Target has implemented limits on customer use of self-checkout lanes at its stores, restricting the option to shoppers purchasing 10 items or less. The Minneapolis-based retailer stated the change aims to improve customer satisfaction and was developed over more than a year based on internal testing.
Company representatives said the decision was not prompted by rising theft. However, industry analysts and other retail observers suggest that persistent problems with theft, commonly referred to as "shrink," are a significant factor behind the move.
Target Self-Checkout areas have been cited as locations where theft can occur. The company reported a nearly $500 million increase in losses related to shrink in 2023 compared to the previous year. A California woman was convicted of stealing over $60,000 using self-checkout machines across numerous visits to a single store.
"Self-checkout is an area of the store where people can steal things," GlobalData retail analyst Neil Saunders said. He added that retailers like Target are scaling back to reduce shrink-related losses.
The scale back at Target is part of a broader trend across the retail sector. Walmart has removed self checkout machines at some stores, including locations in Shrewsbury, Missouri, and Cleveland. Walmart stated these changes were based on feedback from employees and customers and intended to improve service quality through more staffed lanes.
Dollar General announced in April it would eliminate self-checkout from 300 stores with the highest rates of theft. Other Dollar General locations are limiting self-checkout use to five items or fewer. Five Below is also reducing self-checkout availability. Former Five Below CEO Joel Anderson indicated last year that most stores would shift to associate-assisted checkouts, particularly in locations prone to theft.
Shrink remains a national challenge for retailers. The National Retail Federation reported U.S. retailers lost an estimated $112.1 billion to shrink in 2022. Shoplifting reports in New York City increased 64% between 2019 and 2023, according to data from the Council on Criminal Justice.
Despite Target's stated rationale, some customers have expressed frustration with the new limits, citing longer lines and reduced convenience compared to previously unrestricted self-service options.
A spokesperson for Target clarified that the company is not removing self-checkout entirely. They stated it remains available in the vast majority of Target stores and there are no plans to eliminate the option.
