New study reveals how self-service is reshaping retail in Australia

A recent study titled "The Evolution of Self-Checkout in Australia: Insights from Retailers and Consumers" from IDC and sponsored by Diebold Nixdorf, reveals how self-service is reshaping customer experience in retail stores and why retailers' concepts are moving beyond speed and convenience to drive customer experience, efficiency and revenue growth.
 
These insights are largely based on two IDC online surveys conducted across Australia in early 2025: one with 1,000 consumers and another with more than 180 retailers from various segments, including Food and Beverage, Grocery, Fashion and Apparel, and Fuel and Convenience.
 
The study states that more than two-thirds of Australian consumers prefer self-checkout, mainly when they are shopping alone, in a hurry, or want to avoid long queues. On the other hand, checkout delays, trust concerns and inflexible systems can frustrate Australian shoppers. They expect better in-store experience, including intuitive help when needed, support for diverse payment methods and more choice when shaping their own shopping process.
 
Stephanie Krishnan, associate vice president at IDC Asia/Pacific, said: "For today's shoppers, speed, privacy and control are non-negotiable. This means that retailers are at a point where they must eliminate delays, build trust and offer flexible, seamless checkout experiences, or risk losing customers at the final step of the journey."
 
The good news is that Australian retailers are on the right track. Self-service checkout is central to their strategy, and despite the high satisfaction with self-service technology (95%), they are looking for ways to further innovate, prioritizing AI-driven engagement, faster payments and enhanced security in their next phase of investment. AI technology, in particular, is a game changer. Modern Smart Vision solutions are designed to help retailers to combat shrink, reduce common friction points at the checkout – especially when buying age-restricted items or non-barcoded products like fresh produce – and improve in-store safety by using cameras mounted on top of checkout devices and the existing video surveillance network to analyze behavior and activities in real time.
 
Additionally, innovative checkout concepts like hybrid models allow an "all lanes open, all of the time" approach based on flexible checkout systems that can easily switch between self-service and attended modes.
 
Kristie Longhurst, general manager, Retail for Australia and New Zealand at Diebold Nixdorf, said: "We see more retailers investing in AI technology and hybrid checkout models. This has been resonating well with consumers and also helps combat additional key challenges retailers are currently facing, like improving in-store process efficiency and increasing workplace attractiveness, as it is becoming harder and harder to attract and retain store staff. AI-powered checkout solutions that are reliable and easy to service combined with hybrid checkout lane concepts enable them to focus on consumer service and more value-added tasks."