Walmart Implements Automatic Bag Surcharges Amid Heightened Scrutiny Over Theft and Pricing Practices

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Walmart Implements Automatic Bag Surcharges Amid Heightened Scrutiny Over Theft and Pricing Practices
Walmart automatic bag surcharges
Walmart | History & Facts | Britannica, Photo by britannica.com, is licensed under CC BY-SA 4.0

Walmart has introduced automatic surcharges on shopping bags in certain states, a move that coincides with increasing consumer concerns over retail practices. This change in policy, particularly evident in New Jersey, is part of a broader effort to comply with state-enacted bag bans and address environmental impact. Simultaneously, the retail giant faces a range of customer controversies, including allegations of self-checkout scams and price discrepancies.

In New Jersey, where a state-wide ban on single-use plastic bags has been in effect for a year, Walmart will now charge customers for shopping bags. Delivery orders will incur a 42-cent fee per bag, while pickup orders will have a 10-cent charge per bag. This marks a shift from the previous policy, where Walmart initially provided free reusable bags to help shoppers adapt to the new legislation.

Customers in New Jersey who wish to avoid the delivery bag surcharge have the option to do so. According to Walmart’s website, they must leave totes, boxes, bins, or reusable bags at their doorstep for their groceries to be placed in. This direct measure aims to promote the use of personal reusable containers for delivery services.

New Jersey’s law, as detailed by the New Jersey Business Action Center, prohibits retail stores, grocery stores, and food service businesses from providing or selling single-use plastic carryout bags and polystyrene foam food service products. Grocery stores measuring 2,500 square feet or larger, which includes Walmart’s average-sized stores spanning over 100,000 square feet, are restricted to providing or selling only reusable carryout bags. Single-use paper carryout bags are permitted in some retail settings but not for large grocery stores.

New Jersey bag bans
Opinion – Another Look at the New Jersey Bag Ban – Patriot Press, Photo by fthspatpress.com, is licensed under CC BY 3.0

Beyond New Jersey, bag bans have also been implemented in Maine, Vermont, New York, Colorado, and Connecticut. In these states, single-use bags are no longer available for in-store purchases or pickup orders at Walmart. Delivery orders in these locations can still be fulfilled with paper bags or reusable bags, typically for a fee, without the requirement for customers to leave out their own containers.

Despite the widespread bans, single-use bags remain available across all states for specific items. These include raw meats and produce, where they are used to preserve food safety and prevent potential contamination. This exception highlights a balance between environmental goals and public health considerations within the new bag policies.

Walmart states its bag policies are a direct response to global discussions on climate change and the growing problem of plastic pollution. The retailer, which serves over 240 million customers weekly, aims to significantly reduce its plastic use and environmental footprint. On its website, Walmart affirms that “compliance and commitment to the environment are equally important components in our efforts to reduce our dependence on single-use plastic.”

The introduction of bag surcharges has drawn varied reactions from customers. Some view the fees as another potential “money-making opportunity” for the retail chain, particularly amidst a period of rising inflation. A Twitter user expressed frustration, stating, “Wth??? We check ourselves out and now pay for bags.” Another user on Twitter remarked, “WALMART IS CHARGING SHOPPERS .42$ PER SHOPPING BAG? I seriously need a bigger Bingo card.”

single-use plastics
Plastics on the Menu?! – The Comenian, Photo by comenian.org, is licensed under CC BY 3.0

Conversely, some customers have expressed support for the shift away from single-use plastics. A Reddit user commented positively, describing it as “an awesome system.” The user noted, “Buy a couple of reusable bags, and use them forever. NY did away with plastic a while ago btw, sucks that all the other states didn’t follow suit.” This perspective highlights a public willingness to adapt to new environmental policies.

The bag surcharges represent one facet of broader customer controversies Walmart has encountered recently. These include scrutiny over its self-checkout systems and allegations of price gouging, which have collectively impacted consumer trust. The incidents underscore the challenges large retailers face in managing operational costs, implementing new technologies, and maintaining customer satisfaction.

Retail theft has emerged as a significant national crisis, with U.S. retailers reporting a 93% increase in shoplifting incidents since 2019. Walmart alone estimates annual losses of $3 billion due to theft. This surge has prompted retailers to implement more stringent security measures, often involving advanced technology and stricter enforcement policies.

In Memphis, Tennessee, Ashley Cross, 37, was arrested for allegedly attempting to scam a Walmart self-checkout system. She reportedly used the barcode of a low-cost item, a watch battery, to scan and pay for various higher-priced items, totaling $137.34 for just $1 each. Following her arrest, and due to a history of similar incidents, Walmart took the unusual step of banning her from all its locations nationwide.

a building with a sign on it
Photo by Zack Yeo on Unsplash

A Walmart representative commented on such rare occurrences, stating, “We value our customers and associates and want them to have a pleasant shopping experience.” The representative added, “Though rare, there are instances when someone is no longer welcome in our stores.” This case exemplifies the drastic actions retailers are taking to combat persistent theft.

Walmart has also deployed advanced technology, specifically AI-powered “Missed Scan Detection,” to deter theft at self-checkout stations. This system, in use since 2017, utilizes AI cameras to monitor items and flag those that appear to have been skipped during the scanning process. The technology aims to provide real-time alerts and reduce instances of accidental or intentional missed scans.

