(Headline USA) Walmartās 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.
āTheft is an issue. It is higher than what it has historically been,ā Doug McMillon told CNBC on Tuesday. āIf thatās not corrected over time, prices will be higher, and/or stores will close.ā
McMillon said his stores have āsafety measures, security measures that weāve put in place by store location,ā and added that ālocal law enforcement ā¦ being a good partner is part of that equation.ā
But there has been āa lax approach from prosecutorsā that could āimpact prices and lead to store closures down the line,ā he said.
āItās really city by city, location by location,ā he explained. āItās store managers working with local law enforcement and weāve 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.
āThis is an industry-wide problem that is often driven by criminal networks,ā Target CFO Michael Fiddelke told investors in a recent earnings call. āWe know weāre 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.
āWeāre looking at literally putting everything behind showcases to ensure the products are there for customers who want to buy it,ā Rite Aidās Chief Revenue Officer Arnaud Persaud said during an October earnings call. āWeāve even had to go to the extent of using off-duty police officers in some of our stores.ā