Woman scanning an item at a self-checkout station in a store
Photo: Canva

Kroger converted a store in Tennessee to self-checkout only, following its first test of a cashierless concept in Dallas in 2021.

A Kroger spokesperson told WKRN that the location in Franklin, about 20 minutes from Nashville, was converted because of the rate of customers already using self-checkout. “These allow our customers to scan and bag their own items,” she said. “It’s a fast, friendly experience.”

To accommodate larger orders, “new wide belt lanes,” which have bagging stations at the end, have been added, NBC-affiliate WSMV 4 reported.

Staff members are available to help customers with problems, with no jobs eliminated as part of the conversion. Another Tennessee store will be similarly converted later this year.

Among other retailers, Walmart and Dollar General are also both piloting exclusively self-checkout stores, while Amazon continues to test its “Just Walk Out” technology largely at Amazon Fresh and Go locations.

Last fall, Albertsons began testing a self-checkout-only store in Boise, Idaho, that guides customers to self-checkouts based on their basket size: 10 items or fewer, around 15 items, and 20 items or more. Hy-Vee has also converted many of its stores to primarily self-checkout stations, with the terminals able to be converted to manned checkout when busy.

Self-checkout options increased during the pandemic due to social distancing concerns and advances in automation, as well as to help retailers better manage high labor shortages and costs. For customers, self-scanning can reduce wait times.

VideoMining’s Front End MegaStudy found that self-checkout registers have now become the dominant checkout format for grocery stores, “with its share of transactions rising to 55% in 2022.”

A Reddit discussion on the conversion of the Franklin Kroger store found a few preferring self-checkout, but most people griped about technical difficulties and challenges purchasing many items.

“Self checkouts are almost never self checkouts,” one Redditor wrote. “They’re glitchy … the scales in them often cause disruptions in the process, [and] if you buy alcohol, OTC meds, etc., you need someone to help you. If you have more than 10 items the chances of a machine glitching out and you needing an override or ID check, etc. go up to like 100%. They’re annoying.”

BrainTrust

“Until scanless, just walk out, technology is perfected and cost effective, I see the need for some staffed lanes to avoid alienating some customers – just like airports.”

David Naumann

Marketing Strategy Lead – Retail, Travel & Distribution, Verizon


“The tech that powers self-checkout systems is getting better and smarter every day, especially as new AI models are embedded in software that runs the machines.”

David Spear

VP, Professional Services, Retail, NCR


“Registers are inefficient and they are costly to staff. Retailers will reduce and eliminate them as far as they can, albeit while having to keep customer service in mind.”

Neil Saunders

Managing Director, GlobalData

Discussion Questions

DISCUSSION QUESTIONS: Do you see self-checkout-only stores becoming more common over the next three to five years? Are the benefits of self-checkout for retailers and customers now outweighing the drawbacks?

Poll

What’s the likelihood that self-checkout-only stores will become more pervasive over the next three to five years?

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24 responses to “​​Does Kroger Face a Self-Checkout-Only Future?”

  1. Mark Ryski Avatar
    Mark Ryski

    As self-checkout technology improves – and it is improving despite the complaints – we will see more self-checkout only stores as retailers experiment with the minimal labor model approaches. The benefit of self-checkout for retailers is simple – save money on labor. Period. Ultimately, shoppers decide if they like self-checkout or not and they will make decisions on where to shop. Self-checkout is a big part of retailing today and it will only get bigger as the technology improves.

  2. Neil Saunders Avatar
    Neil Saunders

    Self-checkout still divides opinion. Some love it. Others hate it. However, I think the general direction of travel is that we will see more and more self-checkout lanes introduced in stores. And we will also see more technology to enable customers to just walk in, in some form or another. The bottom line is that registers are inefficient and they are costly to staff. Retailers will reduce and eliminate them as far as they can, albeit while having to keep customer service in mind.

    1. David Naumann Avatar
      David Naumann

      Excellent points Neil! Not everyone loves self-checkout and some dislike it so much that if that is the only option, they may choose to shop elsewhere. Stores have continued to increase the number of self-checkout lanes in proportion to staffed lanes, but personally, I think they should have at least one staffed lane for the customers that “demand” it. Until scanless, just walk out, technology is perfected and cost effective, I see the need for some staffed lanes to avoid alienating some customers – just like airports.

