Per MW
Retailers say they lost $100 billion in theft
5/19/2023
Retailers have started to voice their concerns even more regarding theft, saying they lost $100 billion in 2022. These include organized retail theft as well as the usual smash-and-grab robberies.
Examples of retailers struggling to deal with theft can be seen as REI, one of the known retailers, having announced that they plan to close one of its best-performing stores. They decided to close down a store located in downtown Portland, Oregon.
They specifically cited shoplifting and the high crime rate as the reasons for closing the stores. REI gave a statement to Market Watch, revealing that throughout 2022, they spent $800,000 in excess just on security alone.
REI also decided to replace its windows with security glass over the course of the past two years. During this period, they also installed better lighting and 24/7 security cameras.
Per a company representative, the store experienced ten burglaries last year, including a Black Friday crime where a car slammed directly through the store entrance.
Chesley Lindsey, a former store employee, gave a statement regarding what they thought the company was doing. The former employee was a big advocate for unionization at the store.
Lindsey: “The reasons they were stating for closing just felt really convenient, because those cited problems have been problems for years,”
Toward the end of 2022, Walmart saw a rise in theft, which could lead to increased prices and store closure. During that time, CEO McMillion gave a statement regarding the possible effects.
McMillion: “We’ve got safety measures, security measures that we’ve put in place by store location. I think local law enforcement being staffed and being a good partner is part of that equation, and that’s normally how we approach it,”
Aside from Walmart, Target has expressed its concerns regarding theft, saying it saw $400 in extra profit loss due to organized retail crime, shoplifting, and theft.
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Other News:
- Rising thefts at Walmart, $WMT, could lead to price jumps, store closures
- Organized retail crime, shoplifting, and theft has driven $400 million in extra profit loss this year at Target
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