As self-checkout technology becomes less favored, Target has unveiled a new policy that significantly alters its checkout process. Effective immediately, the retailer has restricted the use of self-checkout kiosks to customers with ten items or fewer. This decision is part of an effort to clamp down on theft while enhancing service efficiency for shoppers.

Policy Changes Driven by Theft Concerns

Target’s decision follows extensive internal testing that revealed improved customer satisfaction when limiting self-checkout use. However, the primary impetus behind this shift appears to be the retailer’s ongoing struggle with so-called “shrink” — a term encompassing losses from shoplifting and inventory discrepancies.

In 2023, Target reported losses nearing $500 million attributed to shrink, an increase from previous years. This alarming trend has led industry analysts, like Neil Saunders from GlobalData, to suggest that the rise in self-checkout theft is prompting Target and other retailers to rethink their self-service strategies.

Rising Shoplifting Incidents

The phenomenon of organized retail theft has surged recently. Notably, in a single high-profile case, a woman in California was convicted of stealing over $60,000 worth of merchandise by exploiting self-checkout kiosks over a span of multiple visits.

According to reports, the ease of scanning items and then using various means to avoid payment has made self-checkout a target for theft. The challenges faced by Target mirror broader trends across the retail sector, where losses from theft in the U.S. amounted to an estimated $112.1 billion in 2022, as indicated by the National Retail Federation.

Customer Reactions to Changes

Customer feedback has been mixed following the implementation of these new policies. Social media platforms showcase growing dissatisfaction, with many shoppers expressing frustration over longer wait times and decreased convenience. One Reddit user noted a store missing self-checkout machines entirely, reflecting a broader sentiment of disappointment.

Comments range from lamentations over losing the convenience of self-service to outright dissatisfaction with long lines at staffed checkouts. As one shopper articulated, “I prefer self-checkout every time,” highlighting the crucial role of convenience in modern retail shopping experiences.

Industry Trends and Broader Implications

Target is not alone in this decision. Competitors, such as Walmart and Dollar General, have also scaled back self-checkout options. Walmart has removed kiosks from specific stores based on employee feedback, aiming to improve service quality. Similarly, Dollar General has limited self-checkout usage in several locations, capping item numbers to combat theft.

Five Below has expressed intentions to phase out self-checkout entirely, with a shift towards associate-assisted checkouts, particularly in theft-prone areas.