  3. Gene Detroyer Avatar
    Gene Detroyer

    Despite the fact that I have observed in my local Whole Foods that shoppers will wait for self-checkout, even when a manned checkout is available, I am surprised by the acceptance that Kroger and others are finding. Is this a case of “the future is now”?

    The key to ultimate success is the technology. I now conclude that the reticence of shoppers to use it is they are intimidated by the technology and its hiccups. If all those are fixed, the conversion will be faster. It is up to the retailers to make it happen.

  4. Ken Morris Avatar
    Ken Morris

    Well, the key question with self-checkout (SCO) is “can you afford the shrink?” This will work with certain demographics, but not all. I was in a Stop & Shop last night at 7 p.m. and they only had one cashier lane open. All eight SCO stations were open and in use. Though many shoppers think SCO is annoying, with a bit more work on the UX it will be ubiquitous. Loss prevention is the biggest challenge, but video analytics has not yet conquered that challenge. Long story short, if you make it too easy, they will steal.

    Now, Amazon Go’s just-walk-out technology works because it’s a combo of very limited SKUs and almost unlimited technology. But they still only have one “full size” store, and that’s still a fraction of the square footage of a Whole Foods store, for example. I think what chains can take from the Amazon Go model is that technology can and will enable more automation and self-service at checkout. Don’t listen to the PR spin on “no cashiers left behind.” That is, of course, the whole point. (Along with faster checkout and greater throughput, that is.)

    1. Gary Sankary Avatar
      Gary Sankary

      Shrink is the elephant in the room when it comes to self-checkout. Wegmans cited uncontrolled shrink as the reason they’ve walked away from it. Target has reported a significant rise in its shrink in the last two years. They blame ORC, but I have to believe that rise, at some level, correlates with their expanded roll-out of self-checkout. (I sure miss the “threes a crowd” policy for opening new check lanes.
      Self-checkout is clearly here to stay, no question. I suspect it will continue to grow in the discount segment, while full-service, higher-end retailers will find a number of their customers aren’t interested in self-checkout and bagging their own groceries.

      1. Steve Montgomery Avatar
        Steve Montgomery

        Agree Two sides of the theft triangle are opporunity and lack of detection. Self Check out provides both.

  5. David Spear Avatar
    David Spear

    Technology is continually improving and the tech that powers self-checkout systems is getting better and smarter every day, especially as new AI models are embedded in software that runs the machines. My personal experience with self-checkout has always been extremely good, with minimal disruptions. Given the percentage of self-checkout now at 55% in grocery, I would say that others feel the same. With this in mind, I think the number for large grocery chains could easily get to 70% in the next few years. For smaller, niche retailers, assisted checkout will be the preference for a variety of business model and experience-related reasons.

  6. Bob Amster Avatar
    Bob Amster

    More common, yes. Ubiquitous, no. This self-checkout-only format is but the extension of a test. In five years we may see some number of stores in a chain use self-checkout only and, then, only in areas where the customer has indicated by their usage, that they prefer it to manned lanes. As to the alleged increase in use to 55% of transactions, I am skeptical.

    1. Gene Detroyer Avatar
      Gene Detroyer

      Bob, I don’t think you would be skeptical at all if you observed the checkout behavior in my local Whole Foods.

    2. Richard Hernandez Avatar
      Richard Hernandez

      55% is a high number. Stores that pride themselves on customer service will never completely do away with manned lanes. Additionally, they are willing to accept a higher than average shrink number to improve labor hours- I don’t know if that is an acceptable trade. I would love to see this store at Thanksgiving time…

      1. Gene Detroyer Avatar
        Gene Detroyer

        At Thanksgiving, it is likely that more shoppers will go to manned lanes because the line is too long for the SCO.

  7. Dick Seesel Avatar
    Dick Seesel

    There is a parallel to the conversion from manned gas stations to self service many years ago. (That is, unless you live in New Jersey.) There was a learning curve involved in drivers figuring out how to dispense fuel into their own cars, but the technology became ubiquitous in a short time.

