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Walmart May Hike Prices, Close Stores Due to Wave of Shoplifting

(Headline USA) Walmartā€™s CEO warned this week that the company may have to raise prices or even shutter certain locations because of rampant shoplifting and soaring crime rates.

ā€œTheft is an issue. It is higher than what it has historically been,ā€ Doug McMillon told CNBC on Tuesday. ā€œIf thatā€™s not corrected over time, prices will be higher, and/or stores will close.ā€ 

McMillon said his stores have ā€œsafety measures, security measures that weā€™ve put in place by store location,ā€ and added that ā€œlocal law enforcement ā€¦ being a good partner is part of that equation.ā€

But there has been ā€œa lax approach from prosecutorsā€ that could ā€œimpact prices and lead to store closures down the line,ā€ he said.

ā€œItā€™s really city by city, location by location,ā€ he explained. ā€œItā€™s store managers working with local law enforcement and weā€™ve got great relationships there for the most part.ā€

Walmart is just one of many retailers that have seen a surge in organized theft cases over the past year. Target recently said shoplifting has jumped 50%, resulting in more than $400 million in losses this fiscal year.

ā€œThis is an industry-wide problem that is often driven by criminal networks,ā€ Target CFO Michael Fiddelke told investors in a recent earnings call. ā€œWe know weā€™re not alone across retail in seeing a trend that I think has gotten increasingly worse over the last 12 to 18 months.ā€

RiteAid also warned customers that their stores would be going to extraordinary lengths to prevent theft.

ā€œWeā€™re looking at literally putting everything behind showcases to ensure the products are there for customers who want to buy it,ā€ Rite Aidā€™s Chief Revenue Officer Arnaud Persaud said during an October earnings call. ā€œWeā€™ve even had to go to the extent of using off-duty police officers in some of our stores.ā€

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