Retail theft and store closings

[LateToFIRE]

I blame the "shrinkage" issues the drug store retailers are having on their own short-sighted race to the bottom. In the name of cost-cutting, they have reduced staff and forced customers into a self-service check out model. Guess what? That makes leaving the store without passing several check-out counters, cashiers, etc, with a truckload of merch tucked under your coat rather easy. There is usually one highly unmotivated employee tasked with both assisting customers with the robo-check-out machines and watching the door. I get that there are other forces at play, such as organized theft, but they have made the environment ripe for the picking. In reaction, they now treat us all like would be criminals and lock everything up, making shopping a total downer. They are basically in a death-spiral implementing one bad idea to cure other bad ideas.

EDIT:

FWIW, I am describing big chain drug stores located in a very well-heeled big city neighborhood where homes typically sell for millions. Doesn't mean there isn't theft, but we're not talking gangs roving the streets, unless gangs of stroller moms (and stroller nannies) count.

 

[Out-to-Lunch]

Remember Dick Tracy's Crimestopper tips? I remember one from the late 1960's or early 1970s that suggested that clothing stores should hang all of their garments with the hangers alternating direction. That way, a gang of thieves couldn't just grab a large number of garments off the rack at the same time.

Perhaps this is not an entirely new problem?

 

[LateToFIRE]

By the way, I worked retail part-time in high school, granted that was a very long time ago, but shrinkage was a big deal back then too. What I can tell you from that experience is that the organized employee theft happening on the loading dock and in the stock rooms far exceeded the damage shoplifters could do by many orders of magnitude.

P.S. They'd give us random lie-detector tests from time to time - absolutely useless.

 

[ivinsfan]

Well that's a different take... Can you speak towards the type of environments all 9 of these stores are geographically located in - as in, anything in common with those environments? Inflation is identified by BLS charts to specifically be worse in those particular areas? I'm struggling to identify what inflation has to do with the situation of these closings.

Do you think companies deal with any of these problems with no cost? They have cost which adds to the sticker price, which is why Target decided to close certain stores. Now if you live in an area affected by a Target closing you have fewer options to shop for lower priced items such as store brands. Yes they can be shipped but that can cost extra as well. so your costs are now inflated.

 

[Car-Guy]

One of the workers in our small town Walmart told us they are losing 1/2m a year in theft from their store. That's ~$1400 avg per day. Now this isn't one of the giant Walmart's but just a small town version of the store. They call it a super Walmart but it ain't. Anyway, I don't see how 1/2m walks out the "front door". They have the usual RFID alarm system at the exit, cameras everywhere and often have an employee spot checking shoppers receipts as they leave. My guess is a lot of the loss it going out the back doors. Regardless, if I were to see it, I'd report it. After all, it comes back as higher prices to me. Sorry lowlifes!

 

[badatmath]

Who wants to shop at a store with everything under lock and key. It would take forever.

Surely you encounter this? I go to stores that aren't target that have this. . .at least for high value products.

Lots of stores do watch it walk out the door. I have talked to employees that say they are told not to stop people.

There was a huge deal with people stealing carts of laundry detergent some years back . . .

 

[ivinsfan]

Car-guy..do you know how many ways people can steal stuff. I would guess more then a little is gone thru the self checkouts. I'm paranoid about triple checking to make sure everything in my order scans. It would be simple if you weren't honest nobody really watches at the self check. RFID is on the bigger items, not the small ones. Honestly it kind of bugs me that you want to blame the people that work there. Working at Walmart isn't an easy job and I appreciate the people that work there.

 

[ivinsfan]

Surely you encounter this? I go to stores that aren't target that have this. . .at least for high value products.

Lots of stores do watch it walk out the door. I have talked to employees that say they are told not to stop people.

There was a huge deal with people stealing carts of laundry detergent some years back . . .

High value items? Yes Toothpaste ? No

 

[Car-Guy]

Car-guy..do you know how many ways people can steal stuff. I would guess more then a little is gone thru the self checkouts. .

I'd have no idea. I've never stole anything, expect maybe a ballpoint pen from work. But I used that for business work at home.

 

[Sojourner]

Lots of stores do watch it walk out the door. I have talked to employees that say they are told not to stop people.

That's interesting, since I was recently stopped for walking out (innocently, absent-mindedly) of a grocery store with a watermelon that I forgot to pay for. The cashier actually came running out into the parking lot and chased me down as I was almost getting to my car. I had to go all the way back into the store and pay for it separately. This was for a $3 watermelon. I suppose it very much depends on the location and the specific store.

 

[JoeWras]

Costco.

Now they can definitely control a lot of the shrinkage by the membership card entry model. I'm sure they have it both through customers and employees, but surely this extra level of control helps.

My niece works there, going on 15 years. It is a good place to work. I think a lot of workers know that and it helps keep them on the level.

There used to also be catalog places like Service Merchandise. They had a model that pretty much confined shrinkage to the back warehouse. Alas, the concept is now dead and SM is no more, along with the others like it.

 

[braumeister]

I saw a very interesting approach this year in Norway. Small grocery stores in the downtown part of towns were all set up this way. Cameras all over, and signs said the area was continuously monitored. You walk around and gather the things you want to buy, then go into the self-checkout section (there were no attended checkouts).

You check your items out on the scanner as usual, and get a receipt with a bar code on it.
Now you are unable to leave the self-checkout section until you show the bar code on your receipt to another scanning device. If all is well, the gate opens up to let you out.

Certainly not perfect, but a great way to operate a small store with probably just one person in the back room watching the camera feeds.

