Workers at some Walmart Inc. (NYSE: WMT | WMT Price Prediction) 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.
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