17 July 2023 , 17:26
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Walmart's CEO says that the company is looking to invest in new technology to prevent theft at the self-checkout counter, blaming a rise in thieving for a string of store closures - even though the company posted $149.863B in profits in 2023, a 4.48 per cent increase from the year before.
As individuals take advantage of self-checkout counters to avoid paying for products at a time when the unemployment rates and inflation rates are high, Walmart's leadership is blaming the theft for a string of closed stores across Canada. Walmart's presidents and CEOs are also known for making incredibly high salaries.
Walmart is the largest private employer in the US, is threatening to close stores if thieving doesn't stop, despite posting large profits with a significant increase over the last year (SOPA Images/LightRocket via Getty Images)Gonzalo Gebara, president of Walmart Canada, says the chain discount store, "with more than two million employees worldwide," is suffering from a "lack of profits, theft and security concerns." Gebara's net worth isn't posted online, but his US counterpart makes about $24 million per year.
“Security, in general, is something we pay very close attention to,” Gebara told CTV News. "We're working with all of our resources to make sure that we just improve the general conditions of safety."
Safety, apparently to Gebara, is preventing individuals from petty theft at Walmart. He insists that Walmart is working with RCC (Retail Council of Canada) and other technological companies to create a solution.
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Walmart CEO in the US, Doug McMillon, also discussed how large a problem stealing was in the stores last December, while he pulls in a salary that's 933 times what any Walmart employee makes. “Theft is an issue. It’s higher than what it has historically been,” he told CNBC.
Jim Cormier, the Atlantic director of the RCC added that shoplifting is “not a victimless crime. “This is something that has real consequences. Retail workers that have to deal with brazen thefts going on within stores." Although they are posting profits that are increasing, the company insists it isn't enough and is closing stores in the US and Canada anyway, costing people jobs and cheap places to shop, because the profit margins aren't 'high enough' for the board.
Walmart sells extremely discounted products that they make a huge profit on, and now the retail chain is complaining that 'thefts are at an all-time high' while individuals across the US struggle with inflation & joblessness (Getty Images)Walmart isn't the only retailer to complain about theft. In the US, pharmacies like Walgreens and Duane Reade have been locking up everything on the shelves behind plastic that requires an employee to come and get the item, stating that shoplifting has risen. Among the items that are being kept away from the public are formula for infants, toothpaste, deodorants, and other household items.
Stores like these are known to pressure employees into feeling responsible for stopping theft, despite the fact that Walmart salaries are often just minimum wage. One Walmart employee went viral on TikTok after posting a video showing off how the major retailer does prevent theft at the self-checkout counter. She warned viewers: "Y'all think we don't see y'all stealing at self-checkout?" Then showed off Walmart's anti-theft gadget that workers use at the self-checkout when they suspect people of stealing.
Employees are frequently threatened with store closure and job loss if thefts continue. One Walgreens executive went on-record last year to explain that it's likely that 'theft threats' were overblown and that stores ended up spending too much on security measures, often causing their own downfall.