08/12/2024 | Press release | Distributed by Public on 08/12/2024 17:57
In recent years, self-checkout has evolved from a supplementary feature to a core component of the retail experience, transforming how customers shop. According to the RBR 2024 Global Self-Checkout report, 2023 was a record year for self-checkout shipments, particularly to Western Europe, highlighting its growing importance in retail. Self-checkout offers improved efficiency, increased accessibility, and more checkout lanes without the additional labor costs. However, for store owners and managers, self-checkout can also increase vulnerability around merchandise loss-often referred to as "shrink."
Traditional loss prevention methods utilize alert-based deterrents as a foundational approach to this problem, which increases obstacles to theft and often leads to improved shrink results across the store. However, when applied to self-checkout, this approach has several critical flaws:
Understanding the distinction between unintentional and intentional theft is crucial for effective prevention at self-checkout as it will impact every shopper. Dr. Emmeline Taylor from the Department of Sociology at City, University of London, introduced the term "swipers" to describe seemingly well-intentioned patrons who engage in routine shoplifting. These individuals might accidentally leave the store without paying for something and, upon realizing how easy it is, continue to exploit the system by stealing. They might also justify their actions due to negative in-store experiences or as compensation for price increases or reduced staff.
Traditional loss prevention strategies often fail to address swiper behaviors. With the added pressure of global increases to cost-of-living, there's an increased risk of first-time scammer behaviors in the self-checkout zone. This trend is compounded by social media reinforcing the ease and social acceptability of this challenge at a scale faster than the retail industry can contain it. Addressing this requires a blend of solutions, including AI technology such as NCR Voyix's PickList Assist and Everseen , and operationalized targeted shrink training that delivers exceptional customer service. A simple smile, a friendly greeting, prompt issue resolution, and a warm goodbye can significantly impact customer behavior, turning potential losses into positive interactions and limiting further risks. By focusing on combined solution strategies, retailers can effectively combat both accidental and intentional shrinkage, enhancing the overall self-checkout experience rather than chasing the moving risk around the self-checkout area.
As recent insights indicate that swiper behavior is increasingly common, retailers are paying more attention to the vulnerabilities in their systems. Retailers who use combined solutions with AI technology globally are seeing up to 5% of transactions include at least one of these the most common behaviors listed below. These statistics reflect the significant challenge retailers face in preventing customers from leaving the store without paying for all their merchandise, either accidentally or on purpose, even when they are habitual shoppers and potentially familiar with the interface. Correctly addressing loss-prevention at self-checkout requires innovation, informed by the full range of shopper behavior.
Non-scanned items represent the biggest challenge and highest volume of loss in self-checkout, often accounting for over 60% of the problem. Whether shoppers are intentionally or unintentionally not scanning items, 3% of transactions include unscanned merchandise, leading to significant lost revenue but also presenting an opportunity for improvement both for customer and staff members as well as improving bottom line profitability.
The multiple use of PLUs (Price Look-Up codes) is a common issue where customers use the code for one item to ring up a different item. For example, a customer might use the code for onions or potatoes to scan various items that in some cases cost significantly more. This behavior, whether intentional or due to genuine mistakes, often goes unnoticed, leading to substantial revenue loss and inventory inaccuracies.
Additionally, operationalized shrink training aligned with mobile RAP (Remote Attendant Program) solutions equips and empowers self-checkout hosts with the skills needed to recognize and address additional bad behaviors. This combined approach of technology and human vigilance can significantly reduce the occurrence of PLU-related shrinkage, whether intentional or unintentional.
A walk-off when a customer initiates checkout at a self-checkout lane but leaves before paying. This can happen due to genuine oversight, technical issues like a payment timeout or intentional theft. Sometimes, customers can take unpaid merchandise with them, representing a direct loss. Even when merchandise is left behind, it requires employees to collect and restock those items, leading to operational inefficiencies.
The first step to addressing these common sources of risk at self-checkout is to understand them. Then, with the combination of the strategic solutions highlighted in this article, such as PickList Assist and Connected Associate from NCR Voyix , as well as Everseen and ITab exit gates, and the added layer of well-trained customer service teams, retailers can create a robust defense against both accidental and intentional shrinkage.
We invite you to visit our headquarters to see these technologies in action or contact us to learn more about how our integrated approach can enhance your self-checkout experience, benefiting both your customers and your bottom line.