Why do kmart scan your receipt on the way out

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Last updated: April 8, 2026

Quick Answer: Kmart scans receipts at store exits primarily to prevent theft and verify purchases, a practice implemented in the early 2000s as part of loss prevention strategies. This involves checking receipts against items in carts or bags, especially for high-value merchandise or unbagged items. While not legally required for customers to comply in most jurisdictions, it helps reduce shrinkage and ensures inventory accuracy. The practice is common among major retailers like Walmart and Costco, with Kmart adopting it during its operational peak before store closures accelerated in the 2010s.

Key Facts

Kmart began implementing receipt scanning in the early 2000s as part of anti-theft measures
The practice aims to reduce shrinkage, which costs retailers billions annually; in 2020, U.S. retail shrinkage totaled $61.7 billion
Receipt checks are typically for high-value items, unbagged goods, or during peak theft periods
Kmart's parent company, Sears Holdings, filed for bankruptcy in 2018, leading to widespread store closures
Similar policies are used by retailers like Walmart, Target, and Costco, with Costco requiring receipt checks per membership agreements

Overview

Kmart, founded in 1899 as S.S. Kresge Corporation and rebranded as Kmart in 1962, became a major American discount department store chain. By the late 20th century, it faced increasing competition and theft issues, prompting enhanced loss prevention measures. In the early 2000s, Kmart introduced receipt scanning at exits, mirroring practices from retailers like Walmart and Costco. This occurred during a period of financial strain; Kmart filed for Chapter 11 bankruptcy in 2002, emerging in 2003 after closing hundreds of stores. The receipt-checking policy was part of broader efforts to curb shrinkage, which includes shoplifting, employee theft, and administrative errors. Historically, Kmart operated over 2,000 stores at its peak in the 1990s, but by 2024, only a handful remained open after Sears Holdings' bankruptcy and restructuring.

How It Works

Kmart's receipt scanning process involves employees stationed at store exits who visually inspect receipts and compare them to items in customers' carts or bags. They may use handheld scanners to verify barcodes on receipts against purchased items, ensuring accuracy. This typically targets high-value products like electronics, unbagged items, or during busy times like holidays when theft risks increase. The system relies on point-of-sale data; receipts include timestamps, item lists, and prices, allowing quick cross-referencing. Employees are trained to conduct checks politely, often marking receipts with a stamp or highlighter to indicate completion. While not mandatory by law in most U.S. states, refusal might lead to denied exit or security involvement if theft is suspected. The practice integrates with electronic article surveillance (EAS) systems, where security tags on merchandise trigger alarms if not deactivated at checkout.

Why It Matters

Receipt scanning matters for loss prevention, directly impacting Kmart's profitability by reducing shrinkage, which accounted for 1.4% of retail sales in 2020. It deters theft, saving costs that could otherwise lead to higher prices for consumers. For customers, it ensures purchase accuracy and can help identify checkout errors. In a broader context, it reflects retail trends toward security measures amid rising theft rates, with organized retail crime increasing by 26.5% in 2021. The practice also highlights legal nuances; while customers generally aren't required to comply, it balances store rights with consumer privacy. As Kmart declined, with store counts dropping from over 1,300 in 2010 to under 10 in 2024, such policies underscored efforts to sustain operations in a competitive market.