Dollar General is making significant changes to its checkout process by moving away from self-checkout at some of its stores. The decision comes as the company addresses concerns over theft and inventory loss. CEO Todd Vasos announced that self-checkout will be eliminated at 300 stores with high instances of theft. Out of Dollar General's 20,000 stores, approximately 14,000 currently offer self-checkout.
Moreover, the retailer is converting self-checkout stands to hybrid ones at 9,000 locations, providing an assisted-checkout option. This move aims to prioritize staffed registers to enhance customer service and reduce wait times during peak hours. Additionally, at stores retaining self-checkout, customers will be limited to purchasing five items at a time to help prevent theft.
Vasos emphasized the importance of employee presence at the front end of the store to greet customers and provide quality service. The changes are part of efforts to engage employees in the checkout process and combat theft effectively.
Other retailers are also reevaluating their self-checkout strategies. Some have implemented a 10-item limit for self-checkout transactions, while Walmart has restricted self-checkout to Walmart+ members and Spark drivers at select locations.
Dollar General and its competitors have long grappled with 'shrink,' which includes losses from theft, damaged goods, and unsold inventory. Dollar Tree recently announced the closure of 1,000 Family Dollar stores, citing theft as a contributing factor in the decision-making process.
Vasos hinted at the reconsideration of self-checkout in December, emphasizing the need for increased staff presence to address theft and errors. The company has utilized AI technology to evaluate self-checkouts, identifying issues contributing to shrink. The hybrid checkout model being implemented at 9,000 stores is expected to mitigate theft and other losses effectively.
These changes reflect Dollar General's commitment to enhancing customer service and reducing losses associated with self-checkout. The company's proactive approach underscores the importance of employee engagement in the retail experience.
