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Inventory Shrinkage

All articles tagged with #inventory shrinkage

retail3 years ago

Retail Giants Sound the Alarm: Rising Crime Rates Threaten Sales and Customer Safety

Walmart, Home Depot, and Target have all reported significant losses due to retail theft and organized retail crime. The National Retail Federation's National Retail Security Survey revealed that retail shrinkage cost the industry nearly $100 billion in 2021, more than double the amount in 2015. The issue is not limited to shoplifting, as organized retail crime and employee theft have become growing concerns. Violence during theft incidents has also increased, with Target reporting a 120% rise in theft incidents involving violence or threats of violence. Retailers are implementing security measures, such as locking up merchandise, but these measures can impact the consumer experience. The government, retailers, communities, and consumers need to work together to address this issue.

business3 years ago

Retail Giants Walmart and Target Battle Organized Crime and Sales Decline

Walmart reported better-than-expected Q1 same-store sales growth despite facing profit headwinds from rising organized retail crime, similar to rival Target. Walmart CFO John David Rainey emphasized the need for engagement from local communities to help solve the issue. Target estimated that inventory shrinkage would cost it $500 million this year due to organized retail crime, which is getting worse and is nationwide. The problem has caused big retailers to vacate certain high-crime cities. Goods stolen from stores led to $94.5 billion in losses in 2021, up from $90.8 billion in 2020, according to a study by the National Retail Federation.