As convenience store chains look to upgrade their technology integration and create more efficient experiences for their customers, they’re browsing self-checkout and frictionless technology for their stores.

Although some chains are opting out of self-checkout for various reasons, many have decided to install kiosks or other payment solutions if they feel the technology will entice customers.

That said, theft is one of those reasons why some c-store retailers are turning away from self-checkout.

“I have noticed the larger companies are moving away from self-serve due to inventory losses,” said Raymond Huff, president at HJB Convenience, which operates seven Russell’s Convenience locations in Colorado, Michigan, California and Hawaii, three of which are Russell’s Xpress — self-serve stores in high-rise office buildings. “In our market in Denver, Walmart has closed most of their self-serve and reopened manned cashier stands; in the self-serve area they now have two attendants, one for each side.”

Aside from this drawback, however, many chains are finding self-checkout or other frictionless options useful.

Self-Checkout Success

Huff created Tenderfoot, a point-of-sale (POS) software company, to handle his specific store setups. For Xpress locations, customers can scan their purchases at self-checkout kiosks in the mostly unmanned convenience stores.

“Stores are 24/7 access through our rewards club, also developed by Tenderfoot. Entering your rewards phone number will unlock the door,” he said.

His goal is to continue to use self-service and frictionless checkout technology at his stores, particularly as office buildings reawaken. Currently, Huff has two of his stores in hibernation until office occupancy returns.

He recognized that advanced technology such as his can be lucrative in the right setting.

“On a recent trip to Twin Falls, Idaho, for the Conexxus Strategy Conference, I saw two truck stops with 12 self-serve (self-scan items and pay stations),” said Huff. “It looks like (self-checkout is) not going away but is being used judiciously where appropriate.”

Clark’s Pump-N-Shop installed its first self-checkout kiosk in 2021.

“We have several locations in the metro areas; we felt like the consumer base would appreciate the (self-checkout) option,” said Jessica Russell, food service director, Clark’s Pump-N-Shop.

The chain, with over 65 stores in Kentucky, Ohio and West Virginia, is committed to installing self-checkout kiosks in all new builds. In 2023, self-checkout was added to six new-to-industry locations.

Russell noted Clark’s offers fast service at its stores, so there isn’t typically a long wait to check out.

“I do think if our service was different — we are thankful it is not —  that the traffic on the self-checkout would be much larger,” she added. “Kudos to our staff for maintaining the motto ‘fast, friendly service!’”

Customers can enjoy the personal touch of checking out with a Clark’s employee if they wish, but the self-checkout is there to offer flexibility.

Future Outlook

Prior to 2022, Huff believed the industry would shift to a walk in/walk out model via cameras and artificial intelligence (AI).

“With Whole Foods dropping their expansion using this technology, it has not proven out,” he said. “Multiple c-store vendors have attempted a rollout of just ‘walk in and out’ and have pulled the systems as their customers found the sign-in procedure untenable.”

This doesn’t mean, however, that convenience store chains can’t find the system that works for them. Although complex AI-based frictionless checkout is still relatively new to the c-store scene, many retailers are testing the technology and watching to see how it might work in their market areas.

Russell’s Xpress, for instance, found the model that suits its customers. Other chains are researching different types of self-checkout, including AI-assisted versions that allow customers to scan each item simultaneously.

Frictionless checkout also includes the ability to pay from a mobile device or tapping a card on the POS reader, which is becoming more customary each year.

“Ultimately, I believe a system for the masses will be discovered, where the inventory (theft) issue is resolved,” said Huff, touching on the self-checkout pain point. He noted, however, that he believed the industry would already be at that point by now.

For those convenience store retailers considering investing in self-checkout, Clark’s Russell recommended the stations be near the front of the store and only accept card, not cash. With this setup, Clark’s hasn’t had many issues with the units.

Huff stressed the importance of finding a POS vendor that can support a retailer’s rewards program and create an easy-to-use scan system. He referenced grocery as a retail format where scanning can be difficult due to produce lookup.