Retail Chains Are Using Theft To Mask Other Issues, Report Says: CNN
Crime Spree, Retailers Are Actually Overstating the Extent of Theft, Report Says, CNN, Oct. 27, 2023. Target, Walgreens, Costco.
New York (CNN)- Retailers say theft is exploding, and some data from retailers along with numerous videos of violent store robberies and looting seem to support the claim. But some retail analysts and researchers, bolstered by local crime statistics, say stores may be overstating the extent and impact of theft.
Why? It's a useful deflection, camouflaging weak demand, mismanagement and other issues denting business right now. And it forces lawmakers to respond. Across the country, the "actual increase in theft" at stores does not "correspond to the increase in company commentary and actions" on theft, according to a new report by retail analysts at William Blair.
"Retailers are increasingly vocal on the subject, in part to draw out government action," the analysts wrote. To be sure, theft is impacting retailers much more than it was before the pandemic. That's because theft has gotten more visible and more violent, retailers say, and has put employee safety at risk in some cases.
But a host of other issues, from inflation to rising costs, are impacting retailers too. Theft is just one of many structural issues chains are facing, most notably the shift to online shopping and overexpansion of brick-and-mortar retail. "Companies are also likely to use the opportunity to draw attention away" from lower profit margins due to higher promotions and poor inventory planning...
https://www.cnn.com/2023/10/27/business/crime-spree-retailers-are-actually-overstating-the-extent-of-theft-report-says
