In a move signaling a broader industry re-evaluation, Dollar General has announced it is removing self-checkout systems from thousands of its stores.
This decision, affecting more than 12,000 locations, comes amid growing concerns about theft, operational inefficiency, and customer dissatisfaction. The retailer cited rising shrinkage and the challenges of monitoring self-checkout stations—particularly in smaller or lower-staffed stores—as key drivers behind the shift.
Instead, Dollar General will increase staffing at traditional manned checkout lanes in an effort to improve control and customer experience.
This development highlights a growing trend among retailers who are reassessing the value of self-checkout technology. Once heralded as a solution to rising labor costs and long queues, self-checkout has instead come under scrutiny for its vulnerability to theft and the frustration it causes both customers and store employees.
As the drawbacks of traditional self-checkout become more evident, many in the industry are turning to alternative technologies such as RFID systems and mobile-based scan-and-go applications, which promise greater efficiency and enhanced customer experiences.
The Decline of Traditional Self-Checkout
The proliferation of self-checkout began in earnest during the early 2000s, championed by major chains like Walmart, Target, and Kroger. The appeal was clear: reduce staffing needs and streamline the checkout process. However, over time, significant issues emerged.
Industry studies have shown that self-checkout lanes are more susceptible to both intentional and accidental theft. In some cases, retailers reported shrink levels increasing by over 30 percent due to mis-scanned items and limited employee oversight.
One prominent example is Wegmans, the upscale East Coast grocer, which discontinued its self-checkout mobile app in 2022. The company acknowledged that the honor system it relied on for scan-and-go transactions was not sustainable, as losses began to outpace the cost savings.
Similarly, in the United Kingdom, regional grocer Booths reversed course in 2023 by removing self-checkout machines from all but two of its stores. Booths cited both operational inefficiencies and customer dissatisfaction, noting that many shoppers preferred human interaction and experienced frequent issues with the machines.
Even large-scale operators like Walmart, which continues to utilize self-checkout terminals in many of its stores, have seen mixed results.
In some regions, Walmart has scaled back on self-checkout usage or reverted to staffed lanes to address theft and ensure smoother operations during peak hours. The labor savings from self-checkout have often been offset by the need to assign employees to monitor the kiosks, assist confused customers, and enforce scanning compliance.
RFID Technology Gains Ground
As traditional self-checkout loses favor, RFID technology is emerging as a powerful alternative, particularly among global retailers with the scale to absorb the upfront implementation costs.
Unlike barcode-based systems, RFID allows for wireless item tracking and identification, streamlining both inventory management and checkout processes.
Decathlon, the French sporting goods giant with a strong global presence, has led the way in RFID adoption. The company has tagged over 85 percent of its inventory with RFID chips, enabling shoppers to check out entire baskets of items simultaneously using RFID-enabled kiosks.
This system not only speeds up transactions but also improves stock accuracy and reduces human error, helping Decathlon triple labor productivity in several regions.
Fast Retailing’s Uniqlo brand has also embraced RFID as a foundational component of its checkout and inventory systems. Customers can place their selected items on RFID-equipped counters, where all products are scanned instantly without individual barcode interaction.
This reduces bottlenecks during peak shopping hours and enhances operational efficiency behind the scenes, as RFID data also supports automated inventory restocking and loss prevention.
Zara, the flagship brand of Spain’s Inditex Group, has similarly invested heavily in RFID across its global network. Zara uses the technology to bridge online and in-store operations, enabling real-time stock visibility and expedited fulfillment of online orders.
By integrating RFID into its omnichannel strategy, Zara can offer services like same-day pickup while maintaining tight control over inventory and reducing shrink.
Despite its advantages, RFID technology has yet to see widespread adoption among grocers and discount retailers, largely due to cost.
Tagging every item, especially perishables or low-cost goods, can be prohibitively expensive. Additionally, some consumers and privacy advocates have raised concerns about the potential for post-sale tracking, though most retailers deactivate RFID tags at checkout.
Scan-and-Go: Retail’s Mobile Future
Another emerging solution is mobile-based scan-and-go applications, which empower customers to scan items using their smartphones as they shop and pay directly through an app.
This model eliminates the need for fixed checkout lanes and is gaining traction among big-box and membership-based retailers seeking to modernize their store formats.
Sam’s Club, owned by Walmart, has taken the most aggressive approach. In 2024, the warehouse chain began eliminating all self-checkout lanes across its nearly 600 U.S. stores, shifting entirely to its proprietary Scan & Go mobile app.
Shoppers scan items as they place them in their carts and finalize payment within the app. At the exit, artificial intelligence systems verify purchases by comparing scanned items to the cart’s contents, reducing the risk of fraud and improving throughput.
Costco, another membership club, recently confirmed it is piloting a scan-and-go system in select stores. The move comes in response to member complaints about long lines at peak times.
The retailer, known for its cautious approach to operational changes, sees mobile checkout as a way to preserve its low-overhead model while enhancing the customer experience.
Walmart, which owns Sam’s Club, has adopted a hybrid approach. While Scan & Go is available through its mobile app, Walmart still requires customers to scan a QR code at a self-checkout kiosk to complete the transaction.
This serves as both a technical and behavioral transition step, ensuring compliance and enabling monitoring before potentially moving to a fully mobile system in the future.
However, scan-and-go technology is not without its challenges.
Retailers must ensure the systems are intuitive and accessible, particularly for older or less tech-savvy customers. There is also a digital divide concern, as not all shoppers own smartphones or are comfortable navigating app-based purchases.
Moreover, to maintain low shrink levels, most scan-and-go implementations require some form of exit validation, either through AI surveillance or manual checks by store associates.
The Road Ahead
The retail checkout landscape is undergoing a fundamental transformation. As the industry phases out legacy self-checkout kiosks, new technologies such as RFID and scan-and-go are taking their place.
While these innovations require significant investment and operational changes, they offer the potential for faster, more secure, and more personalized shopping experiences.
Dollar General’s decision to walk away from self-checkout marks a turning point in how retailers evaluate technology’s role in customer interaction and store security. The company’s pivot may not just be a reaction to operational strain but a strategic acknowledgment that the future of checkout lies not in automation alone, but in smarter automation — where intelligence, mobility, and customer-centric design take precedence.
As more retailers follow suit or blaze their own paths toward checkout innovation, one thing is becoming clear: the era of the impersonal, error-prone self-checkout terminal may soon be coming to an end.
In its place, a new model is emerging—frictionless, intelligent, and designed for the needs of a diverse, tech-savvy consumer base.
