Why Self-Checkout Isn't the Revolution You Think It Is

A recent article from Canadian Grocer titled "The Rise of Autonomous Shopping" paints a picture of self-checkout as an exciting, customer-driven evolution in the retail landscape. It highlights Kantar’s ShopperScape study, which claims that Canadians are increasingly embracing self-checkout lanes, driving changes in impulse purchasing and QR code usage. But let’s not get ahead of ourselves. While technology undeniably has its place in the modern retail experience, the article overlooks a crucial reality: this "shift" towards autonomous shopping is more about necessity than preference. If I were to title the article, it would be "Good Luck Finding a Human to Serve You."

The Context: COVID-19 and Labor Costs

To fully understand the rise of self-checkout, we need to look back at two critical catalysts: the COVID-19 pandemic and the sharp increase in hourly wages. The pandemic forced retailers to reduce human interaction, and with rising wages, the economic appeal of reducing labour costs became irresistible. The proliferation of self-checkout isn’t limited to grocery stores. Major hard goods retailers like Home Depot saw the number of staffed lanes shrink from seven or nine to just two, with the majority converted to self-checkout. Walmart Canada followed suit, installing over 30 self-checkout units in many locations.

But let's be clear: this isn't a triumph of consumer preference—it’s a direct response to operational pressures. It's about cutting costs, not enhancing the customer experience.

The Myth of Preference

The Canadian Grocer article frames the generational divide—millennials and Gen Z supposedly preferring self-checkout while boomers cling to staffed lanes—as a key insight. However, this oversimplifies the issue. The truth is, in many locations, customers don't have a real choice. Walk into a Walmart or Home Depot today, and you'll be hard-pressed to find more than a couple of staffed checkout lanes. Sure, you might “prefer” self-checkout when it’s the only realistic option. That’s not a shift in preference; it’s a lack of alternatives.

This leads us to a deeper question: Are retailers embracing self-checkout to serve their customers better, or are they simply managing labour costs at the expense of customer satisfaction?

Self-Checkout and Impulse Purchases: A Design Flaw or Intentional Strategy?

The Canadian Grocer article cites Kantar's finding that self-checkout lanes are driving more impulse candy and gum purchases than staffed lanes. But this isn’t a happy accident; it’s a deliberate design. Retailers have long known that impulse purchases near the checkout can boost revenue. So, it’s no surprise that self-checkout units are often surrounded by a clutter of low-cost, high-margin items. The lead-up to the machines is strategically designed to drive quick decisions, and more often than not, it’s stocked with junk.

Walmart, in particular, has turned these areas into a treasure trove of cheap, unhealthy snacks—hardly a win for the consumer. The design here isn't about improving the shopping experience; it’s about squeezing out more revenue while reducing staffing costs.

The Real Question: Who Benefits?

Yes, technology can—and should—play a role in enhancing the shopping experience. But retailers need to ask themselves: Am I implementing this technology to genuinely enhance customer satisfaction, or am I just trying to reduce labour costs? There’s a fine line between introducing technology that empowers customers and forcing it upon them because it’s cheaper for the business.

The reality is, great customer experience still matters more than technological novelty. Shoppers want to feel like their needs are being met, whether through a seamless digital interaction or a human touch. Retailers who prioritize convenience over experience run the risk of alienating their customers. Self-checkout may offer a quick solution, but it doesn't replace the value of personalized service.

Conclusion: Technology Should Serve, Not Replace

The rush toward self-checkout isn’t driven by a profound consumer desire for autonomy—it’s driven by cost-cutting and operational efficiencies. And while self-checkout has a place in today’s retail environment, let’s not pretend that shoppers are clamoring for this experience. Retailers must be cautious not to confuse the absence of choice with preference. Embracing technology is critical for future-proofing your business, but jamming it down the throats of customers under the guise of “autonomy” is a dangerous game.

In the end, the focus should always be on enhancing the customer experience. If your technology strategy isn't aligned with that principle, you might be winning the cost battle but losing the loyalty war. And here's the reality: If a retailer forces me to use self-checkout every time I visit their store, I might as well shop online from the comfort of my home—likely using Instacart. Congratulations, I just abandoned your brand.