Posted on 09/26/2023 1:15:52 PM PDT by nickcarraway
Retailers reported losing a record $112.1 billion to inventory shrink in 2022, according to the National Retail Federation's annual Retail Security Survey, published Tuesday.
External theft was the largest contributing factor to shrink, followed by theft by employees. Combined, the two categories of theft account for roughly two-thirds of total shrink.
While the total losses are roughly $18 billion higher than the prior record of $94 billion in 2021, shrink as a percentage of sales ticked back up to 1.6% after it dipped to 1.4% in 2021.
In other words, the problem is still in line with historical norms relative to revenues, at least in financial terms.
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Recent analysis has suggested that theft has played a smaller role in squeezing retailers' profit margins than some have blamed it for.
But in a significant shift, more than two-thirds of respondents said they were seeing higher levels of violence and aggression from retail criminals than in prior years.
For example, Target CEO Brian Cornell noted in August that shoplifting incidents with violence or threats of violence had more than doubled since January.
"Retailers are seeing unprecedented levels of theft coupled with rampant crime in their stores, and the situation is only becoming more dire," NRF's head of asset protection and retail operations, David Johnston, said in the report.
"Far beyond the financial impact of these crimes, the violence and concerns over safety continue to be the priority for all retailers, regardless of size or category," he added.
Nearly half of survey respondents said they reduced specific stores' operating hours in response to retail crime, while 28% reported closing specific stores altogether.
Some of the products most commonly stolen by organized retail crime groups include alcohol, branded athletic shoes, infant formula, and shaving products, the report found.
(Excerpt) Read more at businessinsider.com ...
One of the stocks in my portfolio is Target. Target and other retailers have lost a lot of money due to shoplifters. I read in the news today Target is closing several stores due to theft loss in the cities these stores are located in. Walgreens and CVS have similar losses.
Thank a democrat for these conditions. If it were up to me, looters and shoplifters (same thing) would be shot. The shop owner or cop would receive a $1,000 bounty for each occurrence.
Not after they go out of business.
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