Rise in thefts worries distribution chains in the United States

Toothpaste, chocolate, deodorant and detergent: these everyday products found on the shelves of shops are increasingly under lock and key in USA given the increase in petty thefts and organized robberies, which seriously threaten some economic groups.

Walmart and Target, drugstore chains CVS and Walgreens, as well as DIY company Home Depot and shoe retailer Foot Locker are among the companies that have raised concerns about the spate of thefts, sometimes followed by violent incidents. .

“Organized gang crime, and theft in general, is a growing problem affecting many retailers,” said Lauren Hobart, CEO of Dick’s Sporting Goods. in a telephone conversation.

The impact of the thefts on the company’s inventory was “significant” and affected both second-quarter results and expectations for the rest of the year, it added.

Dick’s expects earnings per share this year to be $11.33 and $12.13, versus $12.90 to $13.80 previously estimated. In this context, shrinkage represents the difference between the volumes ordered from suppliers and the actual inventory, which is lower due to theft and damage to the premises.”In the first five months of the year our stores have seen a 120% increase in thefts involving violence or threats of violence,” said Brian Cornell, Target CEO.

– Unsustainable –

“Our teams continue to experience an unacceptable amount of shoplifting and gang crime,” Cornell said, citing a decline in second-quarter profit “well above what is sustainable in the long term.”

In 18 months, interest rates in the United States rose from almost zero to 5.50%, their highest level in 22 years, to curb inflation that in June 2022 reached 9.1%, a record in four decades. , making it difficult for a good portion of Americans to make ends meet.

According to the latest survey by the National Retail Federation (NRF), losses experienced by retailers reached $94.5 billion in 2021 ($90.8 billion in 2020).

Organized crime grew by 26.5% that year. More and more stores are installing locks on shelves and panic buttons scattered in aisles for staff to activate. Unprotected shelves are often understocked, or even empty, to limit the chances of theft.

– Torch –

The measures are not always dissuasive. A man, wearing a hood and a sanitary mask, melted the Plexiglas of a Walgreens in Queens, New York with a torch – in front of customers and employees. He then calmly filled a large bag, according to a video published by various media.

Precisely in Queens, neighbors signed a petition complaining about the insecurity in several CVS stores.

According to several media, posters placed by the company’s management ask its staff not to intervene in the event of theft or to contact the police, for their safety.

Some companies plan to close stores, such as the Giant supermarket chain in Washington, “where theft and violence are high and getting worse.” “It is increasingly difficult to operate in these conditions,” a company spokesman told AFP.

– Closures –

Walgreens closed five stores in San Francisco in 2021 for theft, and Walmart four in Chicago this year, officially for being unprofitable. ”The contraction has increased this year. I had already done it last year. It’s uneven across the country,” Walmart CFO John Rainey said in mid-August.

“We don’t want it to continue growing, obviously, because it could cause prices to rise,” he added.

But online users have reported more incidents of “sudden robberies” in which a group of criminals break into a store, take items within their reach within a few minutes and run.

One such incident occurred on August 12 at a Nordstrom store chain in Los Angeles, where about 30 masked individuals stole more than $300,000 worth of luxury items and sprayed the security guard with bear spray, according to the police. police.

Prepared with information from AFP