Target ditches self-checkout after surge in shoplifting losses
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Self-checkout is checking out, and Target shoppers are not happy about it.
Target has pulled the plug on many of its self-checkout machines. The retailer announced it will now limit self-checkout to customers with 10 items or fewer. Those with fuller carts will be directed to staffed checkout lanes, which the company says it is expanding to improve efficiency.
According to Target, internal pilot tests showed the new policy improved speed and customer satisfaction at select stores.
But industry experts say theft is a major reason behind the shift.
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Customers using self-checkout kiosks at Target in Manhattan, N.Y. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)
Target has been grappling with staggering losses due to what retailers call “shrink,” a term that includes shoplifting and inventory errors. In 2023, the company reported nearly $500 million in shrink-related losses compared to the previous year, according to Business Insider.
In one dramatic case that captured national attention, a California woman was convicted of stealing over $60,000 in merchandise from Target stores by using self-checkout machines during a 100-visit crime spree. ABC7 News reported that she would scan items, insert a small coin or bill, and simply walk out the door.
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GlobalData retail analyst Neil Saunders told CBS News self-checkout “is an area of the store people can steal things” and that retailers like Target are scaling it back to reduce theft-related losses.
Shoppers are not taking the change lightly. Social media platforms and forums have erupted with complaints about long lines and dwindling convenience.
Busy self-checkout at a Target Store in Queens, N.Y. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)
A Reddit user named @jxbermudez72 posted a photo of a local store with a gaping space where self-checkout machines once stood.
“The Target I live near completely got rid of self checkout,” the user wrote.
On X, another shopper vented, “Target is turning into Walmart. Sixteen lanes. One cashier. Mile-long line for self-checkout. Why?!”
Many customers say they prefer the autonomy and speed of scanning their own items. One Redditor wrote, “That’s a shame. I hate having to go through a manned register. I prefer self-checkout every time.”
Despite the backlash, Target is not the only retailer taking a red pen to self-checkout.
A customer at the self-checkout of a Target store in Queens, N.Y. (Bing Guan/Bloomberg via Getty Images / Getty Images)
Walmart has removed self-checkout machines from select locations, including stores in Shrewsbury, Missouri, and Cleveland. A company spokesperson said these decisions were based on customer and employee feedback and that replacing kiosks with staffed lanes would improve service quality.
Dollar General has also scaled back. The company announced in April it would eliminate self-checkout from 300 of its stores with the most theft. At other locations, it is limiting self-checkout use to five items or fewer.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TGT | TARGET CORP. | 97.37 | +1.40 | +1.46% |
Meanwhile, Five Below is phasing out self-checkout almost entirely. As CEO of Five Below in 2024, Joel Anderson said during an earnings call that most locations would be using associate-assisted checkouts, especially those prone to theft. The company is also adding receipt checks, more staff and security guards. Anderson has since resigned from the company.
According to the National Retail Federation, U.S. retailers lost an estimated $112.1 billion to shrink in 2022. In New York City, shoplifting reports jumped 64% from 2019 to 2023, based on data from the Council on Criminal Justice.
Shopping carts outside a Target store in Albany, Calif. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
Online marketplaces like eBay and Facebook Marketplace have fueled the resale of stolen goods. These platforms, along with unregulated pawn operations, have created a booming shadow economy that feeds off organized retail theft.
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During the height of the COVID-19 pandemic, self-checkout machines saw a surge in use because customers sought minimal contact with others. But now that the public health emergency has faded, so has the appetite for unmonitored checkout kiosks. Many retailers appear to be prioritizing shrink reduction over self-service convenience.
Target did not immediately respond to FOX Business’ request for comment.
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