How do self checkouts at stores save money?

[ray hampton]

some stores are taking the self-serve lanes out or hiring a clerk to man the cash register ,some people need help with the purchases unload into their car and this act will require a stock person or a bagger, if your car got a flat tire , you can ask a bagger to change it for you

[Kevin Bourque]

Our Home Depot stores have self checkout lanes. Theres one employee who monitors 4 checkout stations. That's a huge savings.

[Gary Hodgin]

Assuming the savings are significant, the stores could encourage customers to use self-check by giving them an positive incentive, such as a fifty cents or dollar off the purchase or maybe a snickers bar. Now, the only incentive is negative, avoiding longer lines at the cash register.

[Mike Henderson]

Assuming the savings are significant, the stores could encourage customers to use self-check by giving them an positive incentive, such as a fifty cents or dollar off the purchase or maybe a snickers bar. Now, the only incentive is negative, avoiding longer lines at the cash register.

What the stores say is that they use the savings to offer lower prices. Of course, all shoppers benefit from the lower prices, not just those who use the self checkout. So I suppose that's a reason for more people to use the self checkout - to lower the prices for everyone.

Mike

[Bonnie Campbell]

Can't say as I've noticed any lowering of prices using self checkout. So I'll let them check it out until there is some proven savings to myself.

[Joe Angrisani]

.....So I'll let them check it out until there is some proven savings to myself.

Kroger (ticker KR) is up over 32% in the last 6 months (plus the yearly dividend that's currently 2%). Safeway (SWY) is up over 52%, plus a 2.9% dividend. How about some of those proven savings? Forest/trees, people....forest/trees.

[John Coloccia]

Kroger (ticker KR) is up over 32% in the last 6 months (plus the yearly dividend that's currently 2%). Safeway (SWY) is up over 52%, plus a 2.9% dividend. How about some of those proven savings? Forest/trees, people....forest/trees.

Kroger's profit margin is flat, and both Kroger and Safeway's profit margins are LESS than the average grocery store. Whatever they're doing, they're not doing it right.

I'll echo what someone else said earlier. Big Y got rid of self checkout here a couple of years ago. Too much loss. Big Y is family owned and they can make intelligent decisions quickly and easily. More than that, though, is it really asking too much to have someone ring me up and put my items in a bag? Seriously, if a store can't afford to hire someone to take my money, I'd just as soon go elsewhere. There are plenty of choices.

I use self checkout, sometimes, when I have maybe one or two easy items. I'm just not going to sit there for 20 minutes scrolling through pictures of bread, vegetables and fruit on my weekly shopping trips. Most people agree. Self checkout use is down, and more and more supermarkets are canning them because they're a failed experiment. The proper way of doing this is with scan tunnel technology, such as the technology that Kroger is playing with right now (and actually that my former company developed). You put your stuff down, it goes through a tunnel, and it comes out the other side. If a store wants my money, at a bare minimum they have to have at least a machine there to do the work of ringing me up.

[Rich Engelhardt]

I noticed that a number of new Walmart stores did not have self checkouts. The local Walmart store was remodeled and expanded last year and they installed self checkouts so apparently Walmart is still doing self checkouts.

Either that or the remodel plans haven't been changed yet.
Big box retailers have canned set up and remodel plans that they stick to.
The remodel plans may call for self serve checkouts to be installed, so, that's what they do.
Then a few months later, they remove them.
Makes no sense - but - making no sense is what 90% of mass retailing is all about.

I saw some pretty weird stuff go on during my years in retailing.

[David Weaver]

Our grocery store chains have ditched it, too. I actually liked it at the grocery store. I hate the self checkout at lowes, the only saving grace of it is you get fewer stupid questions about whether or not you'd like to set up a credit card. I'd like to make a Tshirt that says "I don't have your store card, and I don't want to set up a store card. Don't ask".

I'd imagine if kroger and safeway are making extra money, it has more to do with opportunistic price increases as food costs go up (as in, seeing wholesale costs go up 5 cents per pound on something, increasing your price 25 cents and blaming it on the markets). Either that, or putting an emphasis on more garbage high margin quasi food instead of fresh food.
Only about 1/5th of what's in a grocery store represents food, the rest of it is lowest input cost trash that is palatable only because of the added salt and sugar.

[Rich Engelhardt]

I'd like to make a Tshirt that says "I don't have your store card, and I don't want to set up a store card. Don't ask".

You save 5% on every purchase at Lowes when you use their credit card.
Home Depot will match that 5%, but, you have to use the Home Depot card.
One of the things I really love about the Lowes card is that it has a provision for a purchase order & they ask you each time if you have a PO#.
Using the PO makses keeping track of expenses/materials to what "job" they go to really nice come tax time.
You also accumulate points on the card that can be redeemed later.

5% discount, rewards, easy accounting - what's not to love about it?

[John Coloccia]

You save 5% on every purchase at Lowes when you use their credit card.
Home Depot will match that 5%, but, you have to use the Home Depot card.
One of the things I really love about the Lowes card is that it has a provision for a purchase order & they ask you each time if you have a PO#.
Using the PO makses keeping track of expenses/materials to what "job" they go to really nice come tax time.
You also accumulate points on the card that can be redeemed later.

5% discount, rewards, easy accounting - what's not to love about it?

That happens when swipe through my business card too. It ask for a PO/Reference number. I don't think it has anything specifically to do with the Lowes card.

[David Weaver]

5% discount, rewards, easy accounting - what's not to love about it?

Carrying more and more cards around, and following more bills around. Wife has a target card. I wish they would just let you get a 5% discount for using cash instead.

Home depot and lowes were great when they were in the phase that they wanted to increase market share. Once they saturated the market, in my opinion they both got greedy with prices and they're pushing on both ends pretty hard trying to drive earnings (i.e, do whatever it takes to get the cheapest tool shaped objects possible and push the limits of taste on what you ask for them).

The gimmicks to give 5% here or there just aggravate me even more because it's no longer about giving you something decent, it's about testing what your tolerance is for junk. Unfortunately, most of our local places that don't cater to professionals only have followed the trend.

[Rich Engelhardt]

The Lowes business credit card?

Lowes has two different business credit cards. One is an American Express card, which is good anywhere that takes American Express. The other is like the Home Depot business card that's only good on purchases at the respective store.
If it's just you buying materials and your not worried about the "hired help" running around with an American Express card, you might want to look into switching over to the AE business card.
Those reward points can pile up to quite a bit.

Either way, it's a nice feature I wish Home Depot would start doing. The only way I've found at Home Depot to use a PO is to use their commercial account.

[Steve Peterson]

I like the speed of the self checkouts at places like Home Depot. The traditional lanes always seem to have someone in each lane with a cart piled with stuff. And it only takes one missing bar code to stall the line while waiting for a price check.

What bugs me is when they only have one traditional lane open. If I have sheet goods or lumber, then the self checkouts don't work very well and you are stuck waiting in the one really slow lane.

Steve

[David Drickhamer]

I refuse to use self checkouts. There are enough unemployed people out there. While shopping once the checkout person told me I could have used the self checkout. When I told him my reason for not using it, he thanked me,
Why should the store make more money by putting people out if work? If the store wants me to check myself out give me a discount ( I still wouldn't use it ) or put me on the payroll.