Should Trader Joe’s Add Self

Jun 14, 2024

On a recent company podcast, Trader Joe’s CEO, Bryan Palbaum, and president, Jon Basalone, both strongly denied rumors that the grocer was planning to offer self-checkout options.

“That’s as false as false can be,” said Basalone. “We believe in people and we’re not trying to get rid of our crew members for efficiency sake or whatever the, I don’t know what the reasons are people put self-checkout in.”

Palbaum interjected in the conversation, describing the scanning and bagging that comes with automated kiosks as “not fun.” He added, “Self-checkout is work. I don’t want that.”

Basalone also noted that self-checkout can be complicated. He pointed to a time he needed assistance at a retailer after being unable to scan items. He said, “I’m like, I do this for a living, and I can’t get this thing to work.”

Self-checkout options increased during the pandemic due to social distancing concerns and advances in automation, and it helped retailers better manage high labor shortages and costs.

Costco and Albertsons are among chains bringing back self-checkout stations in recent years after eliminating them about a decade earlier. Kroger, Walmart, and Dollar General are among retailers piloting exclusively self-checkout stores.

Recent consumer surveys from Raydiant and Zebra Technologies further show that consumers are increasingly preferring self-checkout options largely to avoid waiting in cashiered checkout lines.

A recent survey from PlayUSA found that 66% of U.S. consumers (84% of Gen Z and 76% of Millennials) would choose to use a self-service kiosk over a human-run checkout. Seven in 10 (71%) said it’s because human-run checkouts take longer, while 60% indicated it’s to avoid human interaction. Still, 75% of PlayUSA’s survey respondents believe tech-based interactions have led to a decrease in social skills, and 68% think it’s led to a decrease in empathy.

In July, Sparkle Markets, with 18 locations in Pennsylvania, Ohio, and West Virginia, joined Trader Joe’s in vowing not to add self-checkout. The grocer’s president, Vincent Furrie Jr., said in a Facebook post, “In times like this, jobs are more important than ever. We value the person at the register — we hope you do as well. Helping one another just cannot be replaced.”

DISCUSSION QUESTIONS: Will Trader Joe’s increasingly be at a competitive disadvantage by not offering a self-checkout option? Has offering a self-checkout option become an expectation at grocers?

How confident are you that the majority of grocery shoppers now prefer self-checkout kiosks to traditional checkout lanes with human cashiers?

View Results

You must be logged in to post a comment.

It is very rare to get a bad cashier at Trader Joe’s. Almost all of them are extremely pleasant and interacting with them is part of the positive experience of visiting the store. They are also highly efficient at scanning and packing, which means they shift people through the registers quickly. Self-checkout would disrupt all this, so it is not surprising that Trader Joe’s has no plans to introduce it. On top of this, the smaller size of most of Trader Joe’s stores would make self-checkout more challenging than in much larger supermarkets. Of course, just like shunning online, this decision is made easier by the fact Trader Joe’s is a fantastic retailer that secures loyalty off the strength of its proposition.

I 100% Agree – I shop at Trader Joe’s all over the country. They’re my go-to store when I’m on the road for a few days and want to have food in my hotel. It’s remarkable just how consistent and pleasant my experiences are, no matter where I shop.

The reason would be that some customers actually do like self checkout, especially if all they have in the cart is center aisle packaged goods. I would have thought TJ would at least be open to testing the process on a regional basis. Or give store manages some level of discretion, based on localizing the experience and with full consideration to how the staff feels. It’s odd that they are slamming the door on the idea.

Pleasant interactions with employees, from the time you enter the store to when your bags are packed, and you’re on your way to your car, a big part of the Trader Joe’s brand. Self-checkout would torpedo that experience.

Trader Joe’s would be going totally off-brand if they added self-checkout. I also think these studies are misleading. Millennials want experiences and thrive on personal interaction. (See also board games.) Besides, TJ’s has some of the most personable folks at checkout you’ll find anywhere, and for a reason. It’s part of their culture and brand. I don’t think millennials are heading for the self-checkout area to be antisocial, they’re going there to get out of that cookie cutter store as quickly as possible.

I don’t believe that not adding self-checkout will put Trader Joe’s at a competitive disadvantage. Again, Trader Joe’s has a people-centric strategy, and this vow just illustrates the point. By the way, most of these big chains that have added self-checkout are missing the mark in some way—either through the people, process, or technology part—and should rethink everything sooner than later.

