Digitalisation has profoundly changed the retail industry in recent years. One of the most visible innovations is the triumph of self-service checkouts in supermarkets, drugstores and DIY stores. What many customers see as a convenient alternative to traditional checkouts is increasingly becoming a security and financial problem for many retailers. This is because automation brings with it new challenges, particularly when it comes to theft. The current situation is forcing numerous retail chains to rethink their approach.

Digital progress with side effects

Self-service checkouts have long been part of everyday life for many consumers. The devices are particularly popular in urban areas, where they enable quick, independent shopping without long queues. According to a YouGov survey, around ten percent of Germans use self-service checkouts exclusively. Acceptance is particularly high among 18- to 24-year-olds. This development is in keeping with the spirit of the times: efficiency, autonomy and speed are defining values of modern consumer culture.

But there is a downside to this convenient shopping experience: a recent study by the EHI Retail Institute shows that shoplifting will cost German retailers a record €3 billion in 2024. A growing proportion of these losses is attributed to stores with self-service checkouts. Although the correlations have not yet been statistically proven across the board, many retailers report noticeably higher inventory discrepancies in the vicinity of self-service checkouts.

Between carelessness and systematic behaviour: the new quality of theft

In the past, shoplifting was often a crime of opportunity – today, a system has become established in many places. According to EHI, around a third of customer thefts are classified as commercial. These are often carried out by lone perpetrators acting on behalf of others or by entire gangs with precisely coordinated methods. Popular targets are compact, expensive products such as cosmetics, alcoholic beverages, razor blades and baby food. Drugstores and self-service markets with a wide range of products are particularly affected.

In addition, there are offences that appear harmless at first glance: deliberately scanning cheaper types of fruit or leaving individual products behind is often perceived as a minor offence – but it is punishable by law. Whether intentional fraud or mere carelessness, the total losses are considerable. Damage caused by customers alone amounts to around 2.9 billion euros annually. Together with theft by employees, suppliers or logistical errors, the total damage in the retail sector rises to almost 5 billion euros.

Self-service checkouts as a catalyst for a crisis of confidence?

The security situation at self-service checkouts is becoming a structural dilemma for many retailers. While large chains such as Rewe, Edeka and Ikea are continuing to expand their self-service infrastructure, others are opting for dismantling or tighter surveillance. Exit barriers, AI-based camera systems and undercover detectives in control rooms are becoming the new standard in many places.

An example from Regensburg illustrates how systematically behaviour at self-service checkouts is analysed today. The reactions on social media were mixed: there was surprise, approval, but also criticism of the surveillance. Many customers were surprised at how closely their shopping behaviour is now being monitored.

At the same time, many retailers are frustrated about the low clearance rate. According to EHI, around 98 percent of all shoplifting incidents go undetected or unpunished. Even when reported, many cases come to nothing – either because the offences are minor or because the judicial authorities are overburdened. This not only undermines deterrence, but also trust in the state’s protection of property. The German Retail Association (HDE) is therefore calling for more consistent prosecution and greater support from the police and judiciary.

Staff shortages meet sluggish consumption

Another factor fuelling the triumph of self-service checkouts is the tense staffing situation in the retail sector. According to a forecast by the German Economic Institute (IW), there could be a shortage of tens of thousands of skilled workers by 2027 – more than in any other industry. In this situation, self-service checkouts appear to be a pragmatic solution: they enable virtually smooth operation with fewer staff. Rewe CEO Lionel Souque praised self-service checkouts as an opportunity to deploy existing staff more effectively in customer service or shelf maintenance.

But the downside is obvious: the fewer employees there are on the shop floor, the greater the risk of theft. Studies show that social control is a decisive factor in crime prevention. Where this is lacking, not only does the opportunity increase, but so does the temptation.

International perspectives: looking beyond the horizon

The tension between self-service convenience and security is also a hot topic internationally. In the United Kingdom, large retail chains such as Tesco and Boots are complaining about increasing customer complaints: technical errors, poor usability and the feeling of ‘being responsible for the cashiers’ work’ have led some companies to reduce the number of self-service checkouts again. In the US, retail giants such as Walmart and Target are focusing on new concepts: restrictions on the number of items, increased supervision or even the complete shutdown of self-service checkouts in high-risk stores are part of a growing security strategy.

These developments show that technology alone cannot solve the problem. Rather, a careful balance must be struck between automation, customer needs and security requirements. In a country like Germany, which is already facing inflation, consumer restraint and demographic change, an ill-considered expansion of self-service checkouts could create new problems rather than solve existing ones.

High-tech against shoplifters – but at what price?

The retail sector is responding with massive investments in security technology. In 2024, retailers in Germany spent around 1.6 billion euros on preventive measures. In addition to traditional security cameras, intelligent systems are increasingly being used: AI-supported pattern recognition, biometric procedures, automatic motion analysis and warning systems for scanning anomalies are designed to help detect potential theft at an early stage.

But this high-tech offensive also has a downside. Data protection is coming under pressure, as is customer trust. When shopping becomes a controlled situation and every movement is analysed, the shopping experience is likely to suffer. Last but not least, there is the ethical question: to what extent can a company preventively interfere with privacy – and when does control become surveillance?

Conclusion: a balancing act between progress and responsibility

Self-service checkouts are here to stay – there is cross-industry consensus on this. They stand for speed, flexibility and a response to the ongoing shortage of skilled workers. But they are not a sure-fire success. Rising shoplifting, increasing security needs and a loss of trust in the system are revealing the limits of this technology.

The future probably does not lie in a radical ‘either/or’ approach, but in a well-thought-out ‘both/and’ approach: human presence must be complemented by smart technology – not replaced. A sustainable security concept that takes both economic and ethical aspects into account will be crucial. Ultimately, it is not just about protecting goods, but about the very foundation of retail: customer trust.