A viral TikTok video, although a staged skit, demonstrated the functionality of Walmart’s AI system. The clip, which garnered over 2.2 million views, showed a self-checkout screen displaying an alert: “Missed Scan Detected,” followed by, “Associate is on the way.” The system also presented an overhead video replay of the user purportedly missing a barcode scan on a backpack, highlighting its capabilities.

Further enhancing its anti-theft measures, Walmart recently introduced nearly invisible barcodes on store-branded products. These innovative barcodes enable automatic scanning, eliminating the need for customers or associates to manually locate and scan a traditional barcode. Such technological advancements reflect a continuing effort to streamline checkout processes while simultaneously strengthening security.

self-checkout theft
File:Self Checkout UK 2008.jpg – Wikimedia Commons, Photo by wikimedia.org, is licensed under CC BY 2.0

Self-checkout theft remains a particular concern for retailers. A 2023 survey indicated that 15% of shoppers admitted to stealing items at self-checkout, with only 33% of those individuals being apprehended. These statistics underscore the challenges in effectively monitoring and preventing theft in self-service environments, despite technological interventions.

In response to escalating theft rates, Walmart has implemented various stricter security measures beyond AI surveillance. These include mandatory receipt scanning at store exits and locking up frequently stolen items in display cases. While intended to curb losses, these strategies have generated some customer frustration, with concerns raised about inconvenience and the implication that all shoppers are potential criminals.

Separately, Walmart has faced accusations of price markups in the checkout line, adding another layer to the controversies. Brenna, a baker from Saratoga Springs, Utah, gained viral attention with a TikTok video warning shoppers about discrepancies between shelf prices and scanned prices. Her video, which received 320,000 views, detailed her experience during a shopping trip on July 29.

Brenna explained that Wilton chocolates, listed at $2.62 online and on the aisle shelf, rang up at $4.00 each at checkout. Alarmed by this disparity, she brought the issue to the cashier, who adjusted the prices. Brenna reported observing similar price discrepancies for five other items during the same transaction, raising concerns about systematic errors or intentional practices.

In her video, Brenna stated her belief that “Walmart is scamming people.” She alleged, “They’re purposefully marking up prices. They’re not telling you because most people are not going to check that when they’re checking out.” This perspective resonated with many viewers, some of whom shared similar experiences with pricing errors at the retailer.

Walmart issued a statement to Newsweek regarding Brenna’s claims. The company asserted, “We pride ourselves on helping customers save money to live better and are committed to selling products at the price shoppers see on our shelves.” It acknowledged the complexity of managing pricing across a vast inventory, noting, “With more than 120,000 items available in our stores, we understand our commitment requires continuous attention and innovation.”

A spokesperson for Walmart appreciated Brenna for highlighting the issue and stated, “We know we need to get better.” The company encouraged other customers to report pricing inaccuracies to associates, assuring that such matters would be addressed. This response indicates Walmart’s awareness of the issue and its commitment to resolving it.

The problem of price-scanning errors is not confined to individual customer experiences. Less than a week after Brenna’s video, the North Carolina Department of Agriculture and Consumer Services announced fines against 61 stores in the state for overcharging customers due to price-scanning discrepancies. This included 19 Walmart stores, 27 Dollar General stores, six Family Dollar stores, and two Target stores.

a walmart store with a car parked in front of it
Photo by David Montero on Unsplash

Such mistaken price markups are particularly impactful given the current economic climate. The Bureau of Labor Statistics reported that the cost of “food at home” increased by 13.1% in July from the previous year, marking the highest year-over-year increase in 43 years. Overall inflation has remained persistently high, significantly affecting the three largest basic expenses for Americans: food, housing, and energy.

Many of Brenna’s viewers echoed her sentiments and reported similar experiences. One commenter wrote, “This happens every time [I] go to Walmart,” recommending customers “Take photos of everything when you are getting your items!” Another shared, “This has happened to me 3 times already! I think it’s on purpose and they think people won’t catch it.” These customer reactions reflect a widespread concern over pricing accuracy and trust in retail pricing.

Walmart navigates a complex landscape where environmental responsibility, security against rising theft, and accurate pricing converge with consumer expectations. The implementation of bag surcharges, the deployment of AI to combat self-checkout fraud, and the ongoing challenge of pricing accuracy all contribute to an evolving relationship between the retailer and its millions of weekly customers. Balancing these operational necessities with customer convenience and trust remains a critical ongoing endeavor for the retail giant.

Walmart environmental concerns
So Last Season: The Environmental Impact of Fast Fashion and Textile Waste Exports – The National Wildlife Federation Blog, Photo by nwf.org, is licensed under CC Zero

As technology advances and consumer behaviors shift, the dynamic between retailers and shoppers will continue to adapt. Walmart’s strategies to address environmental concerns, retail theft, and pricing integrity represent significant efforts to meet these challenges. The outcomes will shape not only the company’s future operations but also the broader retail experience for consumers nationwide, highlighting the intricate process of maintaining public confidence amid operational changes and economic pressures.

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