HOME DEPOT IS SELLING POWER TOOLS THAT REQUIRE ACTIVATION IN-STORE

[douglas9]

Shoplifting is a major problem for many brick-and-mortar retail stores, and it seems that stealing and then selling power tools is a lucrative enterprise for some criminals. To combat this, Home Depot is starting to sell power tools that will not work unless they are activated at the checkout counter.

According to a 2020 survey in the US, “organized retail crime” cost retailers $719,548 per $1 billion dollars in revenue. One thief was recently arrested after stealing more than $17,000 worth of power tools from Home Depot. While many stores put high value items in locked display cases, Home Depot felt that this tactic would negatively affect sales, so they partnered with suppliers to add an internal kill switch. Although persistent criminals might find a way to deactivate this feature, it sounds like Home Depot is hoping that will be just enough trouble to convince most criminals to look for easier targets somewhere else.


https://hackaday.com/2021/08/02/home-depot-is-selling-power-tools-that-require-activation-in-store/#comments

[SWBTATTReg]

1. Good. Shoplifting is a major problem at HDepot. My SO works there, tells me of the ...

constant battle they have w/ shoplifters and the efforts these shoplifters go through, to get a five-fingered discount.

[Clash City Rocker]

2. Stores are hiring less staff these days

It’s a trend that’s been going on for years. It stands to reason that less staff means fewer people who can catch you shoplifting.

In-store activation sounds like a smart solution to the problem.

[Merlot]

6. So products have kill switches - gee, what could go wrong...

well, for starters, product could be held for randsome.

[pwb]

3. They need to talk to trump about losses being tax deductible.

Oh yeah big corporations don't pay taxes so losses don't matter on their books. The orange at Home Depot is too loud. Give me Lowes blue any day.

[Hoyt]

4. Home Depot paid over $4 Billion in taxes for 2020, up 18% over 2019. Just saying.

https://ir.homedepot.com/~/media/Files/H/HomeDepot-IR/2021_Proxy_Updates/2020_AR_IR_Site_Combined_Document_v2.pdf

[pwb]

18. Property and school taxes yes.

How much federal tax? Your link is very long and I am not that curious.

[Hoyt]

20. Yeah, I know, it's a pain posting facts. BTW: The $4 Billion was Income Taxes.

[pwb]

22. Individuals pay income taxes. But good idea

a corporate income tax.

[Hoyt]

23. LMAO. Corporations pay income taxes too. Facts are important.

[pwb]

24. Right corporations are people.

Revenue minus expenses equals profits. Income comes from wages and salary. Facts? Go Lowes.

[Merlot]

5. "cost retailers $719,548 per $1 billion dollars"

Can someone do the math to figure out the percentage of loss in the above statement? I'm no math wiz, but that doesn't look like a large percentage. Maybe if stores would actually hire people to wander the deserted aisles there'd be less theft.

Shoplifting is just the latest media driven enragement.

[whopis01]

7. It is a tiny percentage. 0.072%

Basically is 0.72 million $ / 1000 million $

With that said, it is measuring loss against revenue, not loss against profit.
So if they are operating at a very low margin, it could be a more significant loss.

[AZSkiffyGeek]

8. Stealing is okay because Home Depot is rich!

Sounds like a good moral argument. I’m waiting for the explanation that they really need those power tools. Like is always made about people stealing baby formula and diapers to sell on the black market.

[Merlot]

9. No, stealing is not ok. Home Depot has barely any staff so that they have bigger profits for

shareholders. The percentage they loose to theft is much smaller that the profit they make by eliminating employees. This is a problem of HD's own making, and they choose to solve it by using more automation.

Shoplifting is just the latest "outrage" tool used by the media to spread fear and anger.

[AZSkiffyGeek]

10. You sure seem invested in blaming everyone except the thiefs

Home Depot... The media... Automation
Maybe try blaming criminals. Because if they weren't actually breaking the law, maybe these things wouldn't happen.

