The State of Self-Checkout in 2026: What Independent Grocers Should Know

Is self-checkout on its way out?

Big-box retailers and independent grocers have two completely different answers.

Chains like Target, Walmart, and Dollar General are scaling back self-checkout, citing high theft and labor costs. Meanwhile, small and rural grocers are fully embracing self-checkout to help them tackle their biggest challenges, including labor shortages and thin margins.

In this blog, we’ll explore the self-checkout trends shaping the grocery industry from both angles — and help you decide whether self-checkout is the right fit for your local market.

Big-Box Retailers Are Pulling Back From Self-Checkout

Self-checkout has become a staple in today’s shopping experience — but several of the country’s largest retailers are quietly reversing course.

Target, Walmart, and Whole Foods are just a few of the mega chains that have scaled back self-checkout. Other businesses like Dollar General and Five Below have removed it entirely from some of their highest-risk locations.

Let’s look at the two biggest reasons behind this shift:

• Rising theft and shrinkage: With 27% of consumers admitting to stealing at self-checkout counters, many retailers are switching back to traditional staffed registers.
• Reassessing labor savings: Massive stores with multiple self-checkout kiosks require several staff members to supervise and solve issues — meaning smaller-than-expected labor savings.

In short, heavily relying on self-checkout simply isn’t worth it anymore for massive grocery chains.

Proposed Self-Checkout Regulations

Proposed bills regulating retailers’ use of self-checkout have also impacted the grocery industry.

Rhode Island became the first state to pass self-checkout-related regulations, requiring one staffed cashier lane for every three self-checkout stations.

States like California, New York, and Massachusetts have considered similar laws that would prohibit stores from operating more than eight self-checkout kiosks, require retailers to operate one traditional checkout counter at all times, or limit the number of items customers can purchase at a self-checkout kiosk.

To be clear, most of these bills haven’t been passed — they’ve either been tabled or are still in early discussion among lawmakers. However, they’re still shaping how major retail corporations see self-checkout’s role in their operations.

Note: These proposed regulations shouldn’t have much of an impact on small retailers’ use of self-checkout — especially since few locally-run grocery stores operate more than eight kiosks or exclusively offer self-checkout.

The Opposite Trend: Self-Checkout Adoption Is Rising Among Independent Grocers

While bigger players lean away from self-checkout technology, independent grocery retailers are going the opposite direction.

In fact, Luke Henry, an industry expert who works closely with grocers across the country, says he’s seen an increase in the number of stores who want to rely exclusively on self-checkout rather than hiring cashiers. The rise of self-checkout-only grocery stores and markets is most popular in rural areas.

The data confirms this trend. Despite mega-chain supermarkets reducing their reliance on self-checkout, adoption is still growing — with a 6% increase in the number of food retail transactions being processed through self-checkout in the past year.

When we look at independently owned grocery stores and local markets, it’s easy to see why they’re investing in self-checkout. It’s a valuable tool for independent retailers who want to protect thin margins, compete on convenience, and get the best of both worlds in terms of excellent customer service and lower operating costs.

Is Self-Checkout Right for Your Grocery Store? 3 Reasons It Might Be

While national chains are recalibrating, neighborhood markets and local grocery stores are realizing how valuable it can truly be — as long as it’s implemented the right way.

Wondering whether self-checkout is a fit for your business?

Let’s take a look at three signs that adopting self-checkout could be a winning strategy for your store.

1. You Want To Save on Operational Costs

Finding and retaining quality cashiers is harder than ever, especially with rising wages and an ongoing labor shortage.

Self-checkout can ease these pressures, allowing you to shorten checkout lines without hiring additional cashiers.

This is a smart strategy if your store only gets busy at peak times. Instead of paying a cashier all day to handle rush hour, you can open up one or two self-checkout stations to reduce the demand on your staffed registers.

These savings are huge for small businesses like local markets that operate on razor-thin margins.

Related Read: Stop Shoplifting at Self-Checkout: 3 Strategies That Really Work

2. You Trust Your Customers

Trust: It’s one of the biggest advantages independent and rural grocers have over big-box chains.

In a small town or tight-knit neighborhood, customers aren’t anonymous — they’re regulars you see each week.

This is why our grocery industry expert, Luke Henry, says many rural grocers are switching to a self-checkout-only model. They know and trust their customers, and they save big on labor and operating costs. It’s a win-win.

Even if your grocery store is a little bigger, you can invest in a few security measures like security cameras and smart point of sale (POS) software to deter self-checkout theft.

3. You Want To Stay Flexible

Self-checkout isn’t an all-or-nothing decision.

Many smaller retailers choose to invest in convertible registers, which can switch between self-checkout and traditional staffed mode in seconds. This gives them the flexibility to adjust from day to day depending on staff availability and customer preferences.

If you notice theft-related shrinkage skyrocketing after implementing self-checkout, switching back is easy.

Convertible hardware can also give you peace of mind as self-checkout regulations change. If your state ever adopts a law like Rhode Island’s, which requires one staffed lane for every three self-checkout stations, you can comply without an expensive rebuild.

Our Recommendation: Invest in Convertible Hardware and Experiment With Self-Checkout

So, is self-checkout going away? Not for independent grocers.

Big-box chains are pulling back because self-checkout no longer makes sense at their scale — but local markets and rural grocers are leaning in because it solves some of their biggest problems: thin margins, staffing shortages, and communities that depend on them.

If you’re considering adopting self-checkout for your grocery store, we recommend investing in convertible hardware and keeping a close eye on your sales, shrinkage, and customer satisfaction.

The best part? Convertible hardware is much cheaper to get started with. IT Retail’s convertible system costs under $5,000, while traditional self-checkout machines start at around $40,000.

See whether IT Retail’s POS software and self-checkout are the right fit for your grocery store by scheduling your personalized demo with one of our industry experts today.