Self checkout systems are rapidly transforming the retail landscape. With queues a top frustration for 60% of shoppers [1], forward-thinking stores are implementing self service to speed up the shopping experience.
This comprehensive guide will explore the capabilities of today‘s self checkout technologies, best practices for implementation, and the future outlook as adoption accelerates.
What are Self Checkout Systems?
Self checkout allows customers to scan items, make payments, and bag their purchases without a cashier‘s assistance. Retailers install dedicated self checkout stations or implement mobile apps for shoppers to self scan with their phones.
Staff are still present to monitor operations, provide guidance, and conduct age-restricted sales. But by empowering the customer to complete purchases independently, stores can reduce labor expenses and checkout lines.
The Leading Self Checkout Station Providers
For retailers adding dedicated self checkout terminals, several technology partners offer leading solutions:
NCR: Over 475,000 NCR self checkout units installed globally. Offers hardware, software, and services.
Toshiba: 300,000+ Toshiba self checkout systems in use. Focuses on ease of use.
Diebold Nixdorf: Leading vendor with large North American presence. Strong services.
Each provides station hardware, software solutions, and ongoing support. Pricing depends on customization but averages ~$70,000 for a 6-lane station.
Types of Self Checkout Systems
There are several approaches to enabling self service checkout in stores:
Self Checkout Units
The most common implementation, self checkout units consist of stations where customers scan goods, make payment, and bag items themselves. Units are typical in grocery and retail stores like Walmart and Kroger.
Pros
- High capacity
- Familiar experience
- Reduced labor costs
Cons
- Upfront equipment investment
- Can experience technical glitches
- Higher theft/shrinkage risks
Self checkout station [Source: Toshiba]
RFID-Enabled Checkout
Using RFID tags on inventory, these systems automatically scan all purchases when shoppers place their carts in the checkout area. This results in checkout times under 30 seconds! [3]
Pros
- Ultra-fast checkout
- Inventory tracking capabilities
Cons
- Cost of tagging all inventory
- Expensive equipment
RFID Scan [Source: Rain RFID]
Mobile Checkout Apps
Retailers can implement apps allowing shoppers to self scan items with their phones as they shop, then pay and exit the store. Snabble, scannku, and Imagr offer white label mobile checkout apps.
Pros
- No equipment costs
- Very quick checkout
Cons
- Lower scan reliability
- Shopper education needed
Mobile app scanning [Source: Adesso]
Vending Machines
These fully automated, grab-and-go style machines dispense common convenience items once payment is made. Customers do not handle products until after purchase.
Pros
- Highly automated
- Reduced labor costs
- Lower theft potential
Cons
- Limited to simple purchases
- No customer product interaction
Vending Machine [Source: Minbox]
Each self checkout approach has advantages that make it better suited for certain retail formats. The optimal solution depends on store size, volume, product mix, and customer demographics.
Current Self Checkout Adoption
Self checkout units and apps saw accelerated adoption in 2024. There are now over 1 million self checkout terminals installed globally. [4]
| Year | Total Self Checkouts | Growth Rate |
|---|---|---|
| 2019 | 324,000 | |
| 2020 | 525,000 | +62% |
| 2021 | 740,000 | +41% |
| 2022 | 1 million+ | +35% (est) |
The systems improve the shopping experience for 50% of consumers, leading to expanded implementations. [5] By 2025, over 20% of all checkout transactions globally will be via self service. [6]
Benefits Driving Adoption
There are several compelling benefits leading more retailers to invest in self checkout:
Faster checkout, reduced queues: Self service checkouts speed up transactions by giving control to the customer. Shorter lines translate to happier shoppers.
Lower labor costs: Staffing self checkout areas requires fewer associates than traditional registers. Labor is one of the largest controllable costs in retail.
Optimized store layouts: Removing belted registers creates space for drive-thru pickup, expanded categories, or self service kiosks.
Improved data visibility: Checkout systems provide transaction analytics, shopper insights, and inventory analytics unavailable with cashier-manned registers.
Enhanced customer experience: 50% of shoppers prefer self checkout, citing benefits like privacy, control, and perceived accuracy. [5]
Challenges to Consider
However, retailers must also be aware of potential pitfalls when implementing self checkout:
Theft and shrinkage risks: With less staff oversight, customers may fail to scan all items which leads to inventory loss. Certain systems are more theft-prone than others.
Technology failures: If systems go down, it can halt store operations. Keeping equipment updated and in good repair is imperative.
Learning curve for staff/shoppers: Employees will need training on managing self checkout areas. Consumers may also require education on properly using the systems.
Loss of personal touch: Some shoppers still prefer human interaction and may feel less personal connection without staffed registers. Retaining some traditional checkout lanes can help.
Best Practices for Implementation
To maximize the benefits of self checkout while minimizing risks, retailers should:
-
Start small then scale: Pilot a few self checkout lanes first to gauge performance before expanding.
-
Focus on user-friendly design: Well-designed, intuitive interfaces improve shopper satisfaction.
-
Retain staffed lanes: Keeping some traditional cashier lanes ensures customer choice.
-
Train staff: Invest in training staff to properly monitor self checkout areas and assist customers.
-
Promote benefits in-store: Use signage and staff to proactively educate shoppers on self checkout and build confidence.
-
Refine from data: Track self checkout usage metrics to continuously refine the systems and processes.
The Future of Automated Checkout
The future of automated checkout promises even faster and more personalized shopping experiences:
Computer vision and sensor tracking: Startups are developing computer vision powered systems to identify customers‘ shopping baskets and eliminate scanning needs altogether. Amazon Go pioneered this with "Just Walk Out" checkout free shopping.
Mobile self scanning automation: Using beacon technology and geofencing, retailers can automatically sync payment for items scanned in-app once a shopper leaves the store. Rapid adoption is expected.
Integrated loyalty programs: Customers can accumulate digital loyalty points and receive personalized promotions as they scan items at self checkout. This drives engagement.
Self-learning systems: With machine learning, self checkout stations can continuously improve. This reduces errors, speeds transactions, and heightens security over time.
Seamless payments: Retailers are integrating emerging payment methods like tap-and-go credit cards, eWallets, and cryptocurrency with self checkout for faster, more convenient payment.
Key Takeaways
This complete guide provided retailers with an in-depth look at the benefits, implementations, and future of self checkout systems:
- Multiple approaches optimize self service for different store formats
- Adoption is accelerating globally as both retailers and shoppers embrace self checkout
- When executed properly, self checkout reduces labor costs and checkout times while improving customer satisfaction
- Retailers must take steps to minimize risks like theft and usability issues
- Emerging technologies will continue advancing automated, frictionless retail experiences
With shopper expectations favoring speed and convenience, self checkout delivers. Blending self service options with staff support can help retailers maximize efficiency gains without sacrificing customer experience.
References
[1] Insider Intelligence. "60% Of Consumers Prefer Self Checkout"[2] RBR. "Self Checkout Shipments To Exceed 1 Million by 2025"
[3] eeNews Europe. “RFID Self Checkout Scans in 30 Seconds"
[4] IHL Group. "Self Checkout Global Installations Hit 1 Million"
[5] Juniper Research. "Half of Consumers Prefer Self Checkout"
[6] Bernstein. "20% of Transactions Will Use Self Checkout by 2025"
