Asda Set To Splurge £30 Million On More Staff After Customers Are Fed Up With Self-Service Terminals

Asda, one of the UK's leading supermarket chains, is set to invest more than £30 million in additional staff as a response to growing customer dissatisfaction with self-service checkouts. The retailer's decision comes after noticing a significant dip in sales, attributed in part to frustrations with self-service tills, which many shoppers find inconvenient and impersonal.

The supermarket chain reported a 2.1% decline in like-for-like sales during the first half of 2024. According to Asda's Chief Financial Officer, Michael Gleeson, customers have "reached their limit" with self-scanning options, prompting the company to reassess its approach to customer service. Despite the widespread installation of self-service checkouts in recent years, the retailer has recognised the need for a balance between technology and human interaction.

"We think we have reached a level of self-checkouts and scan-and-go that works best for our customers," Gleeson said. "We have invested additional hours in manned checkouts, and that's been within the existing physical infrastructure of the stores. It's not about adding more checkouts, but rather ensuring more colleagues are available at the tills."

The Rise and Fall of Self-Service Checkouts

The introduction of self-service checkouts began in the late 20th century, with the technology becoming increasingly popular throughout the 1990s and 2000s. Today, there are approximately 80,000 self-service tills in UK supermarkets, up from 53,000 just five years ago. However, despite their initial popularity, there has been growing resistance to their use, with many customers expressing a preference for traditional, manned checkouts.

Independent supermarket chain Booths has already removed self-service tills from all but two of its stores, citing customer dissatisfaction. Other major retailers like Sainsbury's and Tesco have attempted to promote the convenience of self-service options, but these efforts have often been met with mixed reactions. Many shoppers have expressed frustration with common issues such as the "unexpected item in the bagging area" error, which disrupts the checkout process and often requires staff intervention.

Asda's Competitive Landscape

Asda's decision to reallocate resources to manned checkouts is part of a broader strategy to regain market share amid fierce competition. The retailer has seen its market share drop from 13.7% to 12.7% between January and July 2024, as competitors like Aldi and Lidl continue to attract more customers with their low-cost offerings.

To combat this, Asda is not only increasing staff presence at tills but also investing £50 million in store renovations and enhancing its Asda Rewards loyalty app, which is now used in more than half of all transactions. The retailer hopes that these initiatives will help improve the overall shopping experience and attract customers back to its stores.

Addressing Shoplifting Concerns

While the increased staffing is primarily aimed at improving customer service, it may also have a secondary benefit in deterring shoplifting. Last year, shoplifting offences in England and Wales reached their highest level in 20 years, with 430,000 incidents recorded by police. Although Asda has not explicitly linked its decision to boost staffing levels with concerns about theft, a stronger staff presence could help reduce the likelihood of such incidents.

With the supermarket industry facing increasing pressure from discount chains and changing consumer preferences, Asda's decision to prioritise customer service could be a crucial factor in maintaining its position in the market. As the retailer continues to adapt to the evolving retail landscape, it will be interesting to see how these changes impact its performance in the coming months.