Walmart is warning stores will close across the country if retail theft doesn’t stop. Reuters has reported the retail giant loses nearly $3 billion each year. However, that number has recently increased to historic highs, according to Walmart’s CEO. While the CEO would not give a specific number for this year’s losses to Insider, he says it’s enough to increase prices and close down stores. Walmart isn’t the only retailer dealing with a historic spike in retail theft. Target reports that stolen inventory reduced its 2022 gross margin by more than $400 million compared to last year. Target’s CEO blames losses in the retail industry on organized retail theft.
Why should you care about giant retailers losing money to theft? Walmart’s warning explains it best. Prices will rise, and you will be forced to foot the bill. The National Association for Shoplifting Prevention previously reported retail theft costs taxpayers $33.21 billion a year.
As a consumer, you may not feel a drastic hit to your pockets because of retail theft. However, as a small business owner, your bank accounts are taking a harsh hit. According to the U.S. Chamber of Commerce, 54% of small business owners experienced an increase in shoplifting in 2021.
What’s being done to combat retail theft? Walmart says its working closely with local officials in every area where there is a Walmart to address the issue. In D.C. House has passed the INFORM Act, which would make it more difficult to sell stolen goods online. The bill would cut off a critical source that drives retail theft.
As we wait for the news if the Senate has passed the bill, here are a few “fun facts” to help you better prevent your business from losing money:
- There is no average profile for shoplifters
- 75% of shoplifters are fully grown. Only 25% of teens and young children shoplift
- Another interesting fact, many shoplifters buy something and steal merch during the same visit.
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