From increasing the number of employees monitoring self-checkout machines to limiting the number of items purchased through self-checkout—these are just a few of the recent measures retailers across the country have introduced to their stores in efforts to combat the threat of loss, theft, and human error posed by self-checkout machines.
Some retailers have even installed additional security measures, such as cameras, to monitor shoppers during the self-checkout process. Initially implemented to speed up checkout time for shoppers, reduce the number of employees needed on the floor, and provide customers with added privacy and control of their purchases, have the pitfalls introduced by self-checkout machines outweighed the benefits?
What’s Prompting Retailers to Rethink Self-Checkout Machines?
Embraced by major retailers, self-checkout machines initially proved to be a timesaving and worthy investment. According to a 2023 survey of 2000 U.S. consumers, when asked the reasons why they used self-checkout machines, 62 percent cited the efficiency of the process, 44 percent enjoyed the shorter lines, and 19 percent cited social anxiety and privacy.
While initially appearing to be a win-win for both the shopper and the retailer, major retailers including Target and Dollar General have placed greater limits on their self-checkout systems, or ceased use altogether.
In the same 2023 consumer survey, 15 percent of self-checkout users confessed to purposely stealing at these machines. Further, even for the 21 percent of users who have accidentally taken a product without purchasing it, 61 percent kept it anyway. Despite their initial promise, self-checkout machines have proven to be a threat, rather than a boon, to profitability.
Embracing RAIN RFID
As such, major retailers such as Target have responded by limiting the number of items allotted per self-checkout purchase or increasing surveillance staff at machines and on the retail floor.
According to a survey by the National Retail Federation (NRF), internal and external theft accounts for nearly two-thirds of retailers’ shrink. In efforts to reduce shrinkage and maintain profitability, retailers are rethinking their operations and, for many, evaluating how technology can play an even bigger role in mitigating those risks.
When it comes to self-checkout, top retailers today are embracing RAIN RFID to both automate the checkout experience and better combat retail theft.
Driving Retail Innovation at Checkout
Critical to addressing some of the biggest pain points retailers face today when it comes to self-checkout is re-evaluating the systems they currently have in place. Going beyond traditional barcode scanning—still relied on by a large number of retailers today—RAIN RFID enables retailers to locate, identify, and authenticate any item through a compatible reader once products have been tagged.
Equipped to locate up to 1,000 items per second without direct line of sight, the deployment of RAIN RFID within stores means that retailers can know exactly which items are leaving the store and when.
This process has not only been instrumental in providing retailers with greater insight into their inventory but also in streamlining the overall checkout experience for shoppers and bolstering theft prevention.
Worldwide Deployment
For global retailers, including Inditex and Uniqlo, the critical item-level visibility achieved through the deployment of RAIN RFID within their stores and supply chains has not only improved the self-checkout experience for customers but has also streamlined loss prevention and inventory management.
From removing the need to rely on traditional security tags and barcode scanning to real-time inventory counts, with RAIN RFID Inditex and Uniqlo can more easily identify and respond to cases of theft and missing inventory as it occurs.
Further, with immediate access to critical product information at their disposal, the companies can also better manage their staff—identifying the areas where employees can be most beneficial on sales floors rather than monitoring checkout stations.
Responding to Retail Challenges
Maintaining profitability and reducing costs – all while creating an optimal customer experience – remains at the forefront of retailers’ minds. While perhaps best known as a technology for inventory and asset management, RAIN RFID offers a foundation upon which retailers can build new innovations.
Embraced by a growing number of major retailers, RAIN RFID is a powerful tool for responding to the dynamic challenges of the retail landscape, from loss prevention and inventory management to anti-counterfeiting and waste reduction.
With this item-level visibility, retailers stay informed about their inventory as items travel through warehouses and distribution centers to the sales floor and, ultimately, through checkout, offering game-changing insight across the retail supply chain.
