Michigan: Another Major Retailer to Cut Way Back on Self Checkout

If you have a love/hate relationship with self-checkout (meaning you love to hate the kiosks) you're not alone. Now another major retailer says it will cut back on self-checkout this year.

Dollar General CEO Todd Vasos recently stated that the retailer has been relying too much on self-checkout lanes and will soon be reversing its course.

Dollar General Relied Heavily on Self-Checkout

In 2022, Dollar General expanded use of self-checkout lanes to about 19,000 stores across the United Sates. The company even rolled a pilot program that introduced self-checkout-only stores.

Like many retailers, the company hoped it would reduce labor costs while increasing checkout speed and adding convenience for customers.

Self Checkouts Lead to More Theft, Customer Backlash

As we reported last year, many major retailers are cutting back on their use of self-checkout lanes. While they're not ready to completely eliminate the kiosks, Walmart, Costco, and Five Below have all said that they plan to significantly reduce their reliance on self-checkout.

While self-checkout lanes were originally intended to reduce labor costs and increase profits, many retailers have discovered that increased use of self-checkout lanes has led to significantly more retail theft. In some high-theft areas, losses are outweighing the investments that have been made.

Dollar General Changing Course

During a 2023 earnings call, Dollar General CEO Todd Vasos noted that the company has been relying too much on self checkout.

“We relied too much this year on self-checkout in our stores,” Vasos said. “We should be using self-checkout as a secondary checkout vehicle, not a primary. It’s going to make a world of difference.”

The company is also making a large investment in labor, meaning you are likely to see more cashiers at DG stores.