Theft Rising at U.S. Wal-Mart Stores

[MA-Caver]

Theft Rising at U.S. Wal-Mart Stores
Wednesday June 13, 6:40 pm ET
By Anne D'Innocenzio and Marcus Kabel, AP Business Writers
Wal-Mart Struggling With Rising Loss From Shoplifting and Employee Theft at Its U.S. Stores
http://biz.yahoo.com/ap/070613/wal_mart_theft.html?.v=11
NEW YORK (AP) -- Shoppers at Wal-Mart stores across America are loading carts with merchandise -- maybe a flat-screen TV, a few DVDs and a six-pack of beer -- and strolling out without paying. Employees also are helping themselves to goods they haven't paid for.
The world's largest retailer is saying little about these kinds of thefts, but its recent public disclosures that it is experiencing an increase in so-called shrinkage at its U.S. stores suggests that inventory losses due to shoplifting, employee theft, paperwork errors and supplier fraud could be worsening.
The hit is likely to rise to more than $3 billion this year for Wal-Mart Stores Inc., which generated sales of $348.6 billion last year, according to retail consultant Burt Flickinger III.
Flickinger and other analysts say the increase in theft may be tied to Wal-Mart's highly publicized decision last year to no longer prosecute minor cases of shoplifting in order to focus on organized shoplifting rings. Former employees also say staffing levels, including security personnel, have been reduced, making it easier for theft to occur. And a union-backed group critical of the retailer's personnel policies contends general worker discontent is playing a role.
Wal-Mart declined to offer any explanations for the rise in losses, but denied it has cut security staff and said employee morale is rising rather than falling.
Although Wal-Mart declined to reveal any details, analysts suspect Wal-Mart -- which for years had a theft loss rate that was half that of its peers -- is getting closer to the industrywide average. Theft is a big problem for all retailers, costing them $41.6 billion last year, according to a joint study released Tuesday by the National Retail Federation and the University of Florida. The study found that the theft rate as a percentage of sales ticked upward slightly to 1.61 percent of sales in 2006 from 1.60 percent in 2005.

One wonders if they don't do something quick if stores won't be closing around the country. I mean they are but those are stores that have been placed in a bad location or just aren't "super-stores" which seem to be more popular because it makes it a one-stop shopping place.

Maybe some small mom & pop store that got shut out laid a voodoo curse on walmart and this is the result?? nah...

 

[Steel Tiger]

Looking at the sales figures compared to the shrinkage figures, I would have to say that the shrinkage is probably not affecting profits all that much. That might account for the silence from Wal-Mart executive. But even so, the theft could well result in the closure of stores which may or may not be a good thing if the evidence presented in another thread is any indication.

 

[tellner]

I find that I can bear the misfortunes of WalMart with great fortitude.

 

[Carol]

I find that I can bear the misfortunes of WalMart with great fortitude.

Must be the Silat