Retail

Why Wal-Mart Is Adding Store Greeters? Shoplifting

Douglas A. McIntyre

Published: May 5, 2016 6:44 am

Last Updated: January 13, 2020 9:51 am

Wal-Mart Stores Inc. (NYSE: WMT) has announced it will add greeters at its stores. They are not there to make customers feel comfortable as much as to keep people from stealing merchandise. However, almost none of Wal-Mart’s customers will know that.

Wal-Mart admits its shoplifting plan in its comments about the new system:

We know a one-size-fits-all-approach to our door coverage won’t work for our more than 5,000 stores. To help ensure each store has the coverage it needs, we’re using data on safety, security and shrink risks to guide us on  how best to staff our entrances. Where our data tells us the risk is higher, we’ll add the new customer host. We expect to fill about 9,000 of these new hourly positions that are specially trained to both welcome customers as soon as they walk in and also help deter would-be shoplifters.

In all probability, these workers will more than pay for themselves, although most are moving from other jobs. That makes their productivity in cutting shoplifting even better.

Very few customers will read the Wal-Mart public relations release, which means they will think greeters are part of the creation of a more friendly Wal-Mart, one in which someone can guide them where they want to go.

Very few decisions by major corporations improve customer relations while protecting the bottom line. The Wal-Mart move is ingenious.