Proactive Investors - The leaders of two of America’s largest retail chains, Walmart Inc (NYSE:WMT) and Target Corporation (NYSE:NYSE:TGT), say more needs to be done to prevent retail crime as it continues to impact their profits and threaten the safety of their staff and customers.
This week, Walmart CEO Doug McMillon told investors that he wants to see action at a local level.
“We do think that in some jurisdictions here in the U.S., there needs to be action taken to help protect people from crime, including theft,” he said.
He added that Walmart’s “shrink,” which refers to inventory losses related to theft and other circumstances, has increased “a bit” this year and unevenly across the country.
Target CEO Brian Cornell also told shareholders this week during the company’s earnings call that it “continues to face an unacceptable amount of retail theft and organized retail crime.”
He said during the first five months of the year, Target stores saw a 120% increase in theft incidents involving violence or threats of violence.
“As a result, we're continuing to work tirelessly with retail industry groups and community partners to find solutions to promote safety for our store teams and our guests,” he said.
According to trade group RILA, organized retail crime cost U.S. retailers nearly $70 billion in 2020.
It's also bad news for consumers, as retailers typically increase their prices to offset the hit to their margins from higher costs, including losses from retail crime.