Walmart and Target Self-Checkout Changes Could Spread as Lawmakers Target Retail Theft

Self-checkout machines have become a familiar part of the shopping experience, but a growing crackdown on retail theft could soon change how they operate.

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A new legislative push aimed at curbing shoplifting is already drawing attention after a proposal in Connecticut suggested major limits on self-checkout systems in large grocery stores. If the idea gains traction elsewhere, shoppers could start seeing fewer self-checkout kiosks and longer waits at stores like Walmart WMT -0.45% ▼ and Target TGT -1.15% ▼ .

New Rules Could Reshape Self-Checkout

The Connecticut proposal would introduce strict limits on how self-checkout stations operate. Under the bill, stores would be required to keep one staffed checkout lane open for every two self-checkout stations, while one employee would need to monitor every two machines. The proposal would also cap the number of self-checkout registers operating at a store at eight at any one time.

Supporters say the rules could help reduce retail theft while ensuring customers still have access to traditional cashier-run lanes. Self-checkout systems have been widely criticized for making it easier for dishonest shoppers to skip scanning items or manipulate barcodes.

The measure has not yet been approved, but the debate highlights growing concerns among policymakers about how automated checkout systems are changing retail.

Retailers Already Adjusting Checkout Strategies

Even without new laws, several major retailers have already begun scaling back their reliance on self-checkout. Walmart has removed self-checkout stations in some locations and replaced them with associate-staffed registers after reports of rising theft and customer complaints.

Other companies are taking similar steps. Target has limited self-checkout to customers with smaller baskets, while Costco COST -0.15% ▼ recently began phasing out certain self-checkout tools as part of an effort to reduce losses tied to theft.

Meanwhile, some local governments are exploring regulations of their own. Cities in California have discussed rules that would require employees to supervise self-checkout kiosks or limit how many items customers can scan themselves.

Are Walmart (WMT) and Target (TGT) Good Stocks to Buy Now?

For investors, the debate around self-checkout regulation highlights a broader issue facing large retailers like Walmart and Target. If stricter rules on automated checkout systems spread, retailers may need to hire more staff or reduce the number of kiosks in stores. While that could improve loss prevention and customer oversight, it may also increase labor expenses and potentially pressure margins.

Wall Street remains broadly optimistic about Walmart’s outlook. The stock carries a Strong Buy consensus rating based on 29 analyst ratings, including 26 Buys and 3 Holds, with no Sell ratings. The average price target stands at $138.92, implying ~11% upside from the current level.

Sentiment toward Target shares is somewhat more cautious but still positive overall. The stock holds a Moderate Buy consensus rating based on 25 analyst ratings, consisting of 10 Buys, 13 Holds, and 2 Sells. The average price target is $126.04, which represents ~6% upside from the latest price of $119.23.

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