Theft Is Now Costing Retailers in the United States About 100 BILLION Dollars a Year

DISCERN REPORT ^ | May 20, 2023 | Michael Snyder

[E. Pluribus Unum]

If we don’t fix this, will the retail industry be able to survive? There has always been shoplifting, but in the old days it was at a level that made it only a minor nuisance to the big box retailers. Unfortunately, now everything has changed.

Highly organized gangs have developed extremely sophisticated plans for how to rapidly loot our major retailers, and the best ones can be in and out in just minutes. Those goods are then resold online or in the streets, and the amounts that we are talking about are absolutely staggering. In fact, as you will see below, theft is now costing retailers in this country about 100 billion dollars a year.

This week, Target made headlines all over the nation when it publicly admitted that theft will cost it 500 million more dollars than it did last year…

Target said Wednesday that organized retail crime will fuel $500 million more in stolen and lost merchandise this year compared with a year ago.

Target’s inventory loss, called shrink, totaled about $763 million last fiscal year, based on calculations from the company’s financial filings. With the anticipated increase, shrink this year would surpass $1 billion.

Let’s do some math. 763 million from last year plus 500 million more this year equals 1.263 billion dollars. Please keep in mind that this is just one chain.

As Target CEO Brian Cornell openly admitted earlier this week, organized retail crime has become a massive problem “across the entire retail industry”…

‘The unfortunate fact is violent incidents are increasing at our stores and across the entire retail industry. And when products are stolen, simply put they are no longer available for guests who depend on them.

‘Left unchecked, organized retail crime degrades the communities we call home. As we work to address this problem, the safety of our guests and our team members will always be our primary concern.

[jagusafr]

1. Funnel all shoppers through a single access point and make them check their bags.
2. Maybe back to cutting off the right hand of a a convicted thief?..

[mewzilla]

I was in a big box store not long ago.

Four employees were standing around watching long, slow lines at the four self-checkouts.

Those four employees likely could have gotten customers on their way a lot faster.

But instead the retailer was paying them to stand around.

It’s not just the customers retailers don’t trust, is it...

[George from New England]

100 Billion — there’s your reparations !!!

Slate clean I say.

[unread]

These animals don't respect private property, or much of anything else for matter. They will continue to lay waste to everything until someone lays down the law and puts a stop it.

That probably won't be any of those worthless thieving lawyers that are in in DC now, they're part of the thieving horde..

[mewzilla]

It’s not just customers...

[meyer]

Maybe make the punishment more severe? They used to hang horse thieves.

[RoosterRedux]

It's not just like civilization is crumbling. It's like humans themselves are crumbling.

They've collectively and individually lost their minds.

[Qiviut]

The local Walmart now has someone at the door all the time. If you have items in the cart that are too big to bag, they’ll for sure ask to see your ticket ... I keep my ticket out until I get past the door. I also noticed the employee(s) at the self-checkout are a lot more vigilant than they used to be - it’s obvious they are watching now, rather than just hanging out in the event there’s an issue with ringing up something.

[marktwain]

if they spent a little on security and let them do their jobs, they’d have more $$ in the long run.

The key is "letting them do their jobs". This is very difficult when prosecutors and the city governments are doing everything they can to *not* prosecute theft.

[sten]

Blue districts supporting open crime will be abandoned by retail?

I can’t shrug loud enough.

[SamAdams76]

One of my sons works for a major retail chain at their HQ. They have a very strict policy that their employees do not confront shoplifters. If they see a customer stuffing their pockets with merchandise and walking out of the store, they are literally told to stand down and take no action whatsoever and let their "undercover" security handle it.

Without too much fanfare, the chain is shuttering locations in urban high-crime areas and focusing on putting the new stores in safer suburban areas.

As we all know, many major retailers are taking this approach to the problem. Those blighted urban areas are turning into retail deserts, with the only stores remaining tending to be immigrant owned, with metal grates covering the storefronts at night. Their merchandise will also tend to be much more expensive than what the chain stores offered.

[cyclotic]

I refuse to show my receipt. As soon as I pay for the item, it becomes my property and they no longer have any right or title to it.

Our criminal justice system is clear that they must prove me guilty, I don’t have to prove my innocence.

Here’s a better way. Train your staff.

A few months ago at Home Depot, I was at the self checkout with both some personal items and stuff I was buying for my job.

As I completed one purchase, a girl came up and politely said “Sir, I think you missed something on your purchase.”

I told her that it was a separate transaction and thanked her for caring enough to mention it and challenge me.

[Spok]

And the politicians that supported BLM and Antifa rioting are surprised and dismayed, again proving that stupidity is more destructive than malice.

[Dilbert San Diego]

I’ve heard theft happens at self checkout.

Someone will scan their items, but “forget” to scan a few here and there.

[Reno89519]

We need to enact some serious, maybe even federal law regarding theft. Anything over $100 the up to a year in jail, anything over $100 should be treated as a felony with a year or more minimum sentence. If that were in place, and in Forrest, I bet soft would drop quickly. All it will take is a few good examples.

[cgbg]

Even if prosecutors refuse to prosecutors there are many actions stores can take to reduce theft.

They can work to identify thieves and ban them from the location. They can catch them and retrieve the merchandise. Chains can share information about the thieves with their other area stores.

There are hundreds of other tactics that can be used, including identifying items most likely to be stolen and placing them behind security cages.

It would be better if prosecutors went after the thieves, but the stores can do a lot.

[Reno89519]

I was at a Walmart self-serve check out a couple months ago and walked up to the register as the previous shopper was walking away with bags in her hands. The screen still showed payment due. I called over the Wal-Mart associate, who simply cleared the register for me to make my purchase, did absolutely nothing about the woman walking away with her unpaid bags of items, still in sight. It will take both laws that are enforceable, and retailers who actually want to address the issue to solve this.

[SkyDancer]

More and more stores will go to on-line sales, the local stores will just close down.

[Qiviut]

I don’t have a problem showing my receipt. It’s not “paid” items they are worried about, it’s people walking out with “unpaid” items and personally, I believe they have a right to look at a receipt and make sure items, particularly large, expensive ones that are obvious in the cart, are all “paid”. Just having someone posted at the door is a deterrent - I wouldn’t want the job because some shoplifters have gotten violent when employees have tried to stop them.

[Alberta's Child]

That’s exactly right. Shrink/theft is not an expense. It’s a lost opportunity for sale.

If I buy 100 widgets for $10 apiece and sell them for $20 apiece, my cost is $1,000 and my revenue is $2,000 … so I am taxed on the $1,000 profit.

If 10 of the widgets are stolen, then my cost is still $1,000 but my revenue is only $1,800 … which means I am paying taxes on the $800 profit.

So shrink/theft is only “tax deductible” to the extent that the cost of the merchandise is deductible. The IRS doesn’t distinguish between a widget that is stolen, a widget that is damaged, and a widget that simply doesn’t get sold for any reason.