US retailers voice alarm at rising theft
NEW YORK
Toothpaste, chocolate, washing powder and deodorant - everyday products are increasingly under lock and key at U.S. retailers, as petty theft and organized shoplifting rise while consumers grapple with costs of living.
Major retailers Walmart and Target, drugstore chains CVS and Walgreens, as well as home improvement firm Home Depot and footwear seller Foot Locker are among those to have voiced concern over more thefts - including violent incidents - in their latest earnings results.
"During the first five months of this year, our stores saw a 120 percent increase in theft incidents involving violence or threats of violence," said Target chief executive Brian Cornell in a separate briefing.
"Our team continues to face an unacceptable amount of retail theft and organized retail crime," he said.
He noted a loss of inventory well above what is sustainable over the long term.
This comes as interest rates have surged from close to zero to around 5.5 percent over 18 months - the highest level in 22 years - as policymakers seek to curb inflation.
Higher lending costs make it pricier to borrow funds for big ticket purchases, or for companies to expand their businesses - and consumers have been feeling the squeeze.
According to the National Retail Federation's 2022 retail security survey, retailers lost an estimated $94.5 billion nationwide to "shrink" in 2021 alone.
Retail shrink means the loss of inventory from factors including staff theft, shoplifting or administrative errors.
The survey also noted that retailers on average saw a 26.5 percent rise in organized retail crime in 2021, with a majority of respondents reporting that the pandemic has led to an increase in risks.
As a result, stores have been installing transparent walls with locks on shelves, sometimes padlocked chains on refrigerators, and scattering call buttons in aisles for staff.
Unprotected shelves are often sparsely stocked as well, to limit shoplifting.
But such security measures are not always an effective deterrent.
In June, a man in a hooded jacket and face mask used a blowtorch - in full view of customers and employees - to melt locked cases at a Walgreens outlet in Queens, New York.
He then filled a bag with products and left without paying.
Residents in Queens have also launched a petition surrounding unsafe conditions in several CVS outlets.
Some retailers are considering closing sites, with Giant mulling the closure of a Washington supermarket where theft and violence "is significant, and getting worse."
It is becoming increasingly difficult to operate under these conditions, a spokesman told AFP.
Walgreens closed five San Francisco stores in 2021 due to theft, while Walmart shuttered four Chicago outlets this year, officially due to a lack of profitability.