Self Checkout: Latest Retailer Insights on The Barcode Does Not Scan Problem

Our 2025 online discussion with global retailers highlighted the key challenges, strategies, and solutions related to items that are "not on file" or fail to scan at self-checkouts. Across various organisations, the issue primarily affects fresh produce, seasonal items, and vendor-supplied products with poor barcode placement or missing data. Retailers that constantly refresh their assortment, such as discounters, are disproportionally impacted by this problem.

The retailers responses ranged from process automation to employee training and governance enhancements.

1. The Scale and Impact of the Problem

• Retailers reported varying frequencies of "not on file" incidents, ranging from fewer than five per store per day to over 18 per store per day, with some reaching up to 500,000 incidents per month across enterprise networks.
• While some retailers saw this as a minor inconvenience, others considered it a significant customer experience issue, leading to delays at checkout, incorrect pricing, lost sales and opportunity for a non scan incident / theft.
• Produce items, especially those with multiple barcode variations from different suppliers, emerged as the most common offenders. Seasonal items like Cadbury Creme Eggs also frequently failed to scan due to barcode placement on foil wrappers.

2. Tracking and Monitoring

• Some retailers shared that they have real-time tracking systems that identify, correct, and update missing items in a central database within 15-20 minutes.
• Other retailers, relied on manual reporting from store associates to flag scanning issues, while another integrates computer vision for inventory verification to mitigate this issue. Technology such as digimarc, that carries the barcode as a digital watermark has not been widely adopted amongst this cohort of retailers.
• Several retailers admitted to lacking robust data tracking on "not on file" items, making it difficult to quantify the issue’s financial impact accurately.

3. Process Improvements and Automation

• Automated item file updates: A significant number of the retailers in the meeting have implemented automated corrections where missing items are immediately flagged, categorized, and added to the system.
• Self-service lookup menus: To address some of the recurring barcode scan issues, some retailers had introduced quick-sell menus at self-checkout, allowing customers to select commonly missing items manually.
• Governance and supplier collaboration: Several retailers highlighted the importance of working closely with suppliers to ensure barcode accuracy, particularly for private-label goods.

4. Employee and Customer Behaviour

• Retailers have found that employee behaviour was a key contributor to the issue. In response, they removed "not on file" buttons, forcing staff to escalate issues and improve item file governance.
• Cashier training and interventions: At staffed checkouts, employees often manually key in prices or use generic department codes, which can distort inventory records and at the same time, reduce visibility to the real problem.
• Customer experience at self-checkout: Some retailers batch all "not on file" items for review at the end of the transaction, but this can lead to frustration and potential losses if customers forget or intentionally avoid flagging the issue.

5. Technology and Future Solutions

• Computer vision and AI: Retailers are investing in camera-based item recognition to minimize reliance on barcodes.
• RFID and alternative scanning technologies: Some retailers are exploring RFID or smartphone-based scanning to reduce dependence on barcodes.
• Enhanced exception reporting: Several retailers plan to integrate AI-driven analytics to detect and prevent scanning issues before they occur.

Conclusions

Retailers recognise that while "not on file" issues may seem minor in isolation, they have a compounding effect on inventory accuracy, shrinkage, and customer satisfaction.

An increasing number of retailers in this cohort are looking to automation, supplier collaboration, and employee accountability as solutions, with some retailers eliminating manual workarounds altogether.

Future advancements in computer vision, AI, and RFID are expected to further reduce reliance on traditional barcode scanning, improving efficiency and accuracy at self-checkouts.