As Morrisons scales back on self-checkouts, is the tide beginning to turn?

Over the past few months, retailers have been switching up their checkout methods with Morrisons scaling back on self-service while Asda is increasing the number of colleagues on manned tills.

Meanwhile, some industry leaders believe that self-checkouts are fueling a rise in shoplifting levels.

While the technology has been a real game-changer for the grocery sector in recent years, growing caution surrounding self-checkout begs the question as to whether the tide is beginning to turn.

Earlier this month, Morrisons chief executive Rami Baitiéh said the technology had gone a “bit too far” and that while it was actively “reviewing the balance between self-checkouts and manned tills,” it intends to remove some from certain stores.

“Morrisons went a bit too far with the self-checkout. This had the advantage of driving some productivity. However, some shoppers dislike it, mainly when they have a full trolley,” he said.

“We reviewed the whole estate and it appeared that 20 stores must balance the number of self-checkouts versus the number of tills.”

Consumer expert Kate Hardcastle says the decision “marks an interesting turn in the retail landscape” and suggests we may be approaching a “tipping point in how we view technology’s role in our shopping experiences”.

She describes Baitiéh’s admission that Morrisons went a “bit too far” as “refreshing”, adding that “the relentless pursuit of efficiency should not come at the expense of customer experience”.

“Retailers must strike a delicate balance between efficiency and empathy. The danger of prioritising self-checkouts too heavily is that it risks eroding the personal connection many customers value. This decision by Morrisons could well be a sign that the pendulum is beginning to swing back toward a more balanced approach,” says Hardcastle.

Despite Morrisons decision to scale back, Redline Retail consultant Andrew Busby says “we’re deluding ourselves if the tide of self-checkouts is going to be checked anytime soon”.

“We are on a path to near 100% self-service at the supermarket. It’s not going to be 12 to 24 months, but I think that’s the direction that we’re heading in.”

While Morrisons is scaling back, Asda is taking a slightly different approach as chief financial officer Michael Gleeson says the supermarket has the balance “just about right” with self-checkout and scan and go.

However, the retailer plans to increase the number of staff on manned checkouts.

“What we’re not doing is changing the mix of checkouts between manned checkouts, scan and go, and self-checkouts. We will simply be manning more of the already available manned checkouts for longer, so it’s improving service for those who choose to use the manned checkouts,” Gleeson explains.

Hardcastle says: “Retailers like Asda are responding to feedback that suggests shoppers crave choice and flexibility. Some customers enjoy the speed and autonomy of self-checkouts, while others prefer the reassurance and service that comes from a staffed till.

“By increasing manned checkouts, Asda is acknowledging that both preferences are valid and that a more personalised approach is necessary to cater to a broad customer base.”

It’s a move she believes other retailers will consider.

“Other supermarkets will take note and potentially follow suit, particularly as the competitive landscape tightens and customer loyalty becomes more critical. Supermarkets are no longer just competing on price but on the overall shopping experience they offer. If increasing the number of manned checkouts results in a more satisfied customer, it’s a smart move.”

Last year, Booths axed self-service tills in all but two of its 27 stores to “boost the premium store experience”.

Hardcastle describes this decision as “a bold move, especially in an industry that often prioritises technological innovation and efficiency”.

However, Busby describes Booths as a “specialised case”, being a premium retailer with a much smaller store portfolio than that of many other UK supermarkets. He notes that the retailer has “done well to reclaim its customer service credentials and differentiate itself”.

Hardcastle agrees. “It appears that this decision was a well-calculated one that aligns with Booths’ brand identity and the expectations of its shopper base. While self-service technology works well for some retailers, particularly those focused on speed and low cost, it doesn’t necessarily fit with a premium brand’s ethos.”

A Booths spokesperson tells Grocery Gazette: “We believe colleagues serving customers delivers a better experience and the vast majority of Booths customers are not just happy we have removed self-checkouts, but grateful.

“Since 1847, the Booths founding philosophy is to, ‘Sell the best goods available, in attractive stores, staffed with first class assistants’. Delighting customers with our warm Northern welcome is part of our DNA and we continue to invest in our people to ensure we remain true to that ethos.”

