Wal-Mart (WMT-US) CEO Doug McMillon said on Tuesday (6th) that Wal-Mart across the US is facing increasing cases of shoplifting. If the problem continues, it could lead to price increases or even closed shops.
“Theft is a big problem and it is higher than historical levels,” he said. “We’ve put security measures in place based on the location of the store, and I think there has to be good law enforcement and police-civilian cooperation on the ground, and that’s how we usually deal with it. “
Walmart isn’t the only major retailer that gets robbed frequently. Michael Fiddelke, Chief Financial Officer of Target (TGT-US), said last month that shoplifting has increased by about 50% year over year, with more than $400 million lost as a result.
When asked how local jurisdictions deal with shoplifting, McMillon said lax prosecution could lead to price increases and even store closings.
“If the situation doesn’t improve after a while, we will raise prices, or even close shops.”
“It’s really a flurry of every city, every location, and store managers have to work with local law enforcement, and we’ve developed a good relationship in most cases,” he added.
