a hot topic with a lot of emotion!
YES !!! Amen to you all! COMPLETE Over complication!
I take Target’s stated reasons for reducing self-checkout access at face value – they are trying to balance shrink concerns with customer service – but it’s a delicate balance. Restricting access to self-checkout is still restricting access and the shoppers who love shelf-checkout will feel like a service has been taken away. For these customers, every time they are now forced to wait in a cashier lane will feel inconvenienced. This will especially be the case if the cashier line is moving slowly because cashiers are being asked to encourage loyalty program sign-ups. Making any store procedure change will have some impact on customers and staff, and it will be impossible to please everyone, I believe that Target is approaching this in a smart way: make incremental adjustments, understand the outcomes, then adjust further as needed.
Target’s limiting of items at self-checkout without opening additional manned registers was maddening for many customers. Now, adding limited self-checkout hours on top of this creates even more inconvenience. I sure hope they are carefully monitoring the impact on the guest experience!
This was a lively topic of converstion on one of the DIY retail boards (RetailWatchers) and I largely concur with what was voiced there: at times Target seems like they don’t know what-the-He** they’re doing. Yes, of course there are dangers of shrink in self-directed checkouts – just wait ‘itl ….if?…”scan-and-go” catches on! – was Target unaware of this ?? And if so, why did they install large numbers of self-check kiosks in their stores?? I don’t have access to their data, so I can’t say what is best, but (even wihout a single number at my fingertips) I can say that having banks of self-check sitting empty, while people wait in long lines for cashiers, won’t go over well.
The desire to minimize theft has led Target to reduce access to self-checkouts.
A local Walmart started doing the same thing last month. Despite all the cameras on self-checkout kiosks and overhead, and constant vigilance by store associates and security guards, some shoppers still abuse the process.
Reducing self-checkout traffic frustrates some shoppers due to longer lines and fewer checkout options. Yet in-store staff may feel relieved that they can focus on serving customers rather than scrutinizing their every move.
I don’t know what’s going on with Target and its checkout policies. The last time we discussed this topic I responded that Target’s 10 items or less rule is a pain in the shorts. It’s not like you have a lot of choice, at least at my local store, because there are rarely enough manned checkouts open to handle the amount of shoppers trying to pay for their 11+ items.
And now Target wants to open the self-checkouts late and close them early? Come on. Shopping at Target is fun, checking out at Target is not.
Add altering times of store operation, single line queue to checkouts, rethinking the entire transaction zone. None of these tactics are new to retail, and while they seem to differ from Food to Mass to Drug to Specialty retailer, at their core remain the same four objectives – maximize throughput, decrease operational cost, deter shrink, while not eroding customer experience.
The challenge at hand is not isolated to self-checkout issues or shrinkage concerns; it requires a comprehensive front-end strategy. For instance, at Walgreens, we tested a new front-end layout by relocating candy from in-aisle to the front wall and detached the checkout from the front wall, creating a freestanding arrangement. Although met with skepticism from long-standing customers, the changes garnered praise from the younger generation and those who appreciated the more open and inviting store ambiance. Did we roll it out chain-wide? No. Did we disrupt four stores during testing? Yes. Did we put those stores back together?…Yes eventually….And yes, such moves carry what should be an acceptable amount of risk, and whether we like it or not, overtax in-store staff and run the risk of alienating customers.
BUT…the key lies not in “winning” with specific tactics, but in learning from disciplined A/B testing, applying successful outcomes, and iterating on and retesting the less successful ones.
Is there a direct relationship between the number of open self-checkout (SCO) lanes and the amount of theft? If there is, it tells us that reducing the number of available SCO lanes will help the retailer contain loss but at the expense of providing the customers a preferred method. If the SCO lanes are reduced only during low-traffic hours, the impact to the consumer is negligible but does that necessarily mean that retailers must add a manned lane? Maybe not. If there is a direct relationship between open SCO lanes and theft is it due to the number of open SCOs or is loss directly related to high traffic volume. We don’t have the statistics to opine one way or the other. What we do know is that removing SCO lanes goes completely against the original concept of speeding up small market basket purchases, and reducing labor costs. We also know that, regrettably, retailers have made large investments in SCO hardware which is not written off the books yet.
Target should consider scanning your Target Circle membership ID (this is a complimentary rewards program) as a pre-requisite for using the self-checkout lanes. Make it a benefit for those customers, and you’ll also likely see SCO shrink go down as those customers are presenting more identifying information about themselves as part of the checkout.
This is what Tesco do in the UK. To use scan and shop – which is a far better system as you can scan as you put things into the cart and then just pay at the end without rescanning – you need to be a member of Tesco Clubcard. That way every transaction is identifiable against a known person.
I am not sure closing self-checkout for a few hours at the beginning and end of days will make a huge difference in shrink. What about the other hours of the day? Solving the shrink problem across all brands will require more cameras to identify the items being scanned or spot check of receipts at the door like Costco does. Bad characters will continue to do bad thinks until they are caught.
