Walmart Is Getting Rid Of Self-Checkouts At Two Locations Because Of Theft

 Walmart has decided to get rid of self-checkout machines in two locations due to a rise in crime at those lanes not manned by staffed personnel.

Two stores — one in Cleveland, Ohio, and another at Shrewsbury, Missouri — said they would be replacing the self-checkout kiosks with staff to “give our associates the chance to provide more personalized and efficient service,” the Daily Mail reported.

“We’ve decided to remove self-checkout lanes and replace them with staffed lanes at select locations,” a spokesperson for Walmart said.

“The decision was based on several factors, including feedback from associates and customers, shopping patterns and business needs in the area,” the person added.

The large retailer would not say if the two stores would be the only locations where the self-checkout machines would be removed, only that it did not “currently” have any announcements.

Neil Saunders, managing director of GlobalData, said, “Most of the rollback of self-checkouts is due to retailer concerns over theft.”

“Theft rates at self-checkouts are reasonably high both because of deliberate actions and accidental mistakes,” he added. “Forcing more customers to used manned checkouts resolves a lot of these issues and saves retailers money.”

 

It also turns out that the unmanned kiosks aren’t super popular with shoppers. A recent study from Drexel University in Pennsylvania found that the idea of self-checkout actually left shoppers irritated because they were left to having to do it all themselves, the outlet noted.

Walmart isn’t the only retailer making that decision. Dollar General has opted to take the lanes away altogether from 300 of its stores due to high levels of shoplifting or mis-scanned items, the outlet noted.

“We believe these actions have the potential to have a material and positive impact on shrink,” Dollar General CEO Todd Vasos said.

Target also revealed that it was limiting self-checkout kiosk customers to 10 items to improve shoppers’ experience.

The decision follows Walmart’s recent announcement about the closure of four stores in Chicago, Illinois, due to poor performance at the locations, a move that also occurs as the city sees worsening crime rates.

The decision to shutter the four locations comes one month after Walmart closed the firm’s remaining two stores in Portland, Oregon. Walmart CEO Doug McMillon said in an interview with CNBC last year that the company has been impacted by an uptick in shoplifting and warned that “stores will close” if the phenomenon is not resolved by city officials.