Walmart Facing Retail Theft Challenges, Implementing Major Changes
Recent developments at Walmart and its subsidiary Sam’s Club highlight the growing impact of retail theft, leading the companies to implement significant changes that are proving controversial with customers. In our coverage, we’ve explored measures ranging from increased security for certain items to shifts away from traditional checkout methods.
One striking change we noted is Walmart’s decision in some locations to lock up steaks. This measure, which we understand has been in place since at least 2022 but is perhaps becoming more visible, involves placing expensive meat cuts like Angus ribeye steaks in sealed, locked cases. While some might find this extreme, our sources indicate this is happening in “some locations,” which we understand to mean primarily inner-city areas, although the question of demographics around these stores has also been raised.
Beyond specific items, we’ve learned that Walmart is allegedly opting out of self-checkout in some locations and requiring all customers to check out with employees. For many customers, self-checkout has been a convenience, especially for quick trips with few items. Our perspective is that self-checkout was perhaps never sustainable in the long run, partly due to the potential for blatant theft. We have seen instances of people clearly stealing items using these machines.
The issue of theft extends beyond physical items to digital security at checkout. Walmart has reportedly added striking red labels on self-checkout machines. These labels are designed to alert both employees and customers to potential tampering at payment terminals. Customers and social media users have speculated these labels are specifically intended to prevent card skimmers and other tampering devices that steal shoppers’ information. We understand these labels help workers inspect machines; if a label is removed, it could indicate the pin pad needs to be checked for tampering. The discovery of a span of skimming devices in self-checkout machines across the U.S. has prompted these measures. Some speculation exists that the placement of these labels could be improved, perhaps covering the pin key pad directly.
Looking ahead, we’ve seen signs that Sam’s Club, the membership-only warehouse chain owned by Walmart, is piloting a major shift in how customers pay. Reports indicate Sam’s Club plans to phase out all traditional and self-checkout lanes across its nearly 600 U.S. and Puerto Rico stores. Customers will instead be required to use AI-powered scan-and-go features via the chain’s mobile app. This system allows shoppers to bypass the cashier line and leave the store with minimal direct employee contact. While framed as a move to keep up with the times and ease the shopping experience, we see this primarily as an anti-theft measure. It could eventually require customers to use an app just to enter the store.
The discussion around these anti-theft measures often leads to questions of who is to blame. Some sources suggest the issue is linked to store demographics or state laws that don’t lock up offenders. However, based on our own experience working at Walmart in the past, we noted a policy of never prosecuting shoplifters, which we believe contributed significantly to theft. Regardless of the specific cause, the impact is tangible: locking up essential items like toothbrushes, toothpaste, and deodorant. We believe that constantly locking everything up inconveniences paying customers and doesn’t address the fundamental societal problem driving theft.
Ultimately, while there have been mentions of potential boycotts related to unrelated issues like DEI, we haven’t seen evidence that these factors are significantly impacting Walmart’s overall performance in the way that might force a change in strategy. When people are living paycheck to paycheck, price often dictates where they shop. The real problem, as we see it, is a societal one that needs to be addressed directly, rather than simply locking up more goods in stores. We hope our coverage provides important context on the challenges retailers face and the controversial steps they are taking in response.
