A new wave of grab and go checkouts on the rise in retail

First introduced in 1986, self-checkout machines were once lauded by retailers for boosting efficiency, reducing labor costs and improving speed. These machines used the same barcodes to scan goods as staffed checkout lanes — the key difference being that they placed the shopper in total control of their checkout experience. However, retailers across the globe are starting to pull away from this traditional form of self-checkout as in many cases, it has become a growing contributor to shrink through increased shoplifting and customer error rates.

Shrink accounted for more than $112 billion in losses for retailers in 2022 according to a report by the National Retail Federation. As retailers globally look for new ways to improve loss prevention and reduce shrink, this has prompted major retailers including Walmart, Target, and Costco to limit the number of available barcode scanning self-checkout machines and, in some cases, cease use of the machines completely.

Instead, many retailers are turning to RAIN RFID-powered self-checkout which delivers increased automation and accuracy, along with speed and reduced customer-employee interaction. Top retailers are already using RAIN RFID to introduce new approaches to self-checkout. This new wave of automated self-checkouts that eliminate the need to manually scan individual barcodes is only set to rise in popularity among retailers looking to streamline the checkout process, improve loss prevention, and enable accurate and fast transactions for customers.

Are the risks of traditional self-checkout machines outweighing the benefits?

In an era of economic uncertainty, retailers are prioritizing sales growth while looking for ways to improve the overall shopping experience. The traditional self-checkout process requires the customer to manually scan individual products, utilizing on-screen prompts and voice-operated guides to assist the shopper throughout the entire transaction. This process allowed retailers to redeploy employees to other areas of the store while providing shoppers with the option for an interaction-free checkout. The pandemic-induced labor shortage also meant that retailers were increasingly relying on self-checkout systems as hiring slowed in 2020 and stores were keen to reduce in-person contact.

In many cases today, however, to combat increased rates of theft and human error, many retailers have had to increase the number of employees needed to monitor customers at self-checkout lanes. Many customers report frustration with inefficient self-checkout systems that put extra burden on them while often requiring employee intervention to scan and bag items and complete their transaction.

Sustainable tracking technology is replacing traditional self-checkout systems

With so many risks and challenges for retailers and their customers alike, it's no wonder that traditional self-checkouts are under increased scrutiny. However, a new kind of "grab and go" self-checkout experience powered by RAIN RFID utilizes advanced tagging and tracking technology to automatically detect and recognize products. Shoppers can simply grab what they need without having to wait in long lines or use a physical card, cash, or check to pay.

This delightful shopper experience is made possible by making every item uniquely identifiable with RAIN RFID tagging and reading. The items can be identifiable throughout the entire product lifecycle. In addition, the tags are small, and rather than relying on batteries are powered by radio waves.

Loss prevention in the past relied on beeping alarms and enhanced security presence at the door in stores. Today, with the use of RAIN RFID, retailers have increased visibility into their inventory and stock – both on the sales floor and in the warehouses.

Uniqlo, Decathlon and Inditex are among the top leaders who have already implemented RAIN RFID-based self-checkout as an alternative to traditional self-checkout systems. Uniqlo, a global retailer with headquarters in Japan, introduced RAIN RFID chips into price tags on their products. This has allowed the retailer to track every item from warehouses to factories and eventually to their thousands of stores across the globe. Since first adopting RAIN RFID in 2017, Uniqlo has reported fewer items out of stock in stores and a better experience for customers overall.

Amazon has also launched and deployed its Just Walk Out technology incorporating RAIN RFID tagging and reading to an increasing number of sports stadiums, removing the need for traditional self-checkout systems.

RAIN RFID is helping to drive retail transformation beyond self-checkout — providing increased inventory accuracy and visibility and helping to address retailers' highest priorities for 2024, from loss prevention and shrink to speeding fulfillment and driving real-time insights. In an era where retailers typically haven't moved as fast technologically as their customers, RAIN RFID is helping retailers better meet the evolving needs of their customers, to provide a seamless shopping experience that gives shoppers the convenience, privacy and control they want over their purchases. Uniqlo, Decathlon, and Inditex are currently among several of the top companies in retail working to bring the industry up to speed through RAIN RFID.