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Retailers Invest in Self-checkout Solutions Despite Shrinkage Concerns

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Retailers Invest in Self-checkout Solutions Despite Shrinkage Concerns

Adoption continues to rise, with retailers deploying a variety of loss prevention measures including AI-powered solutions 

Activity surges in Latin America and Europe, with rollouts and refreshes alike 

2024 was another year of high investment in self-checkout technology, with nearly 205,000 terminals delivered globally during the year, according to the latest Global EPOS and Self-Checkout research from Datos Insights. 

Supermarket chain Lidl considerably expanded its rollout across Europe, with Aldi and SPAR launching self-checkout in new markets. Non-food retailers also continued to embrace self-service, with pharmacy chain dm-drogerie markt and discounter Pepco among those ramping up their installations in 2024. 

Shipments to Latin America skyrocketed, with record levels of activity in Brazil and Mexico. Carrefour and Atacadão were among the major grocery retailers rolling out in Brazil, while Walmart refreshed its hardware in Mexico and Chile. Self-checkout technology is also gaining momentum across the wider region, with deployments from El Salvador to Uruguay.  

A chart showing the growth in self-check out shipments, 2023-2024 by region

US big-box firms reassess strategies while convenience chains embrace self-service 

Following record activity in recent years, shipments fell in the USA as some large-scale retailers, including Dollar General and Target, reevaluated their approach to self-service because of concerns around shrinkage. Loss prevention strategies implemented include removing terminals or converting them to assisted checkouts in specific theft-prone locations, as well as limiting basket sizes. 

However, while big-box retailer investment has slowed, major convenience chains including Phillips 66 and Parker’s Kitchen are widely deploying self-checkouts – with many leveraging computer vision solutions to accurately bulk-scan customer purchases, helping to both quicken transactions and reduce shrinkage. 

Global and regional suppliers race to capture business in booming self-checkout market 

The latest research from Datos Insights reveals an ever-more competitive and fragmented market, with more than 50 vendors worldwide. Among those with a global presence are NCR Voyix, which supplies key grocery and big-box firms in the Americas and EMEA, Diebold Nixdorf which delivers to major European supermarket chains, and Toshiba whose clients include leading retailers in Japan and the USA. 

Chinese firms supply self-checkout in their home market but are increasingly expanding overseas. CCL Technology and Wintec both have a strong foothold in Central and Eastern Europe, while HiStone supplies terminals to retailers in Latin America. 

Dutch firm Pan Oston and its Swiss sister company 4POS count major supermarket chains as clients in Europe, as does Swedish manufacturer ITAB. 

Huge growth potential remains as self-checkout formats evolve 

Self-checkout technology continues to see strong adoption globally, with retailers seeking innovations that increase both the efficiency and security of the checkout process. Demand for card-only terminals is rising, with 71% of units shipped globally in 2024 not accepting cash payments. 

In addition, retailers are working with vendors to combat shrinkage, with the USA’s Kroger and French firm Groupement Mousquetaires among those deploying AI-powered solutions to combat shrink at their terminals. 

As labour shortages and wage increases drive uptake of self-checkout worldwide, growth is expected across all regions and particularly in emerging markets, from Bulgaria to Egypt. By 2030, global installations are set to exceed 2.1 million. 

Written by Chris Allen, Market Data & Forecasting, Datos Insights

 

Notes to editors 

About Datos Insights 

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