Walmart says shoplifting could lead to higher prices and closures as losses from organized retail theft mount

Calling a store associate… to unlock the fancy razors in the glass case. Yesterday, Walmart CEO Doug McMillon said rising theft could lead to price hikes and store closures. America’s largest retailer is dealing with a surge in shoplifting that’s “higher than what it has historically been,” McMillon added. He said a lax approach from local prosecutors could lead to closures and higher prices if the problem persists.

Walmart isn’t the only one… Organized retail theft (think: criminal rings who steal large volumes of products only to resell them) is on the rise. Last year nearly 70% of retailers reported a spike, which contributed to losses of up to $69B. It can be hard to imagine that shoplifting could significantly affect multibillion-dollar corporate giants, but the scale has become so great it’s hitting their bottom line — and losing them hundreds of millions.

• Target is also dealing with an increase in stealing, which it says is mostly organized retail theft. Recently, Target’s CFO said shoplifting at its stores has jumped 50% from last year. So far this year, losses from theft have dealt a $400M blow to its profit margins.
• Rite Aid said it lost $5M last quarter from theft at its NYC locations, and last year Best Buy’s CEO said that rising theft had been “traumatizing” for workers.