Agree 100%. Based on research I have been part of in the past, customers want self-checkouts to alleviate long lines more than any other reason. The problem with self-checkouts is that they almost always seem to have a problem, so they don’t speed the process along at the end of the day anyway. Customers love shopping at Trader Joe’s and I believe that the bright, sunny atmosphere and human-centric experience are key components in that equation.

I believe that we have the wrong perspective. The competitive advantage is not the self-checkout option itself. I’m an avid proponent of self-checkout lines because of the convenience they afford me; I don’t like waiting in lines. My Trader Joe’s is always busy and registers seem to open with incredible speed and ease when lines show even the slightest hint of building. Additionally, the cashiers are friendly but incredibly quick and efficient. To me, the service along with great product and prices is the competitive advantage and one that builds “profitable” loyalty for Trader Joe’s. And it’s possible that the overall competitive advantage that Trader Joe’s has meticulously built offsets any cost advantage that self-checkout lines may posses “on paper.” What should be expected of grocers is customer centric service which I believe can be delivered with or without self-checkout lines. In fact, I would argue that in some cases, self-checkout lines save grocers with bad customer service from themselves.

I think they call that retailer wishful thinking. And (I know I’ve said this once or twice), elimination of pain (waiting in too long lines replaced by SELF service) does not make for a good customer experience and it sure as heck doesn’t generate loyalty.

It likely won’t go away, but Trader Joe’s is a lot more fun.

The cashier experience at Trader Joe’s is uniformly terrific. Where they could use self checkout is to encourage people to shop for smaller basket sizes. The wait during prime shopping hours for some purchasing a couple of items can be daunting (I shop there for weekly needs never random purchases). So yes, they should add a couple per store and police it appropriately.

Self checkouts have their place, but self checkouts would be off brand at Trader Joe’s.

I have never heard a cashier or a bagger complain about their job or count the minutes until they can clock out at Trader Joe’s like they do at other retailers. Check out here is a pleasant and efficient experience, and it’s because of the crew members. This is the kind of success you don’t mess with.

Guessing T.J’s would have to take out 2 full service lanes to get maybe 4 self check stands into play. Not an earth shattering addition, and I bet the through put of 2 of the very personable cashiers removed would exceed the throughput of 4 self serve stands in any scenario. Other Grocers go self checkout to solve staff shortages, long full service ques and reduce expenses. None of those criteria apply to T.J’s.

Most people do not want self-checkout despite the push to automate everything. Take the cashiers out of Trader Joes’ and you remove their soul. Of course, they aren’t doing it.

The heart of the Trader Joe’s experience is friendly, efficient humans at checkout. They will NEVER embrace self-checkout.

Trader Joe’s cashiers and people are some of the best of the best in the industry. Engaging, interesting, helpful, and pleasant are some of their consistent traits that will fade into the ether if Trader Joe’s moves to self-checkout. Some of my best grocery memories are the quick conversations about meal recipes, new items, weekend plans, and even cocktail recipes. Retaining this human approach to retailing is key for Trader Joe’s continued success.

Self checkout would require a lot of modification to TJs front end, which is already a bottleneck for shoppers leaving the store. They’d be better off rethinking the store exit path.

With quick and efficient cashiers self checkout would not really speed up the overall process.

Self-checkout inspires a lot of debate. There are those that love the shorter lines, control over how their produce is handled, or simply not having to interact with another human (weather for personal or health reasons). Then there are those who consider it rude for retailers to expect them to provide free ‘scan and pack’ labor, enjoy human interaction, have kids who make self-service impractical, or who have disabilities that make self-service a challenge. Both have strong opinions. Personally I believe grocery retailers should provide both to accommodate customer preferences.

