Walmart CEO: ‘Historically’ High Thefts Could Trigger Price Hikes

Walmart’s CEO says the retailer could raise prices if authorities can’t curb “historically” high shoplifting.

Speaking to CNBC Tuesday (Dec. 6), Doug McMillon said theft at the company’s stores is “higher than what it has historically been,” joining a chorus of retail voices warning against a nationwide rise in shoplifting.

He added that Walmart has its own security measures in place and routinely works with police to stem the problem.

However, McMillon warned that “prices will be higher and/or stores will close” if law enforcement isn’t stricter in prosecuting theft.

PYMNTS has reached out to Walmart seeking exact figures for the increase in the number of thefts the company has seen.

However, a recent report from the National Retail Federation shows that last year saw a 26.5% increase in “organized retail crime.”

This apparent crime wave has led stores to deploy various new anti-theft measures while also balancing these measures with the need to make their locations inviting to consumers.

The deterrents include employing surveillance systems, placing more items behind glass, using steel cables to tether products to shelves and displaying empty boxes that shoppers can bring to a cashier to receive the item.

“It’s a triage-type scenario,” Scott Glenn, Home Depot vice president of asset protection, said earlier this year after the company began locking up some of its products. “It’s ‘Stop the bleeding and give yourself some time.’”

He acknowledged that customers don’t like seeing products locked away but argued that when a high-theft item is locked up, sales increase as the store stays in stock more consistently.

These moves were a response to headline-grabbing “smash and grab” incidents in which large numbers of thieves have rushed into a store and stolen items, leading the CEOs of companies like Best Buy, Target, and AutoZone to write to Washington for help.

“While we constantly invest in people, policies, and innovative technology to deter theft, criminals are capitalizing on the anonymity of the internet and the failure of certain marketplaces to verify their sellers,” the Retail Industry Leaders Association told Congressional leaders.