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Walmart branch in Washington: drastic warning
Photo: Nicholas Kamm / AFP
According to US dealers, they have a massive problem with stolen goods.
Now the industry giant Walmart is sounding the alarm.
"Theft is a problem," CEO Doug McMillon told CNBC.
"It's higher than in the past." At the same time, he announced the consequences.
"If this is not corrected over time, prices will be higher and/or stores will close."
His warning should be aimed less at thieves and more at authorities and politics.
McMillon said the key to reducing theft is for Walmart to work with local law enforcement.
It must be ensured that these authorities are fully staffed.
The manager did not say how much damage was done to Walmart.
The Reuters news agency had already published an estimate in 2015.
According to this, the world's largest retailer lost about one percent of its US sales at the time through stealing customers or employees.
That equated to about $3 billion a year in 2015.
Steel cables against thieves
Walmart isn't the only retailer to sound the alarm about theft.
The chief financial officer of the US chain Target said in November that he expected a loss of 600 million dollars in profits by the end of the fiscal year compared to the previous year simply because of the lack of stocks.
Target primarily blamed organized crime for the dwindling population.
"Together with other retailers, we have seen a significant increase in theft and organized retail crime across our business," said Target CEO Brian Cornell.
According to the Reuters news agency, retailers have already reacted to the thefts with a view to the Christmas business.
Accordingly, they install cameras or lock away goods to deter shoplifters.
Walmart, JC Penney, Apple and Walgreens are therefore relying on new surveillance systems or more security personnel.
Others, like Target and Barnes & Noble, sealed merchandise behind plexiglass or even tied them to shelves with steel cables.
Advisors reckon that, in the end, honest customers will also suffer from theft.
“Profits are being squeezed at a time of the highest inflation in 42 years.
And now that the cost of preventing crime is rising, that's being passed on in higher prices," said the head of a consulting firm.
Pleasure buyers stay away
The impact on holiday sales and profits "will be terrible," he warned.
Products like shampoos and toothpaste would be locked away.
Consumers, in turn, would avoid such overly secured stores.
"So overall, retailers are losing both planned purchase and impulse purchases," the consultant said.
Violent shoplifting caused a stir in the United States last year.
During the Christmas season, 80 people stormed into a store near San Francisco, grabbed goods and ran out again.
At that time, five employees were injured.
A survey by the National Retail Federation (NRF) found that "organized retail crime" committed by groups in the United States increased by 26.5 percent last year.
mmq/Reuters
