Retailers reduce self-checkout use amid rising theft and errors

Major retail chains are increasingly scaling back or abandoning self-checkout systems due to financial losses, technical issues, and declining consumer satisfaction. Data from the Toast platform indicates that the percentage of small and medium-sized merchants using self-checkout dropped from 43% in 2025 to 36% in 2026.

A primary driver for this shift is increased shrinkage. According to a report by ECR Retail Loss, grocery stores saw an average 22% increase in merchandise loss during the first year after installing self-checkout stations. Furthermore, units utilizing these systems reported losses approximately 33% higher than stores without them. These losses stem from both intentional theft and unintentional errors, such as incorrect scanning or items being left unpaid.

Retailers are also facing consumer backlash. Many customers report feeling as though they are performing the labor of a cashier only to have their receipts checked upon exit, leading to feelings of constant surveillance. While some shoppers value the speed for small purchases, many others cite system freezes and weighing errors as significant frustrations. Consequently, many retailers are redirecting their technology budgets toward artificial intelligence and other advanced solutions rather than automated checkout.