The impact and control of self checkout shrinkage
The impact and control of self checkout shrinkage

Retailers experimenting with self-checkout should be implementing strategies to minimize stock loss. Hence, so that they can better achieve operational benefits and improve the customer journey, according to a report.

The ECR Community Shrinkage and On-shelf Availability Group (OSA) and NCR have published a comprehensive report. Its a report that assesses the potential impact of self-checkout (SCO) technologies on retail loss. In addition to this, provides best practices and guidance on how to address and balance risks.

“Retailing is becoming ever more dependent upon a host of technologies. Hence, many of which are increasingly focused upon improving the customer journey,” said John Fonteijn. John is the honorary chair of the ECR Community Shrinkage and On-shelf Availability Group. “This report will help retail organisations to continue to reap the benefits. The key benefits that self-scan technologies can bring while doing so within a sustainable business model.”

The payments revolution Retailers count their stock loss typically. This is as a percentage of their sales. Hence, which according to a prior ECR report, is about 0.67% of grocery retail sales. The new report from ECR and NCR, Self-Checkout in Retail suggests a typical retailer can
experience an increase in stock loss of one basis point for every 1% of sales that go through fixed SCO machines. For instance, a typical store with 25% of its sales value going through fixed SCO could see additional stock losses of 0.25% of sales value.


Stores using scan-and-go technologies could see an increase of between 0.7 and 10.4 basis points of additional loss for every 1% of sales processed. In the study, the average utilization rate for scan-and-go was 2.8% of sales value, suggesting additional stock loss of between 0.01% and 0.29% of sales value.

The report goes on to consider ways in which SCO technologies can be controlled, including a range of emerging technologies. The report also underlines the importance of monitoring data on the risk of loss relating to SCO as well as adopting a more joined-up approach to SCO management and control.