“Theft is a problem,” he told CNBC. “It’s a bigger problem than in the past,” he added. “If it’s not fixed over time, prices will go up and/or stores will close,” he said.
McMillon did not say during the interview how much money Walmart has lost this year due to theft. Walmart did not respond to an Insider’s request for this issue.
According to Reuters reports from 2015, the world’s largest retailer probably lost around 1%. of its income in the United States – approximately $3 billion. annually — due to thefts committed by customers and employees.
McMillon said the key to reducing theft is for Walmart to work with local law enforcement and ensure they are fully employed.
See also: Walmart fired an employee after 16 years. She received a huge compensation
The Bentonville, Arkansas-based retail giant isn’t the only retailer to raise the alarm against theft lately.
The dying assortment slashed Target’s profits by more than $400 million year-over-year. in 2022 Target expects losses to reach $600 million by the end of the fiscal year. Target CFO Michael Fiddelke made the announcement in November at a company earnings conference.
Target blamed organized crime for the shrinking assortment.
“Like other retailers, we have seen a significant increase in retail theft and organized crime in our business,” Target CEO Brian Cornell said on a conference call.
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By Ben Tobin
Translation: Mateusz Albin
