Retail Organized Crime POLL

Inventory shrink driven by organized retail crime is expected to reduce profitability by an additional $500 million this year, the retailer’s CEO Brian Cornell said last week.

“The problem affects all of us, limiting product availability, creating a less convenient shopping experience, and putting our team and guests in harm’s way,” Mr. Cornell said during the discounter’s first-quarter analyst call. “The unfortunate fact is violent incidents are increasing at our stores and across the entire retail industry.”

According to the National Retail Federation’s 2022 National Retail Security Survey, organized retail crime incidents rose 26.5 percent in 2021.

Home Depot, Lowe’s, Best Buy, Walgreens and CVS in recent years have also expressed public concern over organized bands of thieves ransacking their stores and reselling goods on online marketplaces.

Walmart CEO Doug McMillon warned last December that rising theft could lead to store closures and price hikes.

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