COSTCO has implemented a crackdown on self-checkout to mitigate theft rates at store locations around the United States, but shoppers aren’t thrilled about the delays it’s seemingly causing.
The warehouse retailer has been able to implement several security measures to prevent inventory shrink.
Inventory shrink occurs when the amount of product in stock is less than what’s listed on the list of recorded inventory, per Corporate Finance Institute.
Typically, those losses can be attributed to errors in recording, damaged items, or theft.
Most recently, the company decided to add more employees near the self-checkout areas as a way to monitor purchases for accuracy and prevent potential shoplifting, The Street reported.
Costco CFO Richard Galanti explained in a fourth-quarter earnings call for the brand that self-checkout was the only point where inventory shrink increased slightly.
Read More on Costco
“We are asked often recently about our inventory shrinkage results and whether it has dramatically increased in the past year versus historical shrink results. The answer is no,” Galanti noted.
“In the past several years, our inventory shrink has increased by a couple of basis points, in part, we believe, due to the rollout of self-checkout.”
The CFO continued: “Over the past year, it has increased by less than 1 basis point more.”
Due to the data, a decision was then made by Costco executives to increase employee presence at self-checkout, per CBS News.
Most read in The US Sun
Despite Costco’s membership system, which would seemingly create a tight-knit process of who is allowed in and out of the store, staff found that many shoppers would get inside using membership cards that weren’t their own.
“Costco said it’s adding more staff in self-checkout areas after it found that non-members were sneaking in to use membership cards that didn’t belong to them at self-checkout,” CBS noted.
In June 2023, the warehouse retailer announced it would take its security processes at self-checkout a step further, much to the dismay of some customers.
The company explained that IDs would be matched to membership cards at self-checkout, causing a slight delay in the process that infuriated some.
“We don’t feel it’s right that nonmembers receive the same benefits and pricing as our members,” a Costco representative told The U.S. Sun in a statement.
“Costco is able to keep our prices as low as possible because our membership fees help offset our operational expenses, making our membership fee and structure important to us.”
Customers took to X, formerly Twitter, to issue their grievances, with some even threatening to boycott the store altogether.
“Well is not like their prices are low! Maybe it’s time to cancel my subscription if my sibling can’t use it!!!” one Costco member exclaimed in a post.
“Yeah let’s do that. Let’s all cancel our subscriptions. We don’t feel it’s right.”
Another argued that the processes caused line problems almost immediately at their location.
“There was high anxiety in the @Costco #costco line last nite, as a staffer carded everyone in the self-checkout lane, (kindly) demanding to see your picture on the back,” they posted.
Galanti told The Wall Street Journal at the time that the issue was blown out of proportion, and the self-checkout theft has been occurring at the retailer for some time, but with mostly a smaller portion of shoppers.
“It’s a really small percent of members who are doing it,” Galanti explained.
“But when you’re dealing with millions of transactions, even a very small percentage is something you would want to correct.”
As The U.S. Sun previously reported, customers at Costco have recently been more concerned with receipt checks rather than the increased employee presence or ID matching.
Former employee Becca Hurtado (@suezyque) claimed in a recent clip on TikTok that employees are checking receipts to see if a certain code matches with one listed for the day’s purchases.
She said Costco employees are really looking to ensure that customers are charged appropriately for the items they buy, preventing overcharges and undercharges.
They then have to “deface” the receipt with a highlighter to prevent someone from trying to use the receipt in the future for potential theft.
Unlike non-membership-based stores like Walmart and Target, Costco employees can require their members to stop for receipt checks, according to lawyer Alex Colangelo.
When shoppers sign up for memberships at Costco, they agree to the terms and conditions, per what Colangelo told The Toronto Star.
Read More on The US Sun
Those terms and conditions include displaying receipts and proof of purchase at the checkout.
For more on Costco, check out The U.S. Sun’s coverage of an employee’s reveal of the “death star” meaning in-store and how shoppers can get lower prices.
https://www.the-sun.com/news/9648046/costco-self-checkout-crack-down-membership-theft/
