Wal-Mart Struggling With Rising Loss From Shoplifting and Employee Theft

[superconnected]

Source: Associated Press

Theft Rising at U.S. Wal-Mart Stores
Wednesday June 13, 6:40 pm ET
By Anne D'Innocenzio and Marcus Kabel, AP Business Writers
Wal-Mart Struggling With Rising Loss From Shoplifting and Employee Theft at Its U.S. Stores


NEW YORK (AP) -- Shoppers at Wal-Mart stores across America are loading carts with merchandise -- maybe a flat-screen TV, a few DVDs and a six-pack of beer -- and strolling out without paying. Employees also are helping themselves to goods they haven't paid for.

The world's largest retailer is saying little about these kinds of thefts, but its recent public disclosures that it is experiencing an increase in so-called shrinkage at its U.S. stores suggests that inventory losses due to shoplifting, employee theft, paperwork errors and supplier fraud could be worsening.

The hit is likely to rise to more than $3 billion this year for Wal-Mart Stores Inc., which generated sales of $348.6 billion last year, according to retail consultant Burt Flickinger III.

Flickinger and other analysts say the increase in theft may be tied to Wal-Mart's highly publicized decision last year to no longer prosecute minor cases of shoplifting in order to focus on organized shoplifting rings. Former employees also say staffing levels, including security personnel, have been reduced, making it easier for theft to occur. And a union-backed group critical of the retailer's personnel policies contends general worker discontent is playing a role.



Read more: http://biz.yahoo.com/ap/070613/wal_mart_theft.html?.v=11

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Poor poor Walmart.

[BlackHawk706867]

1. Gotta get a decent wage somehow! eom ww

[durrrty libby]

3. Heaven forbid someone go to school and learn a fucking trade

[Sen. Walter Sobchak]

14. right... lets see them outsource plumbers!

[superconnected]

16. Not everyone has the luxury of college, and often highschool.

"if you suffer your people to be ill-educated, and their manners to be
corrupted from their infancy, and then punish them for those crimes to
which their first education disposed them, what else is to be concluded
from this but that you first make thieves and then punish them?" - Thomas Moore Utopia

[durrrty libby]

29. Ok with that thinking they WILL end up in prison

Enablers are not good people. They really suck

[msanthrope]

50. Forgive Me...St. or Sir Thomas More, not Thomas Moore.

Sorry. Being a bit OCD. But I think Raphael Hythloday would have gently reminded you of the same.

More is my favorite Catholic martyr.

[rpannier]

2. Pay people a liveable wage and they won't steal

It's basic economics.

[durrrty libby]

5. Not true at all

Some just like to steal

[wake.up.america]

6. I agree - stealing is not justified by complaining of low wages...

although I would be interested in looking at such stats from higher paying stores.

[LiberalFighter]

38. If their merchandise prices are lower than everyone else

then why would people steal? For the customers they must figure the store is an easy mark.
The workers must not get paid enough even with their employee discount.

[DBoon]

25. Treat your employees with respect and far fewer will steal

Treat people like crap and they will treat you likewise

Interesting that we hear about Walmart having these problems and not