4 ms·

When this happened in SF with Walgreens people said that the stores that were closed were actually under performing to begin even without theft factored in, and

When this happened in SF with Walgreens people said that the stores that were closed were actually under performing to begin even without theft factored in, and that theft was used as an excuse to cover it up. Is it a similar situation here?

californical 4y ago
Note that all 3 of the first sentences of the article say this exactly in slightly different ways. > “While our underlying business is strong, these specific stores haven’t performed as well as we hoped.”
- croes 4y ago
  This doesn't exclude theft as the reason of the performance.
  - soganess 4y ago
    Walmart's last quarter sales were about 115 Billion [1] There are about 4700 stores in the US [2] That means Walmart has per-store-daily-sales in excess of 200k. According to [3] I'm actually down an order of magnitude (3 million in sales a day for the "average" store) That would have to be a hell of a lot of theft. [1] https://www.marketplacepulse.com/stats/walmart-us-retail-sales https://www.marketplacepulse.com/stats/walmart-us-retail-sal... [2] https://www.statista.com/statistics/269425/total-number-of-walmart-stores-in-the-united-states-by-type/ https://www.statista.com/statistics/269425/total-number-of-w... [3] https://www.zippia.com/answers/how-much-does-the-average-walmart-store-make-a-year/ https://www.zippia.com/answers/how-much-does-the-average-wal...
    - yodon 4y ago
      The theft amount doesn't need to equal the total sales of the store to be a problem. I don't know Walmart's margins, but grocery stores have on average a 2% profit margin. If average daily shoplifting increases by 0.5% of average daily sales (an additional $1 of product stolen for every $200 of product sold), the profit of a grocery store drops by 25%. If average daily shoplifting increases 2% of average daily sales, the profit of the store drops to zero. (Typically in these kind of stores employee theft of merchandise is non-zero, so the customer merchandise theft is impacting the business on top of the baseline employee theft numbers. If you're interested in this sort or thing, it tends to be discussed under the heading of "lossage")
    - croes 4y ago
      "Walmart net profit margin as of January 31, 2023 is 1.91%." https://www.macrotrends.net/stocks/charts/WMT/walmart/profit-margins https://www.macrotrends.net/stocks/charts/WMT/walmart/profit...
raverbashing 4y ago
It's not like stores with big levels of shoplifting are likely to perform well, unless in some very specific situations

californical 4y ago

Note that all 3 of the first sentences of the article say this exactly in slightly different ways. > “While our underlying business is strong, these specific stores haven’t performed as well as we hoped.”

croes 4y ago
This doesn't exclude theft as the reason of the performance.
- soganess 4y ago
  Walmart's last quarter sales were about 115 Billion [1] There are about 4700 stores in the US [2] That means Walmart has per-store-daily-sales in excess of 200k. According to [3] I'm actually down an order of magnitude (3 million in sales a day for the "average" store) That would have to be a hell of a lot of theft. [1] https://www.marketplacepulse.com/stats/walmart-us-retail-sales https://www.marketplacepulse.com/stats/walmart-us-retail-sal... [2] https://www.statista.com/statistics/269425/total-number-of-walmart-stores-in-the-united-states-by-type/ https://www.statista.com/statistics/269425/total-number-of-w... [3] https://www.zippia.com/answers/how-much-does-the-average-walmart-store-make-a-year/ https://www.zippia.com/answers/how-much-does-the-average-wal...
  - yodon 4y ago
    The theft amount doesn't need to equal the total sales of the store to be a problem. I don't know Walmart's margins, but grocery stores have on average a 2% profit margin. If average daily shoplifting increases by 0.5% of average daily sales (an additional $1 of product stolen for every $200 of product sold), the profit of a grocery store drops by 25%. If average daily shoplifting increases 2% of average daily sales, the profit of the store drops to zero. (Typically in these kind of stores employee theft of merchandise is non-zero, so the customer merchandise theft is impacting the business on top of the baseline employee theft numbers. If you're interested in this sort or thing, it tends to be discussed under the heading of "lossage")
  - croes 4y ago
    "Walmart net profit margin as of January 31, 2023 is 1.91%." https://www.macrotrends.net/stocks/charts/WMT/walmart/profit-margins https://www.macrotrends.net/stocks/charts/WMT/walmart/profit...

raverbashing 4y ago

It's not like stores with big levels of shoplifting are likely to perform well, unless in some very specific situations