Most retailers agree self-checkouts deliver value. In fact, eight in 10 of them agree the investment in self-checkouts is paying off as this technology allows associates to work on higher value tasks and improves the customer experience. However, about 80% of retail decision-makers and associates agree store shrinkage and theft is a major issue with self-checkouts.
The 16th Annual Global Shopper Study by Zebra Technologies, a leading digital solution provider, has shed light on some of these pressing issues. The study, which surveyed over 4,200 shoppers, store associates, and retail decision-makers globally, revealed that retailers are struggling to manage online returns and reduce shrinkage caused by theft, fraud, and other factors.
According to the National Retail Federation (NRF), retailers lost a staggering $112 billion due to shrink in 2022, a significant increase from nearly $94 billion in 2021. The study found that 82% of retailers view minimizing fraud and shrink as a significant challenge, while 86% believe that the ability to forecast demand is crucial for their organization. To combat these issues, many retailers plan to deploy loss prevention analytics (49%) and demand planning and forecasting (54%) by 2026.
While omnichannel shopping causes challenges for retailers, most shoppers prefer options. Eight in 10 favor a blend of online and in-store shopping, and 75% choose to shop with online retailers that have a brick-and-mortar location. As omnichannel shopping continues to grow, the volume of returns increases along with it. Seven in 10 retailers say the pressure is mounting to improve the efficiency and expense of managing online orders, returns, and the fulfillment process. Six in 10 retailers say they are upgrading their returns management technology by 2026.
Store associates will be pleased with this technology investment. Among associates managing returns from online orders, nearly three-quarters (74%) cite frequent returners as their top challenge. This year, the ease of making returns has moved ahead as a leading reason shoppers choose to shop in stores, outpacing comparison shopping. The increase of returns has impacted retailers globally, growing to $1.8T, according to the IHL Group.
Matthew Guiste, Global Retail Strategy Lead at Zebra Technologies, emphasized, “Retailers simply can’t keep doing what they are doing when it comes to returns,” said Matthew Guiste, Global Retail Strategy Lead, Zebra Technologies. “While consumers are demanding the ability to easily return items more frequently, retailers find themselves in a tailspin trying to manage the increased expenses associated with inventory visibility, reverse logistics and a high-level of returns. Despite their best efforts and capital expenditures, the problem has progressed, not improved.”
The study also highlighted the growing preference for digital payment applications among shoppers. Retailers are tapping into the power of technology to help manage returns with 62% saying they plan to deploy reverse logistics technology by 2026 to better manage fulfillment pressures. Nearly three in 10 (31%) of retailers think charging a fee for online orders from frequent returners could potentially improve the overall profitability of online orders.
The study underscores the need for retailers to adapt to changing consumer expectations and leverage technology to enhance the shopping experience. “To successfully operate a modern store today, it’s critical retailers invest in technologies that elevate the customer experience, engage associates and optimize inventory,” said Guiste. “Consumers demand the way they browse, acquire, consume, and return merchandise to be seamless wherever they shop. This shift requires retailers to work in new ways with technology to deliver the shopping experiences consumers expect, more profitably.”
Since 2020, the number of shoppers who favor digital payment applications have increased substantially; solutions like ZebraPay align with this trend. Those preferring pay/checkout anywhere in-store almost doubled from 15% to 26%, mobile payments jumped from 33% to 50% and “just walk-out” to avoid a long checkout line doubled from 14% to 30%. Meanwhile, 48% of consumers opt for self-checkouts with 75% saying it helps improve their experience.
Most retailers agree self-checkouts deliver value. In fact, eight in 10 of them agree the investment in self-checkouts is paying off as this technology allows associates to work on higher value tasks and improves the customer experience. However, about 80% of retail decision-makers and associates agree store shrinkage and theft is a major issue with self-checkouts.
