Published: 1st December 2025
Think you know SCO? Think again.
At BOXTEC, we’re often asked whether introducing self-checkout inevitably leads to higher shrinkage. The short answer? Yes and no.
The debate around SCO often centres on theft or non-scanning, but that’s only part of the story. The real question is: what does SCO mean for your bottom line? When you look beyond shrinkage, the financial case becomes much more compelling.
SCO: From Option to Expectation
Self-checkout has become part of everyday retail life. Once the preserve of supermarkets, SCO now appears in DIY, fashion, and general merchandise stores.
But with this rise comes scepticism. Headlines still link SCO to shoplifting or scanning errors, often missing how far the technology and its benefits have evolved.
Artificial intelligence, weight verification, and video analytics are now helping retailers reduce risk and improve checkout efficiency at the same time.
Understanding the Impact of Shrinkage
Studies have shown that stores where 70% or more of transactions pass through SCO systems see an average 0.2-point increase in shrinkage.
The Grocer adds that up to 80% of supermarket transactions are now processed through self-service. Even small percentage changes in loss rates can therefore translate into big financial numbers. While that sounds concerning, context matters.
For example, in a store with £10 million in annual sales, a move from 1.4% to 1.6% shrinkage equates to around £20,000 in extra loss. Significant – but not the full picture.
Retailers are already offsetting that with advanced controls: AI video analytics, weight checks, smart staffing ratios, and randomised receipts all help keep loss levels in check.
The Staffing Equation
Where SCO truly earns its keep is through labour efficiency. Studies (including this ECR Loss report) show that each self-checkout can save between 0.6 and 0.8 full-time equivalents (FTEs), depending on the store.
Even allowing for one colleague to supervise six to eight SCO units, the overall staff cost reduction remains substantial. Scaled across a chain, these savings can easily outweigh both the technology investment and any small increase in shrinkage — generating a strong net gain.
Turning Insight into Impact
At BOXTEC, we use a data-driven ROI framework to evaluate how SCO affects profitability.
Our proprietary ROI Calculator models the relationship between three key performance drivers:
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Labour efficiency gains = fewer hours needed at checkouts
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Operational investment = SCO hardware, deployment, and support
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Shrinkage variation = minor shifts in loss rate after rollout
By analysing these factors together, we reveal how self-checkout can deliver measurable financial returns, often within months.
BOXTEC ROI Calculator*:
Store Size: 10,000 sq ft
SCO Units: 6
Staff FTE: 20
Avg. Transaction: £25.00
Projected ROI: 14 Months | Potential Annual Saving: £42,000
*Illustrative data only – live model shown in consultation
Our ROI Calculator isn’t publicly available. Instead, it forms part of a tailored consultation where we apply your operational data to illustrate savings, payback period, and overall impact!
It’s a transparent yet exclusive way to see how SCO could transform profitability across your estate.
The Bottom Line
Negative headlines may focus on shrinkage or reduced human contact, but the bigger picture tells a different story.
When you factor in labour savings, rising wage costs, and efficiency gains, the financial case for SCO is stronger than ever.
At BOXTEC, we’re passionate about self-checkout solutions that perform – delivering measurable results and sustainable ROI.
