If the tide of theft isn't stopped, Walmart could close.
Self-checkout is blamed for theft by customers and employees.
There will be less eyes on a transaction because of automation.
Walmart's CEO has warned that the retailer may have to close stores due to theft, but many of the company's customers and employees blame self-checkout for the problem.
Walmart CEO and President Doug McMillon told CNBC earlier this month that there will be consequences if theft isn't corrected over time. More than 100 Walmart customers and former and current employees reached out to an Insider reporter imploring the retailer to rely less on self-checkout
Walmart needs to hire more cashiers and stop using self-checkout, said a customer. They are losing a lot because of that.
Walmart uses cashiers at stores across the country. The retail giant in Arkansas relies on automation to improve customer experience and reduce labor cost.
Walmart put out a press release in June 2020 extolling the virtues of its "manned checkout experience," where there is a round area for self-check out and Walmart employees monitoring and assisting with the process.
Walmart declined to answer questions on its ratio of self-checkout kiosks to traditional checkout lanes, staffed by cashiers, across the country and how much it has lost in theft this year. According to a report in 2015, the world's largest retailer was losing about 1% of its US revenue to theft.
"While we don't discuss details related to illegal activity in our stores, we're constantly exploring ways to protect merchandise, keep prices low and provide a safe environment for the millions of customers we serve weekly," a Walmart spokesman told Insider.
"Eliminating self checkouts is the best way to protect against theft and make customers happy," said Polly Kearns, a Walmart shopper.
She said to get rid of self checkouts. I don't use them because I don't want to lose a job to someone else.
A Walmart employee in Washington told Insider that her store went down to six staff-operated register a few months back, with the rest of the machines being self-check out.
The employee said that theft is bad at his store. Corporate might see how to fix the problem if they visit the store and speak with employees that deal with theft. Stores are being converted to more self checkouts. Most theft takes place at self checkout.
Security experts agree that self-checkout makes it harder to stop theft. "It's definitely very valid that self-checkout, which most big-box retailers have implemented in some form, has led to more thefts," Matt Kelley told Insider.
Kelley previously served as a senior manager of asset protection at Home Depot. There will be less eyes on a transaction because of that. There will be more opportunities for dishonest people to be dishonest.
If you have a tip about Walmart, please let us know. Ben can be reached by email at btobin@insider.com or by text at 498-9171.
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