    I think we’re seeing the same thing happening in grocery stores, although there are still times when a manned checkout lane is helpful and appropriate. (Scanning a box of cereal is easy, figuring out how to scan and weigh fresh produce is more challenging.) My local Kroger store has also added conveyer-belt SCO lanes for bigger shopping carts but is still maintaining 2-3 manned checkout lanes for those who need them.

  8. Doug Garnett Avatar
    Doug Garnett

    This just seems a very bad idea. Howard Schultz invested in his employees because he saw the tremendous value they added through their short interactions with customers. What are all these stores thinking? It’s the weakest understanding of how business works – one entirely mechanical which views not only employees but customers as efficiency machines without souls. Let’s hope sanity returns to retail at some point.

  9. Shep Hyken Avatar
    Shep Hyken

    Self-checkout has been an experiment thus far. It is an option many consumers love, and others stay away from. Until it is as easy as the Amazon “Just Walk Out” technology, it will be similar to the airlines. Most people choose to book their own flights, but there are always customer service agents willing to book the flight for you. And they are there for those that go self-service first but then need help. Even if the store does convert to 100% self-checkout, that doesn’t mean there won’t be helpful employees standing by for the customer that struggles with the technology.

  10. BenedictEnterprisesLLC Avatar
    BenedictEnterprisesLLC

    Going to a 100% Self Checkout scheme without the benefit of checkout-free technology (i.e. Amazon Go) seems like an inherently bad move given current consumer sediment on the topic, as well as the removal of “choice” from the consumer to use or not use self-checkout.

    Granted, Kroger is positioning this as a test but given the opposition to their merger from organized labor, the timing is a bit questionable as well.

    Time will tell how this story unfolds, but I hear that the customer is always right…

  11. Mark Self Avatar
    Mark Self

    More common, much more common for stores associated with smaller basket sizes. This is not a “new” trend–I visited a self checkout only store in Europe well over 15 years ago. The economics are right for the store as long as you can manage the length of time people need to wait. Good for Kroger for taking the first step here.

  12. Craig Sundstrom Avatar
    Craig Sundstrom

    As it often does, the Poll almost forces us into an answer: of course they’ll be more prevalent, as only complete disappearance would be less so. I don’t think they’ll become “pervasive” however, for the many reasons mentioned on the ‘Reddit’ post(s). Particularly notable is the claim “with no jobs eliminated as part of the conversion.” Really ?? I would posit that either the statement is (ultimately) untrue, or the process is pointless.

  13. Brian Numainville Avatar
    Brian Numainville

    Generally speaking, a bad idea from a customer-facing perspective. Sure, some customers like it when they have a few items, but what customer wants to scan an entire cart of grocery items? I get that it is a labor-saving move…but if shoppers leave to go to other stores you might not need the self-checkout either.

  14. John Karolefski Avatar
    John Karolefski

    So, many grocers are testing self-checkout-only stores. Why? I suspect it is to reduce or eliminate labor costs, and not to improve the shopping experience. I have a hard time believing that shoppers are clamoring for these stores. You can’t self-scan alcohol or meds. There are always tech glitches. Self-checkout is impractical for a $200 load of groceries. Let’s see how many of these stores are open a year from now.

  15. Gary Breissinger Avatar
    Gary Breissinger

    There are still some annoying glitches with the scales and PLU entry for produce. But for most packaged goods the process works quite well. In other retail formats like UNIGLO in Europe, a shopper simply puts their basket of clothing items in a designated place and technology reads the items and prints the invoice….without any obvious store personnel in sight—and it works extremely well, albeit with fewer SKUs than in a supermarket.

  16. Brad Halverson Avatar
    Brad Halverson

    I can’t see Kroger at 100% self-checkout adoption across the board for maybe a decade or more. In some of their urban markets they can push this sooner. In other markets, the path to conversion for customers will take time, because there is an expectation of service which has been built in to the brand for years. Just shoving it down on customers cold turkey won’t fly. Converting these kinds of stores to 80% self-checkout might be the place to start. That way they keep the customers connected. Time will handle the rest.

