Costco and Walmart face self-checkout crackdown as new law targets shoplifting surge

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APRIL 3, 2026

With self-checkouts increasingly blamed as a contributing factor for retail theft, a growing number of states are exploring ways to make them easier to monitor.

A crackdown on self-checkout will soon hit major retailers including Walmart, Target and Costco – with limits on how many items shoppers can scan potentially next.

Under the proposal, stores would be allowed to operate no more than eight self-checkout machines at a time.

It would also require stricter staffing rules – with workers overseeing no more than two machines each, and at least one traditional staffed checkout lane open for every two self-checkouts in use.

Supporters of the planned new rules in Connecticut say the move is needed to curb theft and reduce the pressure on employees who are often left monitoring large clusters of machines alone. Shoplifting costs $47.8 billion a year.

The rules would apply to major retailers, including Walmart and Costco, as well as smaller convenience stores and pharmacies.

‘They could be manning almost a dozen checkouts on their own,’ said Ivan Shang of the United Food and Commercial Workers Union Local 919.

But critics argue the bill risks going too far and could slow down shopping for customers.

‘It’s an overreach for sure,’ said state representative Steve Weir. ‘This seems like another punitive regulation on business rather than a real solution.’

State data shows that in 2022 – the most recent year available – retailers in Connecticut lost $895 million to shoplifting, while the state lost $56.8 million in sales tax revenue

Supporters say the measures could help curb theft, but critics warn they may lead to higher prices and longer lines.

‘I think that making this balance between staffed lanes and self-checkout will help create a better environment for the people of Connecticut,’ said State Senator Julie Kushner.

However, Wayne Pesce, who represents grocers as president of the Connecticut Food Association, argued during a public hearing that the bill is ‘ill-advised’ and could disrupt store operations while raising food prices.

The push comes as stores across the country ramp up anti-theft measures following a surge in so-called ‘shrink’ – industry jargon for lost inventory.

In parts of Southern California, local governments have already taken action.

Cities including Long Beach and Costa Mesa have introduced their own restrictions, including limits on how many items customers can scan at self-checkout.

In Costa Mesa, shoppers are capped at 15 items – and barred from using self-checkout for high-value or locked products, such as deodorant and cigarettes.

Store that fail to comply could be reported by shoppers or workers, triggering fines ranging from $100 to $1,000 per day for each violation, depending on severity.

The new rules, which only narrowly passed in January, affect more than 22 retailers in Costa Mesa, including Target and CVS.

A similar proposal is under consideration in New York City, where lawmakers want to limit the number of items customers can scan at self-checkout to 15.

State data shows that in 2022 – the most recent year available – retailers in Connecticut lost $895 million to shoplifting, while the state lost $56.8 million in sales tax revenue

The bill would also require at least one staff member for every three kiosks, with businesses facing a $100 daily fine for non-compliance.

Meanwhile, some retailers are taking matters into their own hands.

In 2024, a Walmart store in Missouri removed all self-checkout machines after recording 509 police calls.

Supporters say the measures could help curb theft, but critics warn they may lead to higher prices and longer lines

Since then, incidents have dropped sharply, with just 183 calls in the first half of 2025 and arrests nearly halved.

Dollar General has also removed self-checkouts from 12,000 stores in a bid to reduce theft, a move that coincided with an 8 percent increase in first-quarter income.

At the same time, Sam’s Club, owned by Walmart, is replacing traditional checkouts with AI-powered ‘Scan & Go’ technology to speed up purchases.

Rival Costco is rolling out similar systems but has no plans to eliminate self-checkout entirely.

Data from Capital One Shopping shows that nearly 40 percent of grocery store registers in the US are now self-checkout kiosks.

While 86 percent of shoppers use them, theft rates can be up to 65 percent higher compared with traditional staffed checkouts.


Courtesy/Source: The Daily News