Self-checkout theft causing problems for retailers and shoppers who despise receipt checks

For Brian Simpson, a recent routine shopping trip to a Canadian Tire store in Toronto turned into an unsettling experience. He saysafter paying for his items at a self-checkout, a security guard blocked him from exitingand demanded to see his receipt.

"It made me feel like a suspect, like I had done something wrong,"Simpson said. "I don't like that they're ... painting us all with the same brush, that they're assuming that everyone who uses self-checkout is going to steal."

The Retail Council of Canada (RCC) told CBC News that shoplifting is on the rise and that it's working with retailers on solutions. Some major retailers have adopted random receipt checks in selectedstores, but the practice has sparked backlash from shoppers, who saythey shouldn't have to pay the price for self-checkout theft.

"It's treating us like criminals because of the changes that they made to the store because of this expansion of self-checkout," said John McCracken, who encountered a receipt check warning sign last month at a Loblaw-owned Superstore just outside Halifax.

"If you've ever used the self-checkouts, you know how unbelievably easy it is to rip them off."

So just how bad is the self-checkout theft problem and is it the driving force behind receipt checks? CBC News put those questions to Canadian Tire, Walmart andLoblaw Companies Ltd., which haveeach incorporated the checksin some capacity. None directly answered the questions.

Canadian Tire said in an email that receipt and bag checks, which are left up to the discretionof individualstore owners, are commonly used in the industry for "inventory control." Walmart said receipt checks can be used fortheft prevention, but it didn't specify what type of theft.Loblawdirected comment to the RCC, but the retail councilsaid it doesn't track self-checkout losses.

So CBC News turned to criminologist Adrian Beck, who has studied self-checkout theft for more than a decade. He said it's a growing problem due to the expansion of self-checkout machinesand the fact that thieves feel the risk of getting caught is low.

"We've got a larger proportion of people using them, and quite a lot of people now are feeling more comfortable about how you might be able to use and abuse these systems," said Beck, an emeritus professor at the University of Leicester in England.

As part of an industry-funded study published in 2022, Beck surveyed 93 retailers (he wouldn't provide names) spread across 25 countries thathave incorporated self-checkout technology.

According to the study, retailers estimated that as much as 23 per cent of their store losses were due to a combination of theft and customer error at self-checkouts.

Two-thirds of the retailers said self-checkout-related losses were a growing concern.

The carrot trick

Sometimes customers make honest mistakes at self-checkout, suchas accidentally failing to scan an item. Beck said that can embolden thievesto steal, because they feel they have a good excuse if they get caught.

"I can simply say, 'You know what, I'm sorry, I've obviously made a mistake. The machine was difficult to use,'" he said. "The real issue that retailers have isthey find it very difficult to prove that I am a thief as opposed to a poor scanner."

Beck said there are various methodsthieves use to steal at self-checkouts, such as inputting the code for carrots when scanning pricier produce without barcodes, such as grapes, for example.

"They're misrepresenting what they're actually purchasing because they know carrots are a lot cheaper than grapes."

WATCH | Loblaw customers protest receipt check signs in stores:

Loblaw customers angry about receipt checks

1 year ago

Duration 1:54

Loblaw customers are disgusted by signs posted in stores that say customers must be prepared to show their receipts to validate their purchases. Some say it adds insult to injury with inflated prices and call the search of bags an invasion of privacy.

Another trick is called "skip scanning," where thieves scan only some of theiritems. Tom Doyle, a plain-clothesinvestigator who patrols Ontario retail stores, saidhe frequently catches people doing this at self-checkouts.

"They'll scan the oranges there, but they'll put the steak [directly] in the bag," said Doyle, with Corporate Protection & Investigative Services in Toronto. "If there's $200worth of groceries, they might pay $50."

Doyle saidin his experience, self-checkout thieves tend to be average shoppers looking to cut down their bill.

"Prices are going up on everything," he said. "They say, 'That's too expensive. I can use that $20for something else.'"

Are receipt checks a good solution?

Beck said retailers are using various techniques to combat self-checkout losses, such as training attendants to watch over customers, incorporating technology like surveillance camerasand doing random receipt checks.

But receipt checkscan be a turnoff for customers.Romina Moazamisaid, several times earlier this year, she was asked to show her receiptafter using self-checkout at aCanadian Tire in Burnaby, B.C. Moazami says she's now boycotting the store.

"Why are you profiling me as a suspect?" she said. "I'm willing to pay more or drive farther, just so I don't condone this behaviour."

Toronto Canadian Tire customerSimpson said stores grappling with self-checkout theft should consider pulling their machines. "Maybe you need to rethink whether or not self-checkout is right for your location."

But Beck suggests retailers will keep offering self-checkout, as long as the money they save from reduced labour costs is higher than what they lose due to theftand scanning mistakes.

"The amount of self-checkout is only ever going to grow, particularly in grocery where we see it is very dominant now," he said.

Receipt checks may also be here to stay. Despite the backlash, Canadian Tire, Loblaw and Walmart gave no indication that they're reconsidering the practice.

According to legal experts, retailers can't enforce receipt checks unless they witnessed a shopper stealing, or their customers havesigned upfor a store membership, such as at Costco,where they agreed to the checks.