Target and Walmart Push Back on New Retail Theft Laws, Citing Self-Checkout Losses

October 14, 2025 – Large retailers including Target and Walmart are pushing back against a newly proposed law aimed at curbing retail theft by increasing oversight and regulation of self-checkout lanes. The proposed legislation would require stricter rules for self-checkout systems, including more staff monitoring, item caps, and possibly removing access to some kiosks altogether.

Retailers argue that while theft is a growing concern, self-checkout remains popular with customers as a convenience tool. They claim the law would raise operational costs and potentially lead to longer lines or reduced availability of self-checkout options.

The data supports some of their concerns: theft rates are significantly higher at self-checkout compared with traditional cashier-staffed lanes. Self-checkout shrinkage (losses due to theft or error) tends to average 3.5% to 4% of sales, while traditional checkouts typically lose less than 1%. Reports show many incidents involve “skip-scanning” (failing to scan items properly or intentionally) and mis-scanning — often mistakes or abuse by shoppers. Some studies estimate self-checkout sees up to four times more shrink than staffed lanes.

In response, Target has already begun implementing limits — for example, most of its stores now limit self-checkout to 10 items or fewer, paired with more staffed lanes for larger purchases. Walmart has selectively removed or reduced self-checkout kiosks in some locations experiencing high theft.

Supporters of the new law argue that stronger regulation is necessary to stop organized retail crime, which has exacerbated shrinkage across the industry. Opponents say that while theft must be addressed, the legislation should balance consumer convenience and cost. As the debate unfolds, both Target and Walmart are bracing for adjustments, both at the checkout and in lobbying efforts around the bill.