The answer to the first question is, “NO!!!” Like others here I believe self-checkouts would be off brand for Trader Joe’s. The interaction withe the cashier is part of the whole experience and the commitment to people over squeezing another point of margin is at the heart of the TJ’s brand promise. Now, on to Question II. This weekend I visited my local Kroger to buy a couple of fill-in items. Unfortunately, ice cream was one of them. All but one of the service lines were closed and there was about a 12 minute wait of the shortest self-checkout line. I checked out my six items (including the rapidly thawing ice cream), paid, and a “please unpack your order” icon appeared on the screen. There was also no receipt. I hit the attendant button, waited, waited some more, and hit it again. The cashier came over and said, “What’s your problem?” I explained about the weird icon (by this time the screen had reset itself). “The machine don’t have that message sir,” she said. Why, I asked did she think i was standing there with my quickly liquifying ice cream? “I don’t know why you do what you do, but you are tying up the machine,” she responded. But, I protested, I was just trying to do what the machine indicated I should do so I could get my receipt. “The receipt come out here,” she said, pointing to the slot where in fact, ten minutes before, I had, indeed, expected said receipt to appear. I know I said holding up my loyalty card as proof that I was an experienced Kroger shopper. “Well, then you should have gotten your receipt. Have a nice day,” she said as she walked away. Next time I’ll go to Trader Joe’s.

Think about the two major reasons to eschew human-run checkout: length of time & avoidance of human interaction. What does that say about checkouts with human staffing? Think about stores you have visited with most non-checkout lines closed. Plus, many stores no longer bag. Instead, the products are scanned & the customer is left to bagging the order. Trader Joe’s has addressed these & other shopper interactions & has developed a positive point of differentiation in the process. Why change?

I do not believe any survey results saying the “majority” of shoppers prefer self-checkout to cashiers. First, I would consider who conducted the survey. The maker of shelf-checkout terminals? A chain that has invested heavily in self-checkout? I don’t mean to be cynical, but let’s be realistic. Self-checkout is OK for an order of six items or less. But is it good for $200 worth of groceries? Nope. Grocers that have invested in outstanding customer service do not install self-checkout terminals.

John,

I resisted the temptation to make the same point. I’d love to see that research and put it under a microscope. By all means, be [and stay] cynical.

I don’t find the explanations offered up at the meeting very convincing, and honestly I don’t understand the reluctance. That having been said, I don’t think the lack is much of an issue: TJ’s has sort of a cult following, and my experience has been it has small basket-loads and short wait times (on reflection, perhaps these may also explain why there isn’t much of a sense of urgency).

Nope. Not part of the Trader Joe’s experience. Plus, as I’ve said before, the same people that may indicate they like self-checkout in one environment, maybe buying a few items at a c-store, most likely wouldn’t want to have to run a cart full of items at self-checkout at the grocery store. Where retailers are bringing them back, it may very well be more of a labor need than a desire to truly meet shopper needs.

Trader Joe’s has fostered a unique loyalty for its curated private label product selection and friendly, Hawaiian-shirt donning staff. As a result, it’s built a reputation for a more unique, local store feeling experience.

This positions Trader Joe’s in a unique position within the grocery space. Although more customers are looking for a self-checkout driven experience, as the article above notes, a lack of self-checkout for Trader Joe’s won’t likely diminish their success. In this case, the perceived convenience of self-checkout would diminish the many other aspects of shopping experience customers associate with the brand and have come to enjoy. Not to mention, this decision on Trader Joe’s part is one rooted in their company values and that’s part of why their customer base aligns with it as well.

In my opinion, merchants should begin by offering both manned and self-checkout options in their stores to assess the scope of each initiative and let customers choose the method that best suits their needs. As ultimately, it all comes down to customer convenience, and why merchants want to install self-checkouts at their stores.

Additionally, customers typically want to scan, pay, and go when purchasing small items, so retailers must invest in top-of-the-line technology when installing self-checkouts in their stores. Any delay in completing the transaction, even with self-checkouts, simply defeats the purpose and leads to a negative customer experience.

It is very rare to get a bad cashier at Trader Joe’s. Almost all of them are extremely pleasant and interacting with them is part of the positive experience of visiting the store. They are also highly efficient at scanning and packing, which means they shift people through the registers quickly. Self-checkout would disrupt all this, so it is not surprising that Trader Joe’s has no plans to introduce it. On top of this, the smaller size of most of Trader Joe’s stores would make self-checkout more challenging than in much larger supermarkets. Of course, just like shunning online, this decision is made easier by the fact Trader Joe’s is a fantastic retailer that secures loyalty off the strength of its proposition.

I 100% Agree – I shop at Trader Joe’s all over the country. They’re my go-to store when I’m on the road for a few days and want to have food in my hotel. It’s remarkable just how consistent and pleasant my experiences are, no matter where I shop.

The reason would be that some customers actually do like self checkout, especially if all they have in the cart is center aisle packaged goods. I would have thought TJ would at least be open to testing the process on a regional basis. Or give store manages some level of discretion, based on localizing the experience and with full consideration to how the staff feels. It’s odd that they are slamming the door on the idea.

