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Lack of arrests and prosecutions for theft of merchandise. Despite popular opinion, stores can’t just magically subsidize thieves through insurance or a tax wr

by _2z1p 3y ago

Lack of arrests and prosecutions for theft of merchandise. Despite popular opinion, stores can’t just magically subsidize thieves through insurance or a tax write off and Walmart’s low margin business model doesn’t leave enough room to eat these costs once they become large enough. I know this is anecdotal, but I’ve noticed more and more products at my local Walmart (not even in a high crime neighborhood) being put inside locked cabinets. Even razor blades, condoms, and beauty products need to be locked up. Shoplifting is spiraling into an epidemic because it is no longer being treated as a serious crime.

wsatb 3y ago
Wrong. They’re not losing that much money because of theft. They thought they could come into these neighborhoods and profit and it turns out they were wrong. They’re the bad guys, go look up how much these stores were not wanted by its residents.
- sgregnt 3y ago
  That does not make them bad guys
- kennend3 3y ago
  Speaking of "Wrong"... https://www.dailymail.co.uk/news/article-10112809/Chicago-blighted-shoplifting-shoplifters-prosecuted-steal-1000.html https://www.dailymail.co.uk/news/article-10112809/Chicago-bl... https://chicagocrusader.com/shoplifting-a-big-problem-at-local-market-in-south-shore/ https://chicagocrusader.com/shoplifting-a-big-problem-at-loc... But you just put "wrong" with zero facts, this surely makes you right..
iudqnolq 3y ago
The average shrink rate has hovered around 1.4% of sales for the past decade[1]. We don't know exactly what shrink is because the rate is low enough companies don't bother investigating in depth. It includes some mistakes and damage, employee theft, and shoplifting. [1] https://www.cnn.com/2023/01/18/business/retail-shoplifting-shrink-walgreens/index.html https://www.cnn.com/2023/01/18/business/retail-shoplifting-s...
- retrac 3y ago
  > 1.4% of sales What are the margins in typical retail? If 10%, then that's some 10% of the margin lost to shrink. > In 2021, retail shrink hit $94.5 billion, I realize the economy as a whole is big, but that's still a pretty big number. Like, the budget of a large state's government. Still, not all of it is theft. As you say shrink is a larger category than that.
  - iudqnolq 3y ago
    What I was trying to point out is that contrary to the breathless reporting this isn't a new problem and it isn't getting worse. So it's unlikely any recent phenomenon is to blaim.
- deleted 3y ago
  [deleted]

by _2z1p 3y ago

wsatb 3y ago

Wrong. They’re not losing that much money because of theft. They thought they could come into these neighborhoods and profit and it turns out they were wrong. They’re the bad guys, go look up how much these stores were not wanted by its residents.

sgregnt 3y ago
That does not make them bad guys
kennend3 3y ago
Speaking of "Wrong"... https://www.dailymail.co.uk/news/article-10112809/Chicago-blighted-shoplifting-shoplifters-prosecuted-steal-1000.html https://www.dailymail.co.uk/news/article-10112809/Chicago-bl... https://chicagocrusader.com/shoplifting-a-big-problem-at-local-market-in-south-shore/ https://chicagocrusader.com/shoplifting-a-big-problem-at-loc... But you just put "wrong" with zero facts, this surely makes you right..

iudqnolq 3y ago

The average shrink rate has hovered around 1.4% of sales for the past decade[1]. We don't know exactly what shrink is because the rate is low enough companies don't bother investigating in depth. It includes some mistakes and damage, employee theft, and shoplifting. [1] https://www.cnn.com/2023/01/18/business/retail-shoplifting-shrink-walgreens/index.html https://www.cnn.com/2023/01/18/business/retail-shoplifting-s...

retrac 3y ago
> 1.4% of sales What are the margins in typical retail? If 10%, then that's some 10% of the margin lost to shrink. > In 2021, retail shrink hit $94.5 billion, I realize the economy as a whole is big, but that's still a pretty big number. Like, the budget of a large state's government. Still, not all of it is theft. As you say shrink is a larger category than that.
- iudqnolq 3y ago
  What I was trying to point out is that contrary to the breathless reporting this isn't a new problem and it isn't getting worse. So it's unlikely any recent phenomenon is to blaim.
deleted 3y ago
[deleted]