Walmart CEO Doug McMillon gave a very serious warning on Tuesday: If the theft issue doesn’t stop, the company will close stores all over the country.
Theft is an issue,
he told CNBC.
It is higher than what it has historically been.
He then added,
If that’s not corrected over time, prices will be higher, and/or stores will close.
During the interview, McMillon did not say how much money Walmart has lost this year because of stolen items. When an insider asked Walmart for that number, they didn’t answer right away.
But a source reported in 2015 that the biggest store in the world probably loses about 1% of its US sales, or about $3 billion, every year because customers and employees steal.
McMillon said that the best way to stop theft is for Walmart to work with local law enforcement agencies and make sure they have enough people to do their jobs.
The retail giant based in Bentonville, Arkansas, isn’t the only store that has recently warned customers about theft.
Target’s gross margin has gone down by more than $400 million in 2022 compared to last year because of missing inventory. Target’s CFO, Michael Fiddelke, said in November during a company earnings call that the company expects these profit losses to grow to $600 million by the end of the fiscal year.
Target mostly blamed organized crime for the loss of inventory.
During the earnings call, Brian Cornell, who is the CEO of Target, said,
Along with other retailers, we’ve seen a significant increase in theft and organized retail crime across our business.
