Australian retailers are entering a new phase of self-service, one where checkout is no longer judged on speed alone, but on how well it delivers control, trust, flexibility, and commercial value.

A recent Diebold Nixdorf study conducted by IDC 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 1000 consumers and another with more than 180 retailers from various segments, including food and beverage, grocery, fashion and apparel, and petrol and convenience.

Consumers

The study finds that more than two-thirds of surveyed 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 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.

IDC Asia Pacific Associate Vice President Stephanie Krishnan says 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,” she says.

Retailers

Self-service checkout is said to be central to the strategy of retailers, and despite the high satisfaction with self-service technology (95%), they are looking for ways to further innovate, prioritising AI-driven engagement, faster payments and enhanced security in their next phase of investment.

AI technology, in particular, is a game changer, says Diebold Nixdorf.

“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 analyse behaviour and activities in real time,” says the technology company.  

“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 of Retail for Australia and New Zealand at Diebold Nixdorf, says more retailers are 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’s becoming harder and harder to attract and retain store staff,” she says.

“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.”