Retailers Removed Self-Checkout Kiosks Following Loss Spikes

Companies reduced self-service options in 2026 as concerns over theft and operational errors increased.

Updated on Oct. 4, 2026 in Retail

Isometric editorial illustration showing a lone, empty retail checkout stand and conveyor belt in a sterile, minimalist business environment. — Major U.S. retailers significantly reduced self-checkout kiosk availability in 2026, aiming to curb inventory losses caused by theft and scanning errors. AI Illustration. Upload story photo >

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Major retailers across the United States pulled back on self-checkout technology in 2026 after identifying the systems as a driver of increased merchandise losses. The share of retail operators utilizing self-checkout fell to 36 percent this year, down from 43 percent in 2025.

Why it matters

Retailers moved to remove kiosks or enforce strict item limits because data indicated self-checkout technology significantly contributed to store theft and scanning errors. Firms are now attempting to improve business efficiency and simplify operations by rolling back automated systems.

Grocery stores reported merchandise losses were 33 percent higher in locations with self-checkout compared to those without. Additionally, Dollar General removed the technology from approximately 12,000 stores during 2024.

The players

Dollar General

This major discount retailer operates thousands of small-format stores across the United States.

Target

This national big-box retailer provides a wide range of goods and implemented self-checkout item limits.

Walmart

This multinational retail corporation operates as one of the largest brick-and-mortar retailers globally.

Schnucks

This regional grocery store chain serves customers across the Midwestern United States.

The details

Companies like Target, Walmart, and Schnucks implemented item count restrictions, such as 10-item or 15-item limits, to regain control over store losses. Meanwhile, some municipalities have intervened, including a 2025 Long Beach ordinance that requires stores to keep at least one staffed lane open.

In 2024, major retailers removed systems or set item limits.
In 2025, Long Beach passed a self-checkout regulation.
In April 2026, Toast surveyed retail self-checkout usage.

Market Landscape

The 2025 Long Beach self-checkout ordinance represents a formal regulatory intervention against the widespread automation of the customer checkout experience. This local mandate follows a national pattern where retailers are prioritizing human-staffed lanes to combat rising inventory losses.

Shoppers can expect fewer self-checkout options and increased wait times as retailers return to traditional staffed registers. These changes are intended to curb loss, though they may also lead to stricter item-count enforcement during store visits.

The takeaway

Retailers are currently balancing the cost of labor against the financial impact of high merchandise losses occurring at automated kiosks. Consumers should prepare for a transition back to traditional service models as businesses prioritize loss prevention over extreme automation.