Self-checkout: Customers either love or hate it.
These polarizing opinions make it difficult to decide whether self-checkout is the right fit for your grocery store.
On one hand, it can shorten checkout lines and help you compete with big-box supermarkets. On the other, it could dim your small business’ sparkle and lead to sky-high shrinkage.
In this blog, we’ll dive into the pros and cons of self-checkout in grocery stores to help you make the best choice for your business and customers. Plus, we’ll show you how to get started and how much to budget for self-checkout technology.
The Benefits of Self-Checkout in Grocery Stores
Self-checkout has become the go-to for grocery giants like Walmart, Harris Teeter, and Publix — but why? In this section, we’ll explore three key benefits of adopting self-checkout in your grocery store.
1. Shorter Checkout Wait Times
Shorter lines are the main appeal of self-checkout. Instead of waiting for a cashier to become available, your customers can take the checkout process into their own hands, ringing up their items and paying independently.
Most grocery stores that use self-checkout technology have multiple self-checkout stations, allowing several customers to check out at the same time. This is much quicker than utilizing one traditional cash register operated by one cashier.
These shorter wait times let you serve more customers in less time, leading to higher revenue and happier shoppers.
2. Lower Labor Costs
Self-checkout can also reduce your grocery store’s labor costs. Instead of hiring an entire team of cashiers to work behind traditional cash registers, you can assign one or two team members to watch over your checkout machines.
Since your customers will do the heavy lifting when it comes to ringing up their items, these team members stand by to answer questions and guide confused shoppers through the self-checkout process.
You can use the savings to hire more employees to manage specialty departments, increase your marketing budget to attract more shoppers, or simply boost your grocery store’s bottom line.
3. Appeal to Busy Customers
Today’s busy customers don’t always have time to wait in line and make small talk with your grocery store’s cashiers — which is why they often opt for self-checkout when it’s available.
Adopting self-checkout can make your grocery store a haven for customers on the go. Whether they’re between errands or on their lunch break, shoppers know they can pop in, find what they’re looking for, and check out on their own time.
The Downsides of Self-Checkout in Grocery Stores
Self-checkout slashes checkout wait times and staffing expenses — but what’s the catch? Let’s look at three downsides to consider before investing in self-checkout for your grocery store.
1. Increased Theft and Shrinkage
Unfortunately, self-checkout and shoplifting often go hand in hand.
Self-checkout stations give thieves more opportunities to engage in behaviors like skip scanning and sticker switching, which allow them to take home high-ticket items like cheese and meats without paying full price or at all.
Without safeguards like security cameras and careful supervision from your team members, self-checkout-related shoplifting can take a heavy toll on your grocery store’s profits.
2. Less Human Connection
The traditional cashier-led checkout process provides several opportunities for connection. Your cashier and customer can exchange greetings, make small talk, and connect over the checkout counter.
Self-checkout stations exchange this human interaction for speed and convenience, which can frustrate customers — especially if they aren’t comfortable navigating new technology.
If you invest solely in self-checkout machines instead of offering a choice between self-checkout and traditional cashier lanes, you may lose a few loyal customers.
3. Higher Technology Costs
While self-checkout might save your grocery store money in the long term by cutting labor costs, it does require an upfront investment.
You’ll have to purchase self-checkout machines, install security cameras, and invest in self-checkout point of sale (POS) software.
These costs can have a short-term but significant impact on your grocery store’s bottom line.
Getting Started With Self-Checkout
You’ve decided that the pros of adopting self-checkout in your grocery store outweigh the cons. Now what?
While some technology providers like Toshiba and Fujitsu offer standalone self-checkout machines, your best bet is to find an all-in-one grocery POS solution that includes a seamless self-checkout solution.
This approach makes setting up your kiosks a breeze and ensures that self-checkout sales are always included in your inventory and sales records. Plus, you can see your self-checkout and cashier activity from one platform, making it easier to spot shoplifters and fraud.
Relying on a single provider for your POS software, hardware, and self-checkout technology can also help you save money! For example, if you partner with IT Retail, we offer integrated self-checkout machines for less than $5000.
Enjoy Checkout Flexibility With IT Retail
We’ve got you covered — whether you plan to invest in self-checkout technology, want to stick with cashier lines, or are on the fence.
IT Retail is an all-in-one grocery store POS solution designed for traditional checkout counters or self-checkout stations, so you can choose what’s best for your grocery store’s unique needs. Plus, our powerful software includes all the features you need to manage perishable inventory, build customer loyalty, and grow your business.
Start your IT Retail journey by scheduling your personalized demo today.
