Self-Checkout Theft - Technology Increases Retailer’s Risk Of Theft

Self-Checkout Theft – Technology Increases Retailer’s Risk Of Theft

On the latest episode of the E-Commerce Retail Briefing podcast:

With self-checkout technology becoming more widespread, theft is also on the rise for retailers. According to a report, theft accounts for 4% of most retailer’s inventory. But the cost-effectiveness of self-checkout seems to trump the rise in stolen inventory.

What is self checkout theft?

Self checkout theft is a form of shoplifting where a shopper missuses an automated point of sale or cashier machine to illegally acquire goods at a lower cost. Larger retail stores and supermarkets in America with limited checkout clerks or other employees are the most affected by this method of theft.

A common method these petty thiefs use is to ring up an item with the pricing sticker of a cheaper item, also known as the weight or “banana trick.” Think $15 per pound steaks scanned with the sticker lifted of of a $1 per pound bag of bananas.

Or an even easier scam, the “pass around” trick in which criminals use sleight of hand to simply place an item in their bag without scanning it or putting it on the checkout counter. Busy employees and distant surveillance cameras can be relatively easy to fool by these criminals.

Finally the most common trick that’s used is the one that arguable every person has been tempted to do: simple leave an item in their cart and “forget” that it’s there. Honest mistake if anyone asks, and it doesn’t involve deliberately deceiving the scanner software and won’t likely result in a visit by the police or a night in a jail cell

Ease Of Self-Checkout Trumps Risk Of Theft For Retailers

Self-checkout technology is wide-spread with large and small retailers alike. Without the supervision of cashiers, theft seems like it would occur more often. While theft is more likely to happen with self-checkout, retailers have still embraced the method. Shoplifting accounts for nearly 4% of inventory for retailers with self-checkout, compared to just 1.5% for traditional checkout, according to a report. What’s more, in a recent review of shoplifting offenders, 72% said that self-checkout made theft easy to very easy. Only 8% answered it made shoplifting more difficult.

For some retailers, they’re finding higher sales in addition to higher losses with self-checkout. Still, most are willing to take the chance of more losses. Switching to self-checkout provides convenience and the cost to sell is much lower. A self-checkout setup with four machines costs $125,000 versus just $1,500 for four traditional registers according to estimates from MIT. But with only one person needed to man self-checkout compared to four at the registers, cost savings can add up quickly.

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