In recent years, self-checkout has evolved from a supplementary feature to a core component of the retail experience, transforming how customers shop. According to the RBR 2024 Global Self-Checkout report, 2023 was a record year for self-checkout shipments, particularly to Western Europe, highlighting its growing importance in retail. Self-checkout offers improved efficiency, increased accessibility, and more checkout lanes without the additional labor costs. However, for store owners and managers, self-checkout can also increase vulnerability around merchandise loss—often referred to as "shrink."

Traditional loss prevention methods utilize alert-based deterrents as a foundational approach to this problem, which increases obstacles to theft and often leads to improved shrink results across the store. However, when applied to self-checkout, this approach has several critical flaws:

• It assumes most of the shrink loss at self-checkouts is the same as across the store.
• It overlooks subtler forms of shrink by customers who don't initially intend to steal.
• It impacts a high majority of customers, risking driving away honest patrons and costing the retailer more than just shrink on their bottom line.
• More importantly, these measures often operate assuming all loss is due to intentional theft. In reality, a substantial portion of shrinkage at self-checkout is unintentional. Research done by ECR Loss Group & Adrian Beck in 2018 & 2022 revealed that 52% of shrinkage is accidental, overshadowing the 48% attributed to malicious intent.

Understanding the distinction between unintentional and intentional theft is crucial for effective prevention at self-checkout as it will impact every shopper. Dr. Emmeline Taylor from the Department of Sociology at City, University of London, introduced the term "swipers" to describe seemingly well-intentioned patrons who engage in routine shoplifting. These individuals might accidentally leave the store without paying for something and, upon realizing how easy it is, continue to exploit the system by stealing. They might also justify their actions due to negative in-store experiences or as compensation for price increases or reduced staff.

Traditional loss prevention strategies often fail to address swiper behaviors. With the added pressure of global increases to cost-of-living, there's an increased risk of first-time scammer behaviors in the self-checkout zone. This trend is compounded by social media reinforcing the ease and social acceptability of this challenge at a scale faster than the retail industry can contain it. Addressing this requires a blend of solutions, including AI technology such as NCR Voyix's PickList Assist and Everseen, and operationalized targeted shrink training that delivers exceptional customer service. A simple smile, a friendly greeting, prompt issue resolution, and a warm goodbye can significantly impact customer behavior, turning potential losses into positive interactions and limiting further risks. By focusing on combined solution strategies, retailers can effectively combat both accidental and intentional shrinkage, enhancing the overall self-checkout experience rather than chasing the moving risk around the self-checkout area.

The top 3 self-checkout common sources of risk resulting in shrink and loss

As recent insights indicate that swiper behavior is increasingly common, retailers are paying more attention to the vulnerabilities in their systems. Retailers who use combined solutions with AI technology globally are seeing up to 5% of transactions include at least one of these the most common behaviors listed below. These statistics reflect the significant challenge retailers face in preventing customers from leaving the store without paying for all their merchandise, either accidentally or on purpose, even when they are habitual shoppers and potentially familiar with the interface. Correctly addressing loss-prevention at self-checkout requires innovation, informed by the full range of shopper behavior.

1. Non-scanned items

Non-scanned items represent the biggest challenge and highest volume of loss in self-checkout, often accounting for over 60% of the problem. Whether shoppers are intentionally or unintentionally not scanning items, 3% of transactions include unscanned merchandise, leading to significant lost revenue but also presenting an opportunity for improvement both for customer and staff members as well as improving bottom line profitability.

Drivers of non-scanned items:

• Accessibility challenges: Personalized interfaces and unique UI (User Interface) designs can confuse infrequent shoppers.
• Packaging issues: Items not scanning on the first attempt or products not being listed, resulting in "unknown item" errors.
• QR code interference: QR codes on products disrupt barcode scanners.

Key Points for Effective Prevention:

• Ineffective weight alerts: 77% of loss prevention managers view weight alerts as the best solution for this problem today, according to the ECR report. However, false alerts often occur because the product weight does not align with the database, leading to unnecessary interventions. Additionally, while staff may attend to these alerts, they often fail to resolve the underlying issue.
• Data-backed learning: Tools like Everseen analyze real-world, high-volume data from 140,000 self-checkout lanes daily to capture true retail behaviors and build accurate Non-Scan Alerts. Their system employs “soft nudges,” using GIFs to gently prompt and correct customer behavior, creating a positive experience for both customers and staff.
• Customer accountability: Understanding customer challenges and correcting behaviors is critical. By taking steps to correct accidental or intentional theft, retailers can convert potential risks and losses into paying transactions, ensuring a more secure and efficient self-checkout experience now and in the future.

