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In a shift from the expected trend towards automation, several retailers across Canada and the U.S. are removing self-checkout stations due to increasing theft and negative customer feedback. This reversal is highlighted by actions from big box stores like Walmart and Giant Tiger, which have started eliminating these systems in various locations.
Originally introduced to reduce labor costs and improve efficiency, self-checkouts have instead led to financial losses linked to theft and have required continuous monitoring by staff, negating the anticipated cost savings. The Retail Council of Canada has noted a rise in thefts at self-checkout stations, often involving high-value items targeted by organized crime groups.
The move away from self-checkout is also driven by customer preference for human interaction, as noted by store owners like Scott Savage of Giant Tiger in Stratford, Ontario. His decision to remove self-checkout machines was based primarily on feedback from his senior customers who preferred traditional cashier service.
This trend raises questions about the future of retail automation and the balance between technological advancements and customer satisfaction. As retailers navigate these challenges, the industry may see more nuanced approaches to integrating technology that still prioritize customer and employee engagement.