The end of the self checkout? Dollar General, Target and Walmart row back on self-service registers - but it's not because they care about customer service

They were introduced as a way to cut lines, boost efficiency in store and reduce staffing numbers - and boomed in popularity during the Covid-19 pandemic. 

But is the self checkout falling out of favor with big-name retailers? 

In recent weeks, Dollar General, Target and Walmart have all announced sweeping changes to automated registers in stores across the US. 

Experts say the rollback is linked, mostly, to fears around theft - as it is much easier for customers to shoplift items at the self checkout rather than a checkout with a cashier. 

But retailers say they are also trying to provide a better shopping experience for customers by imposing limits on self checkout, making the process quicker and easier.

Dollar General is among the retailers which have announced sweeping changes to automated registers in stores across the US

Last week, Dollar General announced it was pulling self checkout stands entirely from 300 of its stores with the highest level of shoplifting and mis-scanned items.

In 9,000 other locations it said it is converting some of its self checkout registers to regular cashier checkouts, and limiting self checkout purchases to five items or less in a further 4,500 stores.

The company said the changes would help reduce 'shrink'. This is the retail industry jargon for merchandise losses due to theft, damaged items and administrative errors. 

'We believe these actions have the potential to have a material and positive impact on shrink,' Dollar General CEO Todd Vasos said on a call with analysts Thursday. 

According to a study of retailers in the US, UK and other European countries, stores that had self checkouts had a loss rate of about 4 percent more than the industry average. 

'Most of the rollback of self-checkouts is due to retailer concerns over theft,' Neil Saunders, managing director of GlobalData, told DailyMail.com. 

'Theft rates at self-checkouts are reasonably high both because of deliberate actions and accidental mistakes. Forcing more customers to used manned checkouts resolves a lot of these issues and saves retailers money.' 

'Most of the rollback of self-checkouts is due to retailer concerns over theft,' said Neil Saunders, managing director of GlobalData

Self checkout lanes are also more vulnerable to customer errors while scanning or weighing items. 

Some produce - such as fruit, meat and freshly baked goods - do not have barcodes and need to be manually entered into the system. Customers can either intentionally or accidentally key in a cheaper product code creating losses for stores. 

A study last year by personal finance website LendingTree found 15 percent of self-checkout users admitted purposefully stealing from a machine.

This figure rose to 31 percent when analyzing Gen Z shoppers and 21 percent for millennials. 

Instead of cutting back on self checkout lanes entirely, Target last week announced it was limiting the number of items shoppers can buy at the automated registers. 

Following a trial in select stores across the US, Target has moved to 'express self checkout' at most of its 2,000 stores, meaning customers can only buy 10 items or fewer. 

The company also said it was opening more staffed cash registers in new locations. 

'Checking out is one of the most important moments of the Target run, and we know that a fast, easy experience - whether at self-checkout or the lanes staffed by our friendly team members - is critical to getting guests on their way quickly,' the company said in a statement.

Customers have long complained about snaking lines in store and long wait times to get help at a self checkout station if there is a technical glitch or an item needs to be approved by a staff member.

Target said it wanted to reduce wait times for customers and make shopping in store easier

Target has moved to 'express self checkout' at most of its 2,000 stores, meaning customers can only buy 10 items or fewer

Walmart, meanwhile, was forced to clarify after social media users claimed it had limited its self checkout lines only to those who have a Walmart+ membership - effectively forcing people to pay $98 a year to be able to use the service.

The company said stores generally have the self checkout open for both the general public and Walmart+ members. 

But some locations may choose to temporarily limit the automated registers based on customer flow, meaning there are times the only self checkout lines open are those reserved for Walmart+ members.

But this is down to the discretion of store managers, and is not a company directive, Walmart said. 

Despite these changes, retail expert Neil Saunders thinks it is unlikely that self checkout lanes will disappear entirely - although there will be a lot more restrictions around their use.

He added: 'Of course, the key thing is to ensure there are enough manned registers open to compensate. If retailers don't do this they will cause longer lines and wait times which will annoy customers.'