 

[CardsFan]

That's interesting, since I was recently stopped for walking out (innocently, absent-mindedly) of a grocery store with a watermelon that I forgot to pay for. The cashier actually came running out into the parking lot and chased me down as I was almost getting to my car. I had to go all the way back into the store and pay for it separately. This was for a $3 watermelon. I suppose it very much depends on the location and the specific store.

JMHO, but I think the staff is much more likely to confront the absent minded old guy (like me) than someone that is clearly stealing.

Several months ago I was at Walmart, and forgot to pay. I literally scanned the stuff, got distracted, and then just started waking out. I was, legitimately, confronted. I was embarrassed beyond belief. But the staff was VERY subtle. Just came to me and said "Sir, did you forget to pay?". I wonder if I was 25 and built like a linebacker if they would have said anything.

 

[Sunset]

I'm sure it's location specific, and company specific, and crime violence specific.

What I have seen in the news:
Group of 15 of all in masks and hoodies, some with handguns, run in grab some flat screens and run out. No store clerk wants to die for $15/hr.

Crime like this happens, little Johnny brings home a new flat screen and then everyone complains about the disinvestment in neighborhoods...

There is a reason some areas have no stores, being robbed at gun point a few times a month really kills the desire to work in the store.

 

[Sunset]

Costco.

Now they can definitely control a lot of the shrinkage by the membership card entry model. I'm sure they have it both through customers and employees, but surely this extra level of control helps.

.....

I was in Costco recently, I'll be they get hit soon and you see it on the news.
The guy checking membership is not going to stop 10->20 folks in hoodies and masks from running in and grabbing the 85" TV's right by the entrance !!

Only reason it probably hasn't happened yet is the parking lot is packed all the time

 

[badatmath]

High value items? Yes Toothpaste ? No

I see razors and makeup locked up and I don't consider those high value. IDK how much baby forumla costs but it is locked up as well as cigarettes, alcohol, etc.

Also Walmart locks up printer cartridges now IDK if they always did cause I usually get them online.

Not all stores but enough.

 

[badatmath]

That's interesting, since I was recently stopped for walking out (innocently, absent-mindedly) of a grocery store with a watermelon that I forgot to pay for. The cashier actually came running out into the parking lot and chased me down as I was almost getting to my car. I had to go all the way back into the store and pay for it separately. This was for a $3 watermelon. I suppose it very much depends on the location and the specific store.

Yes, I think so because I saw a store hassling a lady if she had paid for her water. (IDK if she did). But one of the home improvement store employees told me he was told to let people walk off with a chain saw . . .

I assume some stores are afraid the employees will be hurt or worse and they will be sued, but it may come down to how easy it is to prosecute too IDK.

 

[badatmath]

Whenever I see all the products locked up I wonder why they don't realize people will just get them online but them maybe they want that.

 

[aja8888]

I was in Costco recently, I'll be they get hit soon and you see it on the news.
The guy checking membership is not going to stop 10->20 folks in hoodies and masks from running in and grabbing the 85" TV's right by the entrance !!

Only reason it probably hasn't happened yet is the parking lot is packed all the time

The bad guys will have to get to Costco way before 10 AM to get the close parking spots! They will need their handicap stickers for their cars too!

 

[explanade]

This is a paywalled story but I heard it discussed in one of The Economist podcasts this week.

https://www.economist.com/britain/2023/09/22/why-shoplifting-is-rising-in-britain

There are organized retail theft rings in the UK and they target specific items, which can apparently be flipped for money.

No mention of liberal DAs letting petty crimes go over there.


It's more likely that modern communications allow criminals to be more organized so they coordinate these "flash mob" rush to steal merchandise.

 

[bobbyr]

The people doing the stealing are young able bodies people. They do not appear poor and hungry. It is retail organized theft and it takes place especially in localities that no longer prosecute shoplifting.

To say stores have a provision for shoplifting is true, but such provisions were never meant to cover retail organized theft.

If localities cultivate lawlessness it won't be just retailers that leave.

++

 

[Affinity4Investing]

Do you think companies deal with any of these problems with no cost? They have cost which adds to the sticker price, which is why Target decided to close certain stores. Now if you live in an area affected by a Target closing you have fewer options to shop for lower priced items such as store brands. Yes they can be shipped but that can cost extra as well. so your costs are now inflated.

You missed the point by a country mile. Read my other post with the ACTUAL press release from TGT. Not a word about inflation... Because it's not the cause. Take it from their mouth, not mine. Granted, there are plenty of other issues with TGT that have caused their stock/business to tank (self-inflicted). Look at a 1yr, 3yr, 5yr set of charts.

Executive decisions (and the lack thereof) have consequences. I cheer at every new 52wk low with how I'm positioned.

 

[Fermion]

This one is hilarious. A guy is stealing a 70 inch tv from Target. The employees can't do anything. Fun times!

 

[ivinsfan]

I'd have no idea. I've never stole anything, expect maybe a ballpoint pen from work. But I used that for business work at home.

Right so we don't know who is lifting stuff be it shoppers or others.

 

[ivinsfan]

You missed the point by a country mile. Read my other post with the ACTUAL press release from TGT. Not a word about inflation... Because it's not the cause. Take it from their mouth, not mine. Granted, there are plenty of other issues with TGT that have caused their stock/business to tank (self-inflicted). Look at a 1yr, 3yr, 5yr set of charts.

Executive decisions (and the lack thereof) have consequences. I cheer at every new 52wk low with how I'm positioned.

That's nice for you....at this point I have no idea what you are talking about...have a nice day.