They add that its ‘Dear Booths’ Net Promoter Scores (NPS), which measures customer loyalty and satisfaction, continue to be at “industry-leading” levels.

On the other hand, fellow upmarket supermarket Waitrose recently provided an insight into what its new and revamped stores would look like with the reopening of its Finchley Road site, which consists of 28 self-service tills compared with just eight manned checkouts.

However, Waitrose retail director Tina Mitchell affirms that manned tills are still “really important” to the retailer.

“We’re not in the camp of just going down the self-service route, because we want to be able to serve our customers in whatever way they want to be served.”

She also explains that despite the larger variety of checkout options, customers will still receive high-level service from partners overseeing the self-service tills.

Hardcastle says the ratio between self-service and manned tills suggests “a significant shift in how the retailer views its customer base and their preferences”.

“On the one hand, this could be seen as a forward-thinking move, catering to a growing segment of shoppers who value speed and convenience above all else. On the other hand, it raises questions about whether this aligns with the expectations of Waitrose’s traditional customer base.”

By comparison, discount supermarket Aldi’s plan to ramp up its self-checkout “makes perfect sense within the context of its brand and business model”, says Hardcastle.

“As a discounter, Aldi’s core proposition is built around efficiency, cost savings, and simplicity. For their customer base, who are often looking for quick, no-frills shopping experiences, self-service checkouts can be an ideal fit,” she says.

The success of Waitrose’s strategy “will depend on whether customers feel that their experience at Waitrose is being enhanced or diminished by the change”, Hardcastle adds.

Busby says: “In the short to medium term, it’s all about the number of store colleagues that you have helping out. Unless we see technology move ahead another step, there will always need to be a store colleague there to intervene.”

As well as some concerns around diminishing customer experience, industry leaders including Morrisons CEO Rami Baitiéh and M&S chair Archie Norman have also raised alarm bells around whether customers are taking advantage of self-checkout technology, adding to the rise in shoplifting.

Norman told LBC’s Money with David Buik and Michael Wilson: “With the reduction of service you get in a lot of shops, a lot of people think: ‘This didn’t scan properly, or it’s very difficult to scan these things through and I shop here all the time. It’s not my fault, I’m owed it’.”

According to a new survey by Ipsos, one in eight self-checkout shoppers have selected a cheaper item than the one they were actually purchasing on a self-service till, which if applied to the entire UK population, would equate to six million people that have used self-checkouts and willfully underpaid at stores.

While Hardcastle is not surprised by the suggestion that there is a link between shoplifting and self-service tills, she explains that “it’s important to understand that this issue is not necessarily an indictment of self-checkout technology itself, but rather of how it’s implemented and monitored”.

She says retailers don’t necessarily need to scale back on self-checkouts to solve this issue but instead need to refine the systems and processes surrounding them.

Hardcastle recommends retailers take “a multi-faceted approach to mitigate the risks associated with self-checkouts”.

“This could include enhanced training for staff to better monitor self-checkout areas, more sophisticated technology such as AI and computer vision systems to detect suspicious activity, and clearer communication with customers about the consequences of theft,” she says.

Co-op managing director Matt Hood, who has been vocal in the impact that shoplifting has had on the convenience retailer and its colleagues, says that while “there is some evidence that self-checkouts do lead to an increase in shrinkage, he “wouldn’t be an advocate of reducing them”.

“They mean that we can get customers unhindered through our shops a lot quicker so for me, the benefits still outweigh the costs,” he adds.

For Hardcastle, “the tide is indeed changing” on self-checkouts as retailers are beginning to realise that “a one-size-fits-all approach to checkout services may no longer be sufficient or most effective in the battle for brand experience”.

While she notes that the technology has undoubtedly streamlined the checkout process for many shoppers it has also “introduced a layer of frustration and alienation for others, particularly for those who value human interaction or require assistance”.

It’s undeniable that self-checkouts come with their issues, however, this technology does provide an entirely different, modernised way of shopping that does appeal to a wide range of consumers.

While a manned checkout approach may be the best bet for the likes of Booths, it’s unlikely that any mainstream supermarket will ever fully turn its back on self-checkouts.

Ultimately, what works for one grocer isn’t necessarily going to work for another, it’s all about finding the right balance for each individual retailer.