  17. Alex.Siskos Avatar
    Alex.Siskos

    This is not about Kroger. This is about every retailer rethinking their front-end operations and impact on customer experience. And it is doing so in a test & learn modality AND with a fail-fast-forward modus operandi. As far as the AI/Computer Vision tech that is mitigating theft, and more importantly recovering loss –> it is >2x more productive that the 20 year old scale tech, and 4x less likely to result in a “bad catch”. It is definitely adding the desired friction and speed bumps in the paths of red-actors with nefarious intent.

  18. Anil Patel Avatar
    Anil Patel

    I have mixed feeling about the self-checkout-only concept. It all boils down to customer centricity and why retailers want to implement self-checkout at their stores. If the intention is to offer convenience to the customers, then the effort is commendable. However, if the motivation behind implementing self-checkouts is solely to cut labor costs, then it becomes frustrating. Currently, in most retail stores with self-checkouts, it appears evident that the decision is driven by a cost-saving perspective.

    In my opinion, stores should strike a balance between providing a systematic blend of traditional manned & modern self-checkout options. This empowers customers to choose the method that suits their preferences. However, if a store chooses to exclusively implement self-checkouts, it is crucial that they invest in a technology of top-grade quality that offers unparalleled convenience.

    Additionally, the store’s product offerings should be curated in a way that complements these arrangements. Typically, for quick purchases of small items, customers desire a seamless experience where they can simply scan, pay, and go. Any delays in completing transactions, even with self-checkouts, would defeat the purpose and frustrate customers.

24 Comments
oldest
newest
Mark Ryski
Mark Ryski
8 days ago

As self-checkout technology improves – and it is improving despite the complaints – we will see more self-checkout only stores as retailers experiment with the minimal labor model approaches. The benefit of self-checkout for retailers is simple – save money on labor. Period. Ultimately, shoppers decide if they like self-checkout or not and they will make decisions on where to shop. Self-checkout is a big part of retailing today and it will only get bigger as the technology improves.

Neil Saunders
Neil Saunders
8 days ago

Self-checkout still divides opinion. Some love it. Others hate it. However, I think the general direction of travel is that we will see more and more self-checkout lanes introduced in stores. And we will also see more technology to enable customers to just walk in, in some form or another. The bottom line is that registers are inefficient and they are costly to staff. Retailers will reduce and eliminate them as far as they can, albeit while having to keep customer service in mind.

David Naumann
David Naumann
  Neil Saunders
8 days ago

Excellent points Neil! Not everyone loves self-checkout and some dislike it so much that if that is the only option, they may choose to shop elsewhere. Stores have continued to increase the number of self-checkout lanes in proportion to staffed lanes, but personally, I think they should have at least one staffed lane for the customers that “demand” it. Until scanless, just walk out, technology is perfected and cost effective, I see the need for some staffed lanes to avoid alienating some customers – just like airports.

Gene Detroyer
Gene Detroyer
8 days ago

Despite the fact that I have observed in my local Whole Foods that shoppers will wait for self-checkout, even when a manned checkout is available, I am surprised by the acceptance that Kroger and others are finding. Is this a case of “the future is now”?

The key to ultimate success is the technology. I now conclude that the reticence of shoppers to use it is they are intimidated by the technology and its hiccups. If all those are fixed, the conversion will be faster. It is up to the retailers to make it happen.

Ken Morris
Ken Morris
8 days ago

Well, the key question with self-checkout (SCO) is “can you afford the shrink?” This will work with certain demographics, but not all. I was in a Stop & Shop last night at 7 p.m. and they only had one cashier lane open. All eight SCO stations were open and in use. Though many shoppers think SCO is annoying, with a bit more work on the UX it will be ubiquitous. Loss prevention is the biggest challenge, but video analytics has not yet conquered that challenge. Long story short, if you make it too easy, they will steal.

Now, Amazon Go’s just-walk-out technology works because it’s a combo of very limited SKUs and almost unlimited technology. But they still only have one “full size” store, and that’s still a fraction of the square footage of a Whole Foods store, for example. I think what chains can take from the Amazon Go model is that technology can and will enable more automation and self-service at checkout. Don’t listen to the PR spin on “no cashiers left behind.” That is, of course, the whole point. (Along with faster checkout and greater throughput, that is.)

