NEW YORK — Major retailers including Walmart, Dollar General and Costco are scaling back or rethinking self-checkout systems as surging theft rates, customer complaints and proposed legislation in multiple states force a broader industry shift back toward staffed registers. The move reflects growing frustration with “shrink” — industry term for inventory losses — that studies show can increase by up to 65 percent at self-service kiosks compared with traditional checkouts.

Dollar General took the most dramatic step in 2024, removing self-checkout entirely from its more than 12,000 stores nationwide to combat theft and improve customer experience. Walmart has eliminated self-checkout lanes in select high-shrink locations, including a South Philadelphia Supercenter, while planning remodels at hundreds of stores that prioritize hybrid or fully staffed options. Costco has introduced staff-assisted scanning in lines but stopped short of full removal.

The changes come as lawmakers in states including California, Connecticut, Massachusetts, New York, Ohio, Rhode Island and Washington consider bills that would limit self-checkout usage. Proposals range from requiring minimum staff-to-kiosk ratios and item caps — often 10 or 15 items — to mandating a balance between self-service and employee-operated lanes. None have passed yet, but the legislative momentum signals rising political pressure on retailers to address retail theft.

A 2026 Capital One Shopping Research study found that while 86 percent of consumers use self-checkout, more than 36 million Americans admit to stealing from the kiosks. Theft at self-checkout can be unintentional — missed scans or bagging errors — or deliberate. Either way, it contributes to billions in annual losses that retailers ultimately pass on to consumers through higher prices.

Walmart has cited customer feedback and a desire for more personalized service in its decisions to reduce self-checkout. The world’s largest retailer continues experimenting with automation but appears to be striking a balance after years of aggressive rollout. Remodels at more than 650 stores and plans for new locations emphasize improved checkout experiences. Similar trends appear at Target and other chains testing limits or hybrid models.

Retail experts point to several factors driving the shift. Self-checkout promised labor savings and faster lines but delivered unintended consequences. Theft has risen sharply in recent years, fueled by organized retail crime and opportunistic shoplifting. Technology limitations, such as imperfect item recognition, compound the problem. Customer frustration with malfunctioning kiosks or long bagging times has also grown.

Costco’s approach differs slightly. The membership warehouse club has rolled out staff members who scan entire carts before customers reach payment terminals, combining speed with oversight. While not eliminating self-checkout entirely, the system reduces opportunities for error or theft. Other retailers are exploring AI-powered scan-and-go technologies, such as those tested by Sam’s Club, to maintain convenience while adding security layers.

Proposed state laws reflect public and political concern over retail theft’s impact on communities and businesses. Bills aim to curb losses that force store closures or price increases, particularly in urban areas hit hardest by organized crime. Retail trade groups argue that overly restrictive rules could hurt efficiency and raise operating costs, potentially leading to fewer jobs or higher prices. A balanced approach focusing on technology improvements and enforcement may prove more effective.

The self-checkout boom began years ago as retailers sought to cut labor costs amid rising wages and post-pandemic staffing challenges. Early adoption brought convenience for shoppers and efficiency gains. Over time, however, data showed higher shrink rates and mixed customer satisfaction. Pandemic-era shifts accelerated installation, but the technology’s limitations became more apparent as theft surged.

Industry analysts expect more hybrid models going forward. Full removal like Dollar General’s may remain rare among larger chains, but reductions and technological upgrades will likely become standard. AI monitoring, better item recognition and integrated security cameras could mitigate risks while preserving convenience. Retailers must balance cost savings with loss prevention and customer experience.

For shoppers, the changes mean potentially longer lines but greater accuracy and security. Many consumers appreciate the human interaction at staffed registers, especially for complex transactions or when seeking assistance. Others prefer the speed of self-checkout for small purchases. Retailers are experimenting with tiered systems — self-checkout for quick trips and full service for larger hauls.

The shift also highlights broader retail challenges. E-commerce competition, inflation and changing consumer habits continue pressuring brick-and-mortar stores. Theft, whether organized or opportunistic, erodes margins and affects store viability in certain markets. Addressing it requires a combination of technology, staffing, legislation and community efforts.

As Walmart, Dollar General, Costco and others adjust strategies, the industry watches closely. Success in reducing shrink while maintaining customer satisfaction could set new standards for checkout experiences. Failure might accelerate calls for stricter regulations or further rollbacks. The coming months will reveal how effectively major retailers navigate this complex landscape.

For now, shoppers should expect evolving checkout options at their local stores. Checking apps or asking associates about available lanes can help avoid frustration. As retailers rethink self-checkout, the goal remains providing safe, efficient and pleasant shopping experiences in an era of heightened challenges.