Retail

Is Walmart Spying on Shoppers?

Douglas A. McIntyre

Published: December 18, 2024 8:15 am

Workers at some Walmart Inc. (NYSE: WMT) locations have started to wear body cameras. The reason appears to be twofold. The first is to spot hostile customers who pose a threat to workers. The other is to record people who may be stealing. Walmart says the purpose of its cameras is to protect workers from “harassment.”

A recent survey by the National Retail Federation shows that among its membership, “More than one-third (35%) of respondents are researching body-worn cameras for retail employees or LP personnel.” LP stands for “loss protection,” a phrase that means the same as shoplifting.

While Walmart’s body cameras may help catch customers who threaten workers virtually or physically, they have value as a means to combat one of the most significant challenges to retailer earnings. Capital One Shopping estimates that store theft levels will total $132 billion this year.

How big is the theft prevention issue at Walmart and its competition? Theft reduced Target’s profits by $700 million in 2022.

It is unclear whether the bodycams worn by some Walmart employees are to protect them or store merchandise. It may be both.

The Retail Rollercoaster: Winners, Losers, and the Economic Red Flags