Pleasant interactions with employees, from the time you enter the store to when your bags are packed, and you’re on your way to your car, a big part of the Trader Joe’s brand. Self-checkout would torpedo that experience.

Trader Joe’s would be going totally off-brand if they added self-checkout. I also think these studies are misleading. Millennials want experiences and thrive on personal interaction. (See also board games.) Besides, TJ’s has some of the most personable folks at checkout you’ll find anywhere, and for a reason. It’s part of their culture and brand. I don’t think millennials are heading for the self-checkout area to be antisocial, they’re going there to get out of that cookie cutter store as quickly as possible.

I don’t believe that not adding self-checkout will put Trader Joe’s at a competitive disadvantage. Again, Trader Joe’s has a people-centric strategy, and this vow just illustrates the point. By the way, most of these big chains that have added self-checkout are missing the mark in some way—either through the people, process, or technology part—and should rethink everything sooner than later.

Agree 100%. Based on research I have been part of in the past, customers want self-checkouts to alleviate long lines more than any other reason. The problem with self-checkouts is that they almost always seem to have a problem, so they don’t speed the process along at the end of the day anyway. Customers love shopping at Trader Joe’s and I believe that the bright, sunny atmosphere and human-centric experience are key components in that equation.

I believe that we have the wrong perspective. The competitive advantage is not the self-checkout option itself. I’m an avid proponent of self-checkout lines because of the convenience they afford me; I don’t like waiting in lines. My Trader Joe’s is always busy and registers seem to open with incredible speed and ease when lines show even the slightest hint of building. Additionally, the cashiers are friendly but incredibly quick and efficient. To me, the service along with great product and prices is the competitive advantage and one that builds “profitable” loyalty for Trader Joe’s. And it’s possible that the overall competitive advantage that Trader Joe’s has meticulously built offsets any cost advantage that self-checkout lines may posses “on paper.” What should be expected of grocers is customer centric service which I believe can be delivered with or without self-checkout lines. In fact, I would argue that in some cases, self-checkout lines save grocers with bad customer service from themselves.

I think they call that retailer wishful thinking. And (I know I’ve said this once or twice), elimination of pain (waiting in too long lines replaced by SELF service) does not make for a good customer experience and it sure as heck doesn’t generate loyalty.

It likely won’t go away, but Trader Joe’s is a lot more fun.

The cashier experience at Trader Joe’s is uniformly terrific. Where they could use self checkout is to encourage people to shop for smaller basket sizes. The wait during prime shopping hours for some purchasing a couple of items can be daunting (I shop there for weekly needs never random purchases). So yes, they should add a couple per store and police it appropriately.

Self checkouts have their place, but self checkouts would be off brand at Trader Joe’s.

I have never heard a cashier or a bagger complain about their job or count the minutes until they can clock out at Trader Joe’s like they do at other retailers. Check out here is a pleasant and efficient experience, and it’s because of the crew members. This is the kind of success you don’t mess with.

Guessing T.J’s would have to take out 2 full service lanes to get maybe 4 self check stands into play. Not an earth shattering addition, and I bet the through put of 2 of the very personable cashiers removed would exceed the throughput of 4 self serve stands in any scenario. Other Grocers go self checkout to solve staff shortages, long full service ques and reduce expenses. None of those criteria apply to T.J’s.

Most people do not want self-checkout despite the push to automate everything. Take the cashiers out of Trader Joes’ and you remove their soul. Of course, they aren’t doing it.

The heart of the Trader Joe’s experience is friendly, efficient humans at checkout. They will NEVER embrace self-checkout.

Trader Joe’s cashiers and people are some of the best of the best in the industry. Engaging, interesting, helpful, and pleasant are some of their consistent traits that will fade into the ether if Trader Joe’s moves to self-checkout. Some of my best grocery memories are the quick conversations about meal recipes, new items, weekend plans, and even cocktail recipes. Retaining this human approach to retailing is key for Trader Joe’s continued success.

Self checkout would require a lot of modification to TJs front end, which is already a bottleneck for shoppers leaving the store. They’d be better off rethinking the store exit path.

With quick and efficient cashiers self checkout would not really speed up the overall process.

