OXXO Begins To Experiment With Self-Checkout in Mérida Locations

OXXO’s checkout lines are notoriously slow, with internet memes based on the idea that “the second cash register does not really exist” or “the networking being down” becoming ubiquitous on social media. 

The convenience retail chain is now taking a new approach in selected locations around the country, OXXO self-checkout. 

There have been no major press conferences or official statements from OXXO, but these self-checkouts have been appearing gradually, seemingly out of nowhere. 

Self-checkout machines are, of course, nothing new in Mexico, but the prospect of them becoming ubiquitous is a potential threat to OXXO’s roughly 150,000 employees nationwide. 

The setup of these self-checkout machines is sound from a business perspective, as it allows customers who don’t want to wait in line to pay for their items themselves while also reducing labor costs. But the reality is not as straightforward. 

Self-Check-Out Expectations Vs. Reality

Recent studies suggest self-checkout machines may not be the corporate cost-cutting panacea they were once believed to be.

The financial stakes for retailers are enormous. Companies have poured millions, if not billions, of dollars into developing and installing these systems. A single setup with four kiosks can cost hundreds of thousands of dollars. 

Despite this significant investment, a notable trend is emerging: many major retailers, including Target in the U.S. and the United Kingdom, have begun limiting the number of items a customer can purchase at self-checkout lanes. Walmart has removed these kiosks from some stores to reduce theft. 

Theft, often called “shrink” in the retail industry, is a massive problem with self-service systems. Some data indicates that stores using self-checkout technology experience loss rates more than double the industry average. When no human cashier is present, some customers are more likely to skip scanning an item or intentionally misuse the system.

Furthermore, the planned reduction in staff has not materialized. Stores still need employees to assist customers, fix technical problems, and monitor for theft. 

In surveys, a majority prefer it when given the choice, valuing the sense of control and speed. Yet those same surveys reveal a high level of frustration, with most people reporting a kiosk failure, whether it is an “unexpected item in the bagging area” or a barcode that will not scan.

Experts who study consumer behavior suggest that the technology itself is neither inherently good nor bad. Its success or failure depends entirely on the value it provides. If customers and stores no longer see a benefit, they will either abandon it or use it less. 

Ultimately, the experiment with self-checkout has taught the retail industry a valuable, if expensive, lesson. It demonstrated that you cannot simply remove human interaction from the shopping experience and expect everything to run more smoothly and cheaply. 

Technology can assist, but it cannot reliably replace the flexibility, problem-solving ability, and theft-deterring presence of a person.

What This Means for OXXO and Other Mexican Retailers

OXXO and other large retailers like Walmart Mexico appear to have taken notice of the trend both at home and abroad, which means that a future dominated by self-check-out machines is unlikely.

Even if 10% of customers in Mexico chose self-checkout over conventional cashiers, this would represent significant savings for companies and limit the impact of automation.

There is also the fact that, as of now, self-checkouts at OXXO only appear to accept card payments. This is clearly a significant problem in Mexico, where cash remains king for everyday transactions. 

Currently, there are between 20,000 and 22,000 OXXOs in Mexico. This number from the country’s largest convenience store chain, owned by the Coca-Cola bottler FEMSA, continues to grow as new branches open almost daily. Internationally, including Latin America, the total number of OXXO’s locations exceeds 24,000.