Major businesses/ stores across the United States have begun locking up everyday items such as toothpaste, chocolate, washing powder, and deodorant in response to a reported increase in petty theft and organized thievery as the country grapples with rising living costs. Meanwhile, some shoppers have expressed concern about the surge in organized retail thievery. According to an AFP report, major American retailers such as Walmart and Target, as well as drugstore chains CVS and Walgreens, home improvement firm Home Depot, and Dick’s Sporting Goods, are among the growing number of companies that have expressed concern about the thefts, which have included some violent incidents.
American retailers lost $94.5 billion to so-called “shrink” in 2021 across the country
They’ve also discussed how it’s impacted their recent earnings. “Organised retail crime, and theft in general, is an increasingly serious issue affecting many retailers,” said Lauren Hobart, chief executive of Dick’s, according to AFP during a conference call. She also described the impact of theft on the company’s inventory as “significant.” Target CEO Brian Cornell stated in a separate press conference, “During the first five months of this year, our stores saw a 120 percent increase in theft incidents involving violence or threats of violence.” He also mentioned how the inventory loss due to theft is much in excess of what is sustainable in the long run.
According to the National Retail Federation’s Retail Security Survey 2022, American retailers lost $94.5 billion to so-called “shrink” in 2021 across the country. In this context, shrink refers to inventory losses caused by reasons such as employee theft, shoplifting, or administrative errors. According to the report, shops will see a 26.5 percent increase in organized retail crime in 2021, and the majority of respondents believe the pandemic has increased dangers. The US Federal Reserve has announced a series of interest rate hikes, raising the rate from near zero to roughly 5.5 percent in 18 months, the highest level in 22 years.
The spike in theft has caused businesses to install transparent walls with locks on shelves
Higher interest rates have not only made it more expensive to borrow funds for larger expenditures, but they have also made it difficult for businesses to expand while American consumers have been feeling the pinch. According to AFP, the spike in theft has caused businesses to install transparent walls with locks on shelves, occasionally padlocked chains on refrigerators, and call buttons scattered throughout aisles for personnel. Due to an increase in thievery and a lack of profitability, some retailers have closed their doors. Walgreens shuttered five stores in the US city of San Francisco in 2021 because of theft.
Ann McGee, a Queens resident, told AFP that she dislikes the recent worry she experiences while shopping, which comes amid an increase in thievery. “It’s not normal to be scared” while shopping, McGee told Reuters. She has lived in the borough for over four decades and recently stated that she is so anxious about her safety that she leaves her purse and jewelry – including her wedding ring – at home when she goes shopping.