[Tomconroy]

11. Back in the old days, when I represented tiny little criminals

We would get a lot of cases from Home Depot. They insisted on prosecuting shoplifters. We never, ever got a case from the Loews across the street though.
There's a lesson there, for those who want to learn it.

[AZSkiffyGeek]

12. So, steal from Lowes?

WTF is going on here? Did you tell your clients to go across the street for their shoplifting needs? Did you defend them because you thought it was wrong they were being punished for breaking the law?

[Tomconroy]

13. I never told them that. You're the one who leaped to

Conclusions.
PS I defended them because that was my job. Just like someone will defend you when you get into trouble.

[AZSkiffyGeek]

15. So what was your point in bringing up that Lowe's doesn't prosecute?

Sounds like some good lawyerly advise there.

[Tomconroy]

16. Stores have different ways of handling the issue

Of theft. Some are very concerned about their employees
getting involved in incidents that could lead to serious injury.
That's a lesson one could learn.

[underpants]

14. Drug addicts called Walmart "The bank"

Friend of a friend went through rehab years ago ago. One thing they told me about their meetings was that if they needed cash they just went to Walmart. Pickup some lawn chairs on the way in - no questions return policy - walk out with cash. No receipt needed at the time. They also did the same with things inside the store.

[Tomconroy]

17. Walmart was kind of tough where I was.

People would get arrested, dispose of their cases and a few months later they would get a letter from Walmart saying Walmart was imposing a 'civil fine' of $150 or so. Not sure if they still do that.
Obviously this sort of info is shocking to some, but those with a professional interest are well aware of it.

[Hassin Bin Sober]

25. Yep. They do.

My nephew was with some kids goofing off in a Walmart and one of them stole a pocket knife. Everyone’s parents got a bill for $250 or $300 bucks. It was like five or six kids.

[Tomconroy]

26. No idea how they would go about enforcing their 'fine' though.

[Hassin Bin Sober]

28. They have attorneys who live in court.

It’s civil case that only costs the filing fee.

Don’t show up and get a judgment PLUS attorney fees. Then a collection on your credit.

[Tomconroy]

29. But what actual loss could they show other than the value of a pocket knife?

I didn't know of any law that gave them the power to impose ',fines'.
To quote James Thurber,: I say it's spinach, and I say to hell with it.

[Hassin Bin Sober]

30. The tort of theft.

If I remember correctly, the civil penalties are set by statute at a multiple of the merchandise OR a minimum. They go after you for the minimum.

[Tomconroy]

31. You may be right in your jurisdiction. Not in mine.

PS: I did look around the internet and apparently a merchant's lobby has gotten some states to pass the laws you describe. The practical consensus among people who claim to be lawyers on the internet is: Walmart ain't going to do nothing but write a letter.

[Mary in S. Carolina]

19. Hire more people

I have not been to Home Depot for years due to their beliefs, but I was in a hurry and Home Depot was the nearest store; the store was packed and only 2 check out lanes open. I turned around and drove 3 miles to Lowes, the store was packed and all the check out lanes were open. Go to Lowes, much better customer service, Home Depot short staffs and uses the savings to buy off politicians - just my opinion.

[Hassin Bin Sober]

27. I can't stand Home Depot either but they are located everywhere here.

Lowe’s is a long drive for me.

Menards is nearby. They are just as bad politics wise. Just not as vocal. Returns are a pain in the ass and prices are higher. They supposedly give you 11% back on purchases but I have yet to receive a single check.

Home Depot matches the 11% if you apply online. I have a wallet full of rebate gift cards (I’m renovating a house).

Lowe’s has a nice tool section and is definitely better run.

Menards is really well run but their tools suck - if they can sell a knock off of anything they do it.


Yeah, Home Depot definitely short staffs. And they are obviously miserable and poorly treated. They hide whenever they can

[Baked Potato]

21. Next will be "subscription" tool usage. No pay, dead tool. Nt

[flying_wahini]

32. If you do even a little work around the house it pays to get a 'business' pro card from Lowes

Because they will deliver a single item or a truckload for $20. Great deal.