Five Below has made changes to its self-checkout system because more people have been stealing from their stores. Many customers are upset about these changes and say that a few troublemakers are the reason for the new rules.
New Checkout Changes at Five Below
Five Below's boss, Joel Anderson, shared updates about the shopping process at their stores.
Customers will notice fewer self-checkout stations and more workers ready to assist at the registers, as reported by The U.S. Sun. The store is also bringing back cashiers at all their locations.
Anderson mentioned these adjustments are due to a rise in shrink, which means more items are being lost or stolen.
These stores will mostly have cashiers, not self-checkout stations. The company is also starting to check receipts, add more staff, and increase security.
Anderson explained, "We're aiming for 75% of purchases to be helped by a worker across all stores. For those with the most theft, we want every purchase to involve an employee."
He revealed that Five Below tried various ways to stop theft from late Q3 and Q4. These included testing new product placements, changes at the front of the store, and hiring security guards.
The retailer, which has over 1,500 stores, will share its earnings for the second quarter on Wednesday. Anderson stated that Five Below has now shifted to having staff assist with checkouts everywhere. This change came after attempts to reduce self-checkout and position employees at store entrances didn't significantly lower theft in January.
"Shrink" is the term businesses use for losses due to theft or other reasons. It's a challenge not just for Five Below but for many stores lately.
Five Below's earnings for the last quarter were $3.65 per share, which Anderson said was lower than expected mainly because of theft. However, the company's sales went up by 19.1% to $1.34 billion compared to last year.
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Retailers Adjust Checkout Options Amid Theft
Anderson shared that in stores where theft is most frequent, employees are now checking customers' receipts and more security guards have been hired to enhance safety.
This month, Dollar General also changed its checkout process. It plans to remove self-checkout services from 300 stores and introduce staff-assisted checkout in 9,000 locations.
The move by retailers to modify self-checkout options comes amid worries that these systems make it easier for theft. Some shoppers may not scan all their items or may scan expensive items as if they were cheaper.
Target is also taking steps to address this issue by limiting self-checkout to only 10 items or less in most of its stores. Additionally, Target is giving store leaders the authority to reduce the hours during which self-checkouts are available.
Meanwhile, people are using Facebook to express their opinions on recent changes in retail store policies. A lot of them say theft is the reason for these new rules.
One user commented, "A few wreck it for everyone," showing frustration over the situation. "Same old," wrote another, suggesting this isn't a new problem.
"Retail theft is out of control," another person added, highlighting how big the issue is, especially mentioning Los Angeles as a hotspot.
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