Dollar General’s Bold Move to Prioritize Security and Efficiency: Removing Self-Checkouts
In a decisive move to combat rising theft and prioritize in-store efficiency, Dollar General has pulled the plug on self-checkout systems in 12,000 of its locations, leaving these controversial kiosks in just a few select stores. This significant shift underscores the retailer’s commitment to safeguarding its profits and enhancing the customer experience, reflecting a strategic vision that aligns with the values of robust business leadership.
This reversal, the largest of its kind by any major retailer, was revealed through an internal staff manual. Dollar General’s bold decision to eliminate self-checkouts comes after the company invested millions in the technology, only to see a surge in shoplifting that significantly impacted their profits earlier this year.
Dollar General’s proactive stance in addressing the challenges posed by self-checkouts is a testament to the company’s unwavering focus on maintaining a secure and efficient shopping environment. Rather than dismantling the self-checkouts entirely, the company has opted to cordon them off and redirect customers to traditional, manned lanes. This approach not only prevents theft but also ensures a more personal and interactive shopping experience.
In situations where lines for traditional checkouts grow, Dollar General employees will temporarily reopen the self-checkout kiosks, but with a twist: staff members will operate them for the customers. According to the staff manual, this system is referred to as ‘line buster registers.’ The manual details that these registers will be operated by employees as if they were standard registers, engaging with customers throughout the transaction and expressing gratitude for their patronage.
These registers can process all forms of payment except checks, maintaining convenience while bolstering security. The manual also includes a section addressing customer inquiries. For example, if a customer questions why assistance is being provided, staff are instructed to respond, “Of course we trust you. We just want to assist you and improve our service.” This response highlights Dollar General’s commitment to customer service while mitigating potential theft.
Dollar General’s initial rollout of self-checkout kiosks began aggressively in 2022, with the technology installed in over two-thirds of its 20,000 stores by early the following year. The company even experimented with stores that exclusively featured self-checkouts. However, the rising issue of ‘shrink’—a retail term for theft—prompted a swift change in strategy. CEO Todd Vasos explained that the decision to remove self-checkouts from 12,000 stores was driven by the need to curb these losses.
During a recent update to investors and analysts, Vasos reported that while sales for the three months ending May 3 increased by 6 percent to $9.9 billion, profits saw a 26 percent decline. This discrepancy highlighted the pressing need to address theft more effectively. Vasos noted that self-checkouts will remain in a limited number of high-volume, low-shrink locations.
The move away from self-checkouts reflects a broader trend among major retailers. Customers and store staff alike have expressed growing dissatisfaction with the kiosks, citing concerns about working for free and the increase in theft. Walmart, for instance, has removed self-checkouts from at least six stores this year, and Target has done the same in at least one location, despite previously committing to the technology across its 2,000 stores. Kroger and Costco have also adjusted their approaches, adding traditional lanes and increasing supervision in self-checkout areas, respectively.
Vasos emphasized the positive feedback received from customers in the 9,000 stores where the change has been implemented, as well as in the additional 3,000 stores adjusted in May. He stated, “Consumers … like the interaction at the front of the store.” This feedback reinforces Dollar General’s decision to enhance customer service and maintain a secure shopping environment.
Dollar General’s strategic shift demonstrates a clear focus on improving operational efficiency and customer satisfaction while addressing the challenges posed by self-checkouts. This bold move sets a precedent for other retailers grappling with similar issues, showcasing the company’s leadership and commitment to excellence.