2. Misuse of price look up codes

The multiple use of PLUs (Price Look-Up codes) is a common issue where customers use the code for one item to ring up a different item. For example, a customer might use the code for onions or potatoes to scan various items that in some cases cost significantly more. This behavior, whether intentional or due to genuine mistakes, often goes unnoticed, leading to substantial revenue loss and inventory inaccuracies.

Drivers of PLU misuse:

• Intentional use: Some customers may deliberately use a cheaper PLU code to save money on more expensive items.
• Genuine mistakes: Language barriers, unclear menu options, poor item images, and inconsistent retail interfaces can lead to honest mistakes. Customers might struggle to find the correct codes and inadvertently use the wrong one, resulting in unintentional shrinkage.
• Implementing effective solutions: To combat this issue, leveraging advanced AI technology and combined with staff training is essential. Solutions like NCR Voyix's PickList Assist can detect items and reduce options of choice for customers. Enabling an apple to show only apple choices reduces the opportunity to abuse the system. This also means no need for alerts to staff and less friction for customers, from a simple change that benefits everyone.

Additionally, operationalized shrink training aligned with mobile RAP (Remote Attendant Program) solutions equips and empowers self-checkout hosts with the skills needed to recognize and address additional bad behaviors. This combined approach of technology and human vigilance can significantly reduce the occurrence of PLU-related shrinkage, whether intentional or unintentional.

Key points for effective prevention:

• AI-powered detection: NCR Voyix's PickList Assist and Everseen utilize real-time data analysis to identify and flag suspicious transactions involving PLU misuse.
• Staff mobile RAP and training: Operationalized process using informative handheld devices and aligned shrink training helps staff become adept at spotting and responding to PLU manipulation, enhancing their ability to intervene appropriately.
• Improved user interfaces: Ensuring that self-checkout systems have clear, multilingual support and accurate product images can help reduce unintentional mistakes by customers.
• Customer interaction: Engaging customers with positive interactions and assistance can deter fraudulent behavior and promote honest transactions.

3. Walk-off without payment

A walk-off when a customer initiates checkout at a self-checkout lane but leaves before paying. This can happen due to genuine oversight, technical issues like a payment timeout or intentional theft. Sometimes, customers can take unpaid merchandise with them, representing a direct loss. Even when merchandise is left behind, it requires employees to collect and restock those items, leading to operational inefficiencies.

Drivers of walk-offs:

• Inaudible alerts: When programed alerts are too quiet or absent altogether, customers can miss them or walk off without drawing attention from staff.
• Visual distractions: When on-screen messaging is confusing, shoppers can misunderstand or get distracted.
• Lack of exit gates: Although it sounds simple, a physical barrier can effectively prevent walk-offs.
• Passive staff oversight: If staff members are not properly trained, they can miss suspicious or incorrect customer behavior.
• Confusing payment systems: When customers do not understand the payment system, they may get frustrated and abandon their transaction. in technical difficulty resulting in frustrated customers

Key Points for Effective Prevention:

• AI-Powered Alerting: Using AI technology to monitor customer behavior and detect potential walk-offs in real-time can help staff intervene promptly.
• Staff Training: Operationalized shrink training equips staff to recognize and address walk-offs effectively, ensuring they know how to assist customers and prevent losses.
• Improved User Experience: Streamlining the self-checkout process with clear instructions and reliable technology can reduce unintentional walk-offs.

The first step to addressing these common sources of risk at self-checkout is to understand them. Then, with the combination of the strategic solutions highlighted in this article, such as PickList Assist and Connected Associate from NCR Voyix , as well as Everseen and ITab exit gates, and the added layer of well-trained customer service teams, retailers can create a robust defense against both accidental and intentional shrinkage.

We invite you to visit our headquarters to see these technologies in action or contact us to learn more about how our integrated approach can enhance your self-checkout experience, benefiting both your customers and your bottom line.