This month, Doug McMillon, the CEO and President of Walmart, raised concern about a significant risk of several Walmart branches shutting down due to financial losses arising from theft. During an interview with CNBC, he highlighted that the current theft levels exceed historical averages and emphasized the need for corrective actions over time.
In response to this disclosure, both Walmart staff and customers have observed that a key factor influencing theft in the stores is the introduction of self-service checkout stands.
“Theft at my workplace is rampant,” shared an anonymous Walmart employee based in Washington with Business Insider. “If the corporate representatives could visit our store level and engage with actual staff dealing with theft, they would understand how to address the issue. The increasing shift towards self-checkout with fewer staff members is where most of the theft occurs.”
“They should reconsider hiring more cashiers and reducing the number of self-service checkouts,” suggested a Walmart shopper from Ashland, Kentucky. “It seems like they are incurring significant losses due to this approach.”
CEO Doug McMillon cautions about potential store closures and price hikes as a result of escalating retail theft at Walmart. https://t.co/mVB1ZEqxD3 pic.twitter.com/QgkEy0AV0x
— New York Post (@nypost) December 7, 2022
Current reports suggest that Walmart faces an annual loss of approximately 1% of its revenue, which amounts to around $3 billion, due to theft by both customers and employees. While responding to Insider, a Walmart spokesperson did not directly address the impact of self-service checkout systems but assured that they were actively seeking solutions.
“Although we do not comment on specific illegal activities within our stores, we are consistently exploring effective measures to safeguard our merchandise, maintain competitive prices, and ensure a secure shopping environment for the millions of customers we serve weekly,” they remarked.
