[Report] "Next will be me, I guess" Growing Self-Checkout Counters, Cashiers Feel 'Anxiety'

Unmanned Trend in Retailers... Cashiers Face Job Loss Risk
Directly Employed Workers at Three Major Marts Down by 12,801 in 6 Years
Next Year's Minimum Wage Increase Expected to Accelerate 'Labor Cost Reduction'

As the introduction of self-checkout counters increases, cashiers' worries have deepened. Photo by Kim Jeongwan kjw106@

[Asia Economy Reporter Kim Jung-wan] "Recently, they have reduced the number of regular checkout counters and increased the number of self-checkout counters. I thought, 'This is going to be the next step.'

On the morning of the 26th, cashier A, whom I met at a large supermarket in Seoul, sighed. The worry that they might soon lose their job grew as the operation of self-checkout counters increased at their workplace. He lamented, "Even someone who has worked for over 10 years can suddenly be out on the street," adding, "It doesn't feel like someone else's problem."

The wave of automation is intensifying in offline retail stores, including large supermarkets. As contactless transactions expanded due to COVID-19, the number of self-checkout counters increased and is expected to be further expanded ahead of next year's wage hikes. Cashiers expressed a sense of crisis, saying they could be unemployed at any time due to the continuous increase in self-checkout counters.

Customers visiting the supermarket seemed familiar with the process, scanning barcodes and continuing payment alone at the self-checkout counters. Customers waiting at regular checkout counters, tired of the long lines, often moved to self-checkout counters. E-Mart introduced self-checkout counters nationwide in about 1,000 units across 147 stores since first implementing them in 2018. Lotte Mart first introduced self-checkout counters in 2017, and Homeplus initially introduced them in 2005 for privacy reasons regarding purchased items.

Citizens are using self-checkout counters to make payments at a large supermarket in Seoul. Photo by Kim Jeongwan kjw106@

Unmanned payment machines have been increasingly introduced as contactless transactions became preferred after COVID-19. According to the '2020 Economic Census Results' announced by Statistics Korea on the 28th of last month, the number of businesses adopting unmanned payment machines in three sectors?retail, accommodation, and food & beverage?was 30,000. The increase in single-person households purchasing small quantities also fueled the adoption of unmanned payment machines. A representative from a large supermarket said, "Although some people still find it unfamiliar, single-person household customers who come to buy small amounts at low prices tend to prefer it because it is convenient."

With the introduction of self-checkout counters, cashiers at supermarkets and convenience stores have faced the threat of unemployment. According to research results announced on the 22nd by Professor Kim Young of the Sociology Department at Pusan National University, from 2015 over six years, the number of directly employed workers at the top three large supermarkets decreased by 5,487 at E-Mart, 5,290 at Homeplus, and 2,025 at Lotte Mart, totaling 12,801 nationwide. Professor Kim explained, "Among the three large supermarkets, E-Mart, which has the best sales, was able to reduce its workforce by about 5,000 due to the introduction of digital technologies such as 'self-checkout counters' and 'electronic price tags.'"

The convenience store industry is also rapidly increasing unmanned stores every year. As of the end of last month, the number of unmanned stores among the four major convenience store chains (GS25, CU, 7-Eleven, E-Mart24) was 2,783, about 14 times more than the approximately 200 stores in 2019. GS25 increased its unmanned convenience stores from 140 in 2020 to 723 as of last month and plans to expand by about 250 more this year. CU also increased its unmanned stores from about 90 in 2019 to around 400 in 2022.

Citizens are using the regular checkout counters. Photo by Kim Jeongwan kjw106@

The increasing number of self-checkout counters has deepened the worries of cashiers. Mr. Lee (in his 50s), who has worked as a cashier at a large supermarket for over 15 years, said, "The lines at regular checkout counters are getting longer, and some customers are unfamiliar with self-checkout counters, so one or two people have to run around helping them with all those self-checkout machines," adding, "Having a few self-checkout counters is fine, but if there are too many, it actually becomes harder." He added, "You shouldn't reduce staff by counting one self-checkout counter as equivalent to one person." Relatedly, on the 12th, cashiers at a large supermarket gathered in front of the store to hold a protest against the installation of self-checkout counters.

Meanwhile, with next year's minimum wage confirmed at 9,620 won per hour, a 5.0% increase from this year, there are expectations that the industry's efforts to reduce labor costs will accelerate. In fact, in 2021, when a 5.0% increase was anticipated, the number of unmanned stores such as convenience stores increased faster than in any other year.

This content was produced with the assistance of AI translation services.