According to Walmart (NYSE: WMT) Chief Executive Officer Doug McMillon this past Tuesday, Walmart stores throughout North America have been suffering from a dramatic uptick in thefts, which could ultimately lead to steady price increases. In some cases, the Walmart stores could actually shut down completely.
"Theft is an issue," McMillon told CNBC. "It is higher than what it has historically been. If that's not corrected over time, prices will be higher, and/or stores will close."
Although McMillon did not directly state precisely how much money has been lost throughout the year due to thefts, but it has been demonstrated from statistics that Walmart has lost about 1% of its total earnings from shoplifting. It equates to about $3 billion annually, whether it is by shoppers or employees, according to Reuters in 2015.
According to McMillon, it is important for Walmart to work closely alongside police officers to monitor these shoplifting behaviors and illegal activity.Forbes reported that the types of thefts have expanded in more recent times. At one point, it was only more expensive items that were stolen, but at this time, there are now less expensive items such as candy or makeup that are being taken from Walmart stores.
"We've got safety measures, security measures that we've put in place by store location. I think local law enforcement being staffed and being a good partner is part of that equation, and that's normally how we approach it," McMillon said in a statement.
McMillon has also said that each store location will differ in terms of how individual theft situations are handled. Other stores, like Rite Aid (NYSE: RAD), have reported similar situations in terms of shoplifting. Rite Aid's Chief Revenue Officer has suggested that Rite Aid will likely put everything behind glass from now on, so as to see who truly wants to make a purchase from the store more easily. CEO of Target (NYSE: TGT), Brian Cornell, has said in a statement that he has seen a "significant increase in organized retail crime" throughout the duration of the past 12-18 months.