Nobody likes to be accused of theft. That includes people who are actually thieves, but their feelings are not as important since they are actually stealing.
The problem (and it’s a big one) is that many of the ways retailers fight theft make honest customers feel like criminals. That starts with small things like Walmart. (WMT) – Get a free report and Costco wholesale (COST) – Get a free report Employees check your receipts when you leave your stores.
Related: Costco makes major change to stop theft and keep non-members away
Yes, they do it to everyone, but it’s still not a pleasant feeling for honest people worried they may have missed or incorrectly scanned an item at self-checkout. However, things get uglier when companies use sneaker techniques to reduce theft, specifically at self-checkouts.
In the case of Walmart, the retailer has technology that allows a store employee to close a self-checkout system. The worker is not supposed to tell the customer that he is suspected of theft. Instead, the worker must pretend that it is a technical problem.
That’s a strategy that makes honest people uncomfortable and creates a gray area. Did the person steal a can of soup or just not scan it?
Image source: Walmart
This is how Walmart technology works
Walmart workers at the self-checkout area are issued devices called “TC Devices,” according to a former Walmart employee’s report. tiktok video. These machines allow the worker to discreetly observe what people buy in the self-checkout line.
Never mind that some people use self-checkout because they’re buying embarrassing items they don’t want an employee to see, Walmart is spying on you for theft.
“We can see everything you’re purchasing, how much your total purchase is, and how much each item costs,” the former employee shared.
The TikTok personality, who goes by the name “obeygoddess,” showed off what the TC device’s screen looks like, literally showing a sort of updated receipt for a customer’s purchases.
If something seems out of the ordinary, the worker can press the pause button which freezes the machine. A manager can then review and evaluate the situation.
At best, that’s an inconvenience when the customer isn’t stealing. At worst, it’s a dangerous situation as the suspected shoplifter may become hostile, a situation that Walmart employees and checkout staff are not fully trained for.
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Walmart policies increase tension
If you’re not stealing, self-checkout can still be stressful because it’s easy to make a mistake. People who steal may use anger and indignation as a way to avoid getting caught, since Walmart workers are not allowed to specifically accuse them of theft.
This has caused an increase in hostile situations for chain workers, according to technology-is-effective-but-involves-confronting-customers-2023-10″>Business Insider. Although workers are trained to blame the machine and not the customer for items that don’t scan, having to involve them creates added stress.
“It’s really uncomfortable and becomes a safety issue,” one worker told the website. (The names were redacted in the Business Insider article to protect the group of seven Walmart employees interviewed for the article from retaliation by the chain.)
Workers do not receive training or scripts to reduce tensions, according to the news article.
Walmart doesn’t share specific theft numbers, but CEO Doug McMillon did comment on shrink, an industry term for stolen items, during the company’s meeting. second quarter results call.
“Shrinkage is an important part of the margin,” he said. “The contraction has increased a little bit this year. It increased last year. It’s uneven across the country. It’s not happening in all markets. Some markets are higher than others.”
Rival objective (TGT) – Get a free report has faced similar problems, and CFO Michael Fiddelke spoke about it during the retailer’s conference. third quarter results call.
“The rising cost of inventory reduction represented a 40 basis point headwind to our third quarter gross margin rate. While we are encouraged that this impact was smaller than expected and better than what we faced earlier in the year, the growth continues to be a significant factor. financial obstacles and we are determined to continue making progress in the years to come,” he said.
