Why Grocery Retailers May Eliminate Cashiers:
tend to be younger, over 70% are women, and are disproportionately Black, Latin/Hispanic and immigrant. Most cashiers do not have Bachelor’s degrees and are nearly twice as likely to live in poverty and have Medicaid. And unlike their counterparts in some European countries who have stronger unions and better working conditions, most U.S. cashiers need to stand all day at the cash register. and the median earnings for full-time cashiers was just over $22,100 annually.
Eliminating cashiers is really about rationalizing store labor; those jobs won’t likely be reassigned elsewhere in stores. This major variable expense, when cut, goes right to bottom line improvement. A grocery store typically budgets about 12-15% of their sales for labor, and lower for mass merchants and discounters. Cashier teams can account for 20-25% or more of store labor dollars.
But more likely, the difference will just be redistributed as profits back to institutional shareholders and executives in the form of buybacks, dividends and bonuses. In the race to the bottom that is food retail, there will be pressure on the whole industry to lower labor expenses, regardless of whether holdouts adopt the technology or not.
But on the other hand, working in retail during the pandemic has caused many grocery staff to question their career paths.
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