Rochester, NY-based Wegmans Food Markets Inc. BB #:104173 says it is discontinuing its self-scanning checkout-free program due to excessive shoplifting.
The SCAN app was introduced in 2020, and was reportedly popular, but in an email to customers Wegmans said it cannot continue to operate in its “current state.”
“SCAN users have told us they love the app and the convenience it offers. We love it too and have tried many adjustments to keep it. Unfortunately, the losses we are experiencing from this program prevent us from continuing to make it available in its current state.”
The Buffalo News says competitor Tops Friendly Market plans to continue using its checkout-free technology at this time.
According to research by the ECR Retail Loss, increased use of Self-Checkouts results in higher shrink, more than 33 percent higher, and hand-held or mobile scanning losses are significantly higher.
Wegmans says it is discontinuing the technology, but has not scrapped digital solutions entirely.
“We’ve made the decision to turn off the app until we can make improvements that will meet the needs of our customers and business. We’ve learned a lot, and we will continue to introduce new digital solutions to streamline the shopping experience for the future.”