- Gen Z shoppers are more likely to engage in shoplifting, especially when using self-checkout kiosks in retail stores.
- A survey found that nearly one-third of Gen Z shoppers admitted to shoplifting from self-checkout aisles, compared to only 15% of shoppers overall.
- Major retailers such as Walmart, Costco, and Wegmans have reduced the number of self-checkout kiosks in their stores due to intentional theft, but are exploring technological solutions to deter shoplifting.
Additional Coverage:
- Gen Z loves self-checkout because it makes shoplifting easy—and retailers are flailing as they scramble to undo it (fortune.com)
Young shoppers are more likely to engage in shoplifting, according to a recent survey. The trend of stealing extends beyond online piracy and into retail stores, with Gen Z shoppers admitting to swiping items, especially when using self-checkout kiosks. These young shoppers show a stronger affinity for self-checkout than older generations. More than half of Gen Z and millennial respondents said that having a self-checkout option would be a reason for them to switch retailers. However, this convenience also makes it easier for them to steal.
A survey by LendingTree found that nearly one-third of Gen Z shoppers (31%) admitted to shoplifting from self-checkout aisles, compared to only 15% of shoppers overall. The survey also revealed that 46% of Gen Z participants said they plan to steal the most expensive item in their cart, while 37% would steal basics like food and water. The increasing spending power of Gen Z makes it crucial for retailers to attract these young buyers, but they must also address the issue of shoplifting.
Major retailers such as Walmart, Costco, and Wegmans have taken measures to combat self-checkout shoplifting. These companies have reduced the number of kiosks in their stores due to intentional theft. The dilemma for retailers lies in finding a balance between satisfying customers’ desire for convenience and protecting themselves from theft. LendingTree Chief Credit Analyst Matt Schulz emphasized the need for retailers to weigh the risks and benefits of self-checkout terminals.
Retailers have implemented self-checkout kiosks to increase convenience and reduce labor costs, but they have also faced losses from shrinkage. A 2017 study found that the shrinkage rate for UK, US, and European retailers using mobile scan-related technology was more than twice the overall shrinkage rate. Walmart is one example of a company that has witnessed a surge in theft after implementing self-checkout lanes, leading them to reintroduce cashiers in some stores.
While some Gen Z shoppers believe the act of shoplifting is justified, corporations are exploring technological solutions to deter theft. Amazon’s Just Walk Out technology allows customers to enter a store, scan their credit card or use the Amazon app, and leave without going through a formal checkout process. Sensors and cameras track the items customers put in their carts. Although the technology has been successful, there have been rare instances of shoplifting, indicating that it is not foolproof.
Some retailers are hopeful that doubling down on technology will discourage shoplifting. For instance, Downtown Spirits in Seattle installed Just Walk Out technology to deter theft. Amazon reports that the technology has been effective in curbing theft since its introduction.