Gary Sankary
Gary Sankary
  Ken Morris
8 days ago

Shrink is the elephant in the room when it comes to self-checkout. Wegmans cited uncontrolled shrink as the reason they’ve walked away from it. Target has reported a significant rise in its shrink in the last two years. They blame ORC, but I have to believe that rise, at some level, correlates with their expanded roll-out of self-checkout. (I sure miss the “threes a crowd” policy for opening new check lanes.
Self-checkout is clearly here to stay, no question. I suspect it will continue to grow in the discount segment, while full-service, higher-end retailers will find a number of their customers aren’t interested in self-checkout and bagging their own groceries.

Steve Montgomery
Steve Montgomery
  Gary Sankary
8 days ago

Agree Two sides of the theft triangle are opporunity and lack of detection. Self Check out provides both.

David Spear
David Spear
8 days ago

Technology is continually improving and the tech that powers self-checkout systems is getting better and smarter every day, especially as new AI models are embedded in software that runs the machines. My personal experience with self-checkout has always been extremely good, with minimal disruptions. Given the percentage of self-checkout now at 55% in grocery, I would say that others feel the same. With this in mind, I think the number for large grocery chains could easily get to 70% in the next few years. For smaller, niche retailers, assisted checkout will be the preference for a variety of business model and experience-related reasons.

Bob Amster
Bob Amster
8 days ago

More common, yes. Ubiquitous, no. This self-checkout-only format is but the extension of a test. In five years we may see some number of stores in a chain use self-checkout only and, then, only in areas where the customer has indicated by their usage, that they prefer it to manned lanes. As to the alleged increase in use to 55% of transactions, I am skeptical.

Gene Detroyer
Gene Detroyer
  Bob Amster
8 days ago

Bob, I don’t think you would be skeptical at all if you observed the checkout behavior in my local Whole Foods.

Richard Hernandez
Richard Hernandez
  Bob Amster
8 days ago

55% is a high number. Stores that pride themselves on customer service will never completely do away with manned lanes. Additionally, they are willing to accept a higher than average shrink number to improve labor hours- I don’t know if that is an acceptable trade. I would love to see this store at Thanksgiving time…

Gene Detroyer
Gene Detroyer
  Richard Hernandez
8 days ago

At Thanksgiving, it is likely that more shoppers will go to manned lanes because the line is too long for the SCO.

Dick Seesel
Dick Seesel
8 days ago

There is a parallel to the conversion from manned gas stations to self service many years ago. (That is, unless you live in New Jersey.) There was a learning curve involved in drivers figuring out how to dispense fuel into their own cars, but the technology became ubiquitous in a short time.

I think we’re seeing the same thing happening in grocery stores, although there are still times when a manned checkout lane is helpful and appropriate. (Scanning a box of cereal is easy, figuring out how to scan and weigh fresh produce is more challenging.) My local Kroger store has also added conveyer-belt SCO lanes for bigger shopping carts but is still maintaining 2-3 manned checkout lanes for those who need them.

Doug Garnett
Doug Garnett
8 days ago

This just seems a very bad idea. Howard Schultz invested in his employees because he saw the tremendous value they added through their short interactions with customers. What are all these stores thinking? It’s the weakest understanding of how business works – one entirely mechanical which views not only employees but customers as efficiency machines without souls. Let’s hope sanity returns to retail at some point.

Shep Hyken
Shep Hyken
8 days ago

Self-checkout has been an experiment thus far. It is an option many consumers love, and others stay away from. Until it is as easy as the Amazon “Just Walk Out” technology, it will be similar to the airlines. Most people choose to book their own flights, but there are always customer service agents willing to book the flight for you. And they are there for those that go self-service first but then need help. Even if the store does convert to 100% self-checkout, that doesn’t mean there won’t be helpful employees standing by for the customer that struggles with the technology.

