(new nation) — Walmart is considering store closures and possible price increases to address what the company says is an increase in shoplifting.
Walmart CEO Doug McMillon said on Tuesday, CNBC’s “Squawk Box” Its theft is higher than it has historically been.
“If it’s not corrected over time, prices will go up or stores will close,” says McMillon.
NewsNation reached out to Walmart to confirm how much money the company has lost to shoplifting this year.McMillon did not provide exact figures in an interview with CNBC.
Target, another large retailer, has also seen an increase in thefts. Last month, CNBC reported that the company’s chief financial officer, Michael Fiddelke, said shoplifting surged about 50% year-over-year, equating to more than $400 million in losses for him in the current fiscal year alone.
A recent study by the National Retail Federation found that organized crime will increase by 26.5% in 2021. Overall, retailers will lose about $100 billion to organized crime in 2021.
“[Shoplifters]will do anything to get out of the store with the goods,” said Lisa Labbruno of the Association of Retail Industry Leaders. “They have identified products they feel are in high demand, and … it’s like they have a Christmas list.”
In Los Angeles this week, police arrested 18 people who said they shoplifted at stores around Los Angeles County. They are said to have stolen approximately 23,000 worth of clothing from several stores. NewsNation’s local affiliate KTLA reported.
Retail analyst and financial expert Hisa Herzog said consumers could be affected by theft as security measures in stores have increased.
A Philadelphia gas station hired armed Pennsylvania SITE Security State Agents for protection after several robberies.
Andre Boyer, the Pennsylvania site’s chief security national agent, said he was armed with an AR-15.
“If only there was a deterrent at the front door,” he told NewsNation.
https://www.mystateline.com/news/walmart-ceo-stores-could-close-with-uptick-in-shoplifting/ Increased shoplifting could lead to store closures