Not long ago, Doug McMillon, the CEO and Chief of Walmart, raised concerns about a significant number of Walmart branches facing potential shutdowns due to financial losses stemming from theft. In an interview with CNBC, he highlighted that current theft levels are surpassing historical norms and stressed that corrective measures will be necessary “if that trend persists.”
Since this disclosure, employees and customers alike have observed that one of the primary drivers of theft in stores is the introduction of self-service payment terminals.
“Theft incidents in my store are alarming,” revealed a undisclosed Walmart staff member from Washington in an interview with Business Insider. “If corporate officials were to visit the stores and engage with employees directly responsible for handling theft issues, they would gain insights on how to tackle the problem. The shift to more self-service checkouts with reduced staff has significantly contributed to theft rates.”
“There is a need to recruit cashiers once more and reduce the reliance on self-service checkouts,” voiced a Walmart shopper from Ashland, Kentucky. “The losses incurred due to this switch could be substantial.”
The growing epidemic of retail theft could compel Walmart to shut down business premises and hike prices, cautioned CEO Doug McMillon. pic.twitter.com/QgkEy0AV0x
— New York Post (@nypost) December 7, 2022
Recent reports indicate that Walmart is losing around 1% of its annual revenue, equal to approximately $3 billion, due to theft by both customers and employees. In a statement given to Insider, a Walmart representative didn’t explicitly reference the impact of self-service payment systems but assured that the company was actively seeking a resolution.
“While we refrain from discussing specifics on illegal activities at our outlets, we are continuously exploring effective strategies to safeguard our inventory, maintain competitive pricing, and ensure a secure shopping environment for the millions of weekly customers we cater to,” they responded.
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