Major retailers across the United States have taken measures such as placing common items like toothpaste, chocolate, detergent, and deodorant under lock and key. This decision is in response to a reported increase in petty theft and organized shoplifting, as the country grapples with the rising cost of living. Shoppers have expressed fear and concern while shopping due to the rise in organized retail theft.
According to an AFP report, major American retailers including Walmart, Target, CVS, Walgreens, Home Depot, and Dick’s Sporting Goods have voiced concerns about theft, including incidents of violence, and how it has impacted their recent earnings. Lauren Hobart, the CEO of Dick’s, referred to organized retail crime and theft as a serious issue affecting many retailers, with a “meaningful” impact on inventory.
Target’s CEO, Brian Cornell, stated that their stores saw a 120 percent increase in theft incidents involving violence or threats of violence during the first five months of the year. This level of inventory loss due to theft is unsustainable over the long term.
According to the National Retail Federation’s retail security survey for 2022, American retailers suffered losses of approximately $94.5 billion nationwide in 2021 due to “shrink,” which includes factors like staff theft, shoplifting, or administrative errors. The survey also highlighted a 26.5 percent increase in organized retail crime in 2021, with many respondents attributing this rise to the pandemic.
The increase in theft is partly attributed to rising inflation in the United States. The US Federal Reserve has raised interest rates over 18 months, bringing them to around 5.5 percent, the highest in 22 years. These higher rates have made borrowing more expensive, affecting both consumers and businesses.
In response to the rise in theft, stores have implemented security measures such as transparent walls with locks on shelves, padlocked chains on refrigerators, and call buttons in aisles for staff. Some stores have even reduced the stocking of unprotected shelves. Additionally, some retailers have closed stores due to theft and lack of profitability, such as Walgreens, which closed five stores in San Francisco in 2021.
US shoppers have expressed their fear and discomfort while shopping due to the increase in theft. Ann McGee, a resident of Queens, New York, mentioned feeling scared when shopping and has even stopped bringing her purse and jewelry, including her wedding ring, to the store out of concern for her safety.
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