Self-checkout may not be perfect, but that doesn’t mean it will disappear. There will eventually be a process or technology that helps with shrink and is easy for customers to use. Retail continues to evolve as it experiments with what creates the best for both the customer and the retailer.
In the case of self checkout, the proverbial cat is already out of the bag. Too many people like it, and these “workarounds” seem to accomplish nothing but annoy people. Plus, the savings is real-you need fewer people up front.
And yet-with the increase in theft becoming a nationwide problem, do SCO’s simply aid thieves? I do not think so-the stealing is much more promiscuous than one or two items at checkout. Also, “Gaming” the front end with various policies is not new–years ago a major retailer gave incentives to store managers for increased volume at SCO. So what happened? They started closing down cashier lanes, essentially forcing customers to use SCO. Mischief managed!
I think Target should make up their mind, have a policy, whatever it is, and stick too it.
Care should be exercised not to penalize customers for your policies. For every policy measure the impact on the customer versus the store. If the policy does not enhance customer satisfaction, change it. This applies here. Many customers want self checkout. Figure out how to make it work versus restricting hours or items.
I’m half-joking, but if Target can’t manage the shrink impact of self-checkout during off peak hours, how do they manage it at all? Why not just eliminate self-checkout entirely? (I said I was half-joking.) Are the costs associated with shrink really greater than the payroll needed to open more registers and keep the lines moving?
Just once I’d like to read about shrink in the context of what local/state governments and law enforcement are doing to support businesses instead of reading about the different band-aid solutions retailers keep experimenting worth. The band-aids are aggravating the honest people and doing very little to deter the dishonest people. How about a solution that gives honest people the freedom and flexibility they want and actually addresses criminal behavior? How about consequences? We tried loosening the laws and we now know how well that worked. There has to be a way to scale deterrence and consequences from petty theft to organized crime that would be more fair to more people and businesses than the status quo.
Target’s decision to limit access to self-checkout terminals in some locations is driven by multiple factors. Firstly, it aims to reduce shrink, including losses from shoplifting and intentional misidentification of items. The move is also designed to steer customers toward cashiered terminals, promoting the Target Red credit card, a priority for the chain. Target has observed increased use of staffed checkout lanes and seeks to manage self-checkout usage percentages to ensure a balance based on store staffing levels and sales volumes.
Limiting self-checkout access may risk overtaxing in-store staff and alienating customers who prefer the convenience of self-checkout. Striking a balance is crucial for customer satisfaction and operational efficiency.
This is an absurd action from Target. Self-checkout represents enhanced customer service as well as more easily managed store employees. Reducing stress on employees, making customers happier, and changing the store environment to one that trusts the customer is key with self-checkout lanes. If Target was serious they would increase the numbers of employees manning the checkstands, and better manage the flow of customers through these in addition to facilitating (rather than restricting) the self-checkstands.
I can understand why Target is limiting self-checkout hours, but it’s disappointing to see fewer lanes open during busy times. I hope they can balance reducing shrink and providing a smooth checkout experience for customers. This seems to be an opportunity to expand the tech capabilities to address shrink; we need to move forward, not backward.
As one who works with commerce systems, let’s just say that there is a lot of financial optics involved when it comes self-checkout systems. Labor immediately shows up as expenses, write-offs due to shrink don’t within the fiscal period when they occurs. Self-checkout can be stressful for those less tech-savvy or less mobile. Some days, it can feel like it’s pitting shoppers against each other when impatient shoppers are pressuring those who are perceived as being too slow or struggling during self-checkout.
Without more data, my gut feel is that a) the shrink numbers are well beyond the acceptable range for Target b) some of the same customers who prefer self-checkout are those who cause shrink, hence the “frustration” c) Target is missing the higher-margin impulse buy upsell opportunities from regular checkout lines – few self-checkout lines offer this as it’s even greater opportunity for shrink d) Target needs to keep up credit-card/loyalty-related sign-ups.
The limited hours and product limit restrictions are just bad customer experience, especially if there aren’t any extra full-service stations. I would imagine this is most likely the result of financial analysts determining how best to work SCO within existing staff shifts and the cost-benefit of the opportunity cost of lost revenue vs. increased shrink.
In my opinion, Target’s decision to limit access to self-checkout terminals likely stems from a dual objective: to combat shrinkage due to theft and to drive more customers toward staffed checkout lanes for promotional purposes like the Target Red credit card.
However, this move risks overburdening in-store staff and alienating customers who prefer the convenience of self-checkout. By restricting access to self-checkout, Target may inadvertently create longer lines and frustrate customers, especially during busy periods.
It is crucial to balance loss prevention efforts with customer satisfaction, and Target may need to reassess its strategy to find a middle ground that addresses shrinkage without compromising on customer experience.