Target joins retailers in scaling back self-checkout lanes


Summary

Target reducing self-checkout lanes

Target is reducing self-checkout lanes after internal testing showed it improves customer satisfaction, though analysts also cite theft concerns as a key factor.

Industry-wide trends

Walmart has removed self-checkout in select stores, citing customer and employee feedback, while Sam’s Club plans to eliminate traditional checkouts in favor of app-based, AI-verified purchases.

Retail theft is growing

Retail theft is a growing issue, with U.S. retailers losing an estimated $112.1 billion to shrink in 2022 and shoplifting in New York City rising 64% from 2019 to 2023.


Summary

Target reducing self-checkout lanes

Target is reducing self-checkout lanes after internal testing showed it improves customer satisfaction, though analysts also cite theft concerns as a key factor.

Industry-wide trends

Walmart has removed self-checkout in select stores, citing customer and employee feedback, while Sam’s Club plans to eliminate traditional checkouts in favor of app-based, AI-verified purchases.

Retail theft is growing

Retail theft is a growing issue, with U.S. retailers losing an estimated $112.1 billion to shrink in 2022 and shoplifting in New York City rising 64% from 2019 to 2023.


Full story

Target is scaling back its use of self-checkout lanes, becoming the latest major retailer to pull back on the technology amid concerns over theft and customer satisfaction. A spokesperson for the Minneapolis-based company told Fox News Digital the change has been in development for over a year. Back in March of 2024, Target implemented a 10 items or less rule.

The decision was driven by internal testing, which showed that limiting self-checkout use led to improved customer satisfaction.

But some industry analysts say theft is also playing a role. “Self-checkout is an area of the store where people can steal things,” Neil Saunders, managing director at GlobalData Retail, told CBS News. “Retailers like Target are cutting back in an effort to reduce shrink-related losses.”

In a statement emailed to Straight Arrow News, a spokesperson for Target said the chain is not removing self-checkout. “We offer it in the vast majority of our stores and have no plans to change this,” the spokesperson said.

Other major chains are making similar moves. Walmart has removed self-checkout kiosks at several locations, including stores in Shrewsbury, Missouri, and Cleveland. A spokesperson said the changes were based on feedback from customers and employees, and are intended to improve service by reintroducing more staffed lanes.

Sam’s Club, also owned by Walmart, is taking a different approach. The warehouse chain plans to phase out traditional checkouts across its roughly 600 locations. Instead, shoppers will scan items using an app while shopping, and an AI-powered system will verify purchases as they exit –– eliminating the need for manual receipt checks.

When the self-checkout kiosks first rolled out in 1987, developers said it helped to solve the biggest complaint from shoppers: long checkout lines.

Retail theft has become an escalating concern across the U.S. According to the National Retail Federation, U.S. retailers lost an estimated $112.1 billion to theft in 2022. In New York City, shoplifting reports rose 64% between 2019 and 2023, according to the Council on Criminal Justice.

This article was updated May 5 to include a statement from Target.

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Why this story matters

Major retailers adjusting their approach to self-checkout highlights evolving challenges in customer service, retail theft, and technology integration within the retail industry.

Retail theft

Concerns over increasing theft and related financial losses are influencing decisions to limit or modify self-checkout options.

Customer experience

Improving customer satisfaction is a key factor leading companies to reevaluate how checkout systems are implemented.

Technology adaptation

Retailers are experimenting with new technologies, such as app-based scanning and AI verification, while reassessing previous solutions like self-checkout kiosks.