BenedictEnterprisesLLC
BenedictEnterprisesLLC
8 days ago

Going to a 100% Self Checkout scheme without the benefit of checkout-free technology (i.e. Amazon Go) seems like an inherently bad move given current consumer sediment on the topic, as well as the removal of “choice” from the consumer to use or not use self-checkout.

Granted, Kroger is positioning this as a test but given the opposition to their merger from organized labor, the timing is a bit questionable as well.

Time will tell how this story unfolds, but I hear that the customer is always right…

Mark Self
Mark Self
8 days ago

More common, much more common for stores associated with smaller basket sizes. This is not a “new” trend–I visited a self checkout only store in Europe well over 15 years ago. The economics are right for the store as long as you can manage the length of time people need to wait. Good for Kroger for taking the first step here.

Craig Sundstrom
Craig Sundstrom
8 days ago

As it often does, the Poll almost forces us into an answer: of course they’ll be more prevalent, as only complete disappearance would be less so. I don’t think they’ll become “pervasive” however, for the many reasons mentioned on the ‘Reddit’ post(s). Particularly notable is the claim “with no jobs eliminated as part of the conversion.” Really ?? I would posit that either the statement is (ultimately) untrue, or the process is pointless.

Brian Numainville
Brian Numainville
8 days ago

Generally speaking, a bad idea from a customer-facing perspective. Sure, some customers like it when they have a few items, but what customer wants to scan an entire cart of grocery items? I get that it is a labor-saving move…but if shoppers leave to go to other stores you might not need the self-checkout either.

John Karolefski
John Karolefski
8 days ago

So, many grocers are testing self-checkout-only stores. Why? I suspect it is to reduce or eliminate labor costs, and not to improve the shopping experience. I have a hard time believing that shoppers are clamoring for these stores. You can’t self-scan alcohol or meds. There are always tech glitches. Self-checkout is impractical for a $200 load of groceries. Let’s see how many of these stores are open a year from now.

Gary Breissinger
Gary Breissinger
8 days ago

There are still some annoying glitches with the scales and PLU entry for produce. But for most packaged goods the process works quite well. In other retail formats like UNIGLO in Europe, a shopper simply puts their basket of clothing items in a designated place and technology reads the items and prints the invoice….without any obvious store personnel in sight—and it works extremely well, albeit with fewer SKUs than in a supermarket.

Brad Halverson
Brad Halverson
8 days ago

I can’t see Kroger at 100% self-checkout adoption across the board for maybe a decade or more. In some of their urban markets they can push this sooner. In other markets, the path to conversion for customers will take time, because there is an expectation of service which has been built in to the brand for years. Just shoving it down on customers cold turkey won’t fly. Converting these kinds of stores to 80% self-checkout might be the place to start. That way they keep the customers connected. Time will handle the rest.

Alex.Siskos
Alex.Siskos
5 days ago

This is not about Kroger. This is about every retailer rethinking their front-end operations and impact on customer experience. And it is doing so in a test & learn modality AND with a fail-fast-forward modus operandi. As far as the AI/Computer Vision tech that is mitigating theft, and more importantly recovering loss –> it is >2x more productive that the 20 year old scale tech, and 4x less likely to result in a “bad catch”. It is definitely adding the desired friction and speed bumps in the paths of red-actors with nefarious intent.

Anil Patel
Anil Patel
1 day ago

I have mixed feeling about the self-checkout-only concept. It all boils down to customer centricity and why retailers want to implement self-checkout at their stores. If the intention is to offer convenience to the customers, then the effort is commendable. However, if the motivation behind implementing self-checkouts is solely to cut labor costs, then it becomes frustrating. Currently, in most retail stores with self-checkouts, it appears evident that the decision is driven by a cost-saving perspective.

In my opinion, stores should strike a balance between providing a systematic blend of traditional manned & modern self-checkout options. This empowers customers to choose the method that suits their preferences. However, if a store chooses to exclusively implement self-checkouts, it is crucial that they invest in a technology of top-grade quality that offers unparalleled convenience.

Additionally, the store’s product offerings should be curated in a way that complements these arrangements. Typically, for quick purchases of small items, customers desire a seamless experience where they can simply scan, pay, and go. Any delays in completing transactions, even with self-checkouts, would defeat the purpose and frustrate customers.