Self-checkout inspires a lot of debate. There are those that love the shorter lines, control over how their produce is handled, or simply not having to interact with another human (weather for personal or health reasons). Then there are those who consider it rude for retailers to expect them to provide free ‘scan and pack’ labor, enjoy human interaction, have kids who make self-service impractical, or who have disabilities that make self-service a challenge. Both have strong opinions. Personally I believe grocery retailers should provide both to accommodate customer preferences.

The answer to the first question is, “NO!!!” Like others here I believe self-checkouts would be off brand for Trader Joe’s. The interaction withe the cashier is part of the whole experience and the commitment to people over squeezing another point of margin is at the heart of the TJ’s brand promise. Now, on to Question II. This weekend I visited my local Kroger to buy a couple of fill-in items. Unfortunately, ice cream was one of them. All but one of the service lines were closed and there was about a 12 minute wait of the shortest self-checkout line. I checked out my six items (including the rapidly thawing ice cream), paid, and a “please unpack your order” icon appeared on the screen. There was also no receipt. I hit the attendant button, waited, waited some more, and hit it again. The cashier came over and said, “What’s your problem?” I explained about the weird icon (by this time the screen had reset itself). “The machine don’t have that message sir,” she said. Why, I asked did she think i was standing there with my quickly liquifying ice cream? “I don’t know why you do what you do, but you are tying up the machine,” she responded. But, I protested, I was just trying to do what the machine indicated I should do so I could get my receipt. “The receipt come out here,” she said, pointing to the slot where in fact, ten minutes before, I had, indeed, expected said receipt to appear. I know I said holding up my loyalty card as proof that I was an experienced Kroger shopper. “Well, then you should have gotten your receipt. Have a nice day,” she said as she walked away. Next time I’ll go to Trader Joe’s.

Think about the two major reasons to eschew human-run checkout: length of time & avoidance of human interaction. What does that say about checkouts with human staffing? Think about stores you have visited with most non-checkout lines closed. Plus, many stores no longer bag. Instead, the products are scanned & the customer is left to bagging the order. Trader Joe’s has addressed these & other shopper interactions & has developed a positive point of differentiation in the process. Why change?

I do not believe any survey results saying the “majority” of shoppers prefer self-checkout to cashiers. First, I would consider who conducted the survey. The maker of shelf-checkout terminals? A chain that has invested heavily in self-checkout? I don’t mean to be cynical, but let’s be realistic. Self-checkout is OK for an order of six items or less. But is it good for $200 worth of groceries? Nope. Grocers that have invested in outstanding customer service do not install self-checkout terminals.

John,

I resisted the temptation to make the same point. I’d love to see that research and put it under a microscope. By all means, be [and stay] cynical.

I don’t find the explanations offered up at the meeting very convincing, and honestly I don’t understand the reluctance. That having been said, I don’t think the lack is much of an issue: TJ’s has sort of a cult following, and my experience has been it has small basket-loads and short wait times (on reflection, perhaps these may also explain why there isn’t much of a sense of urgency).

Nope. Not part of the Trader Joe’s experience. Plus, as I’ve said before, the same people that may indicate they like self-checkout in one environment, maybe buying a few items at a c-store, most likely wouldn’t want to have to run a cart full of items at self-checkout at the grocery store. Where retailers are bringing them back, it may very well be more of a labor need than a desire to truly meet shopper needs.

Trader Joe’s has fostered a unique loyalty for its curated private label product selection and friendly, Hawaiian-shirt donning staff. As a result, it’s built a reputation for a more unique, local store feeling experience.

This positions Trader Joe’s in a unique position within the grocery space. Although more customers are looking for a self-checkout driven experience, as the article above notes, a lack of self-checkout for Trader Joe’s won’t likely diminish their success. In this case, the perceived convenience of self-checkout would diminish the many other aspects of shopping experience customers associate with the brand and have come to enjoy. Not to mention, this decision on Trader Joe’s part is one rooted in their company values and that’s part of why their customer base aligns with it as well.

In my opinion, merchants should begin by offering both manned and self-checkout options in their stores to assess the scope of each initiative and let customers choose the method that best suits their needs. As ultimately, it all comes down to customer convenience, and why merchants want to install self-checkouts at their stores.

Additionally, customers typically want to scan, pay, and go when purchasing small items, so retailers must invest in top-of-the-line technology when installing self-checkouts in their stores. Any delay in completing the transaction, even with self-checkouts, simply defeats the purpose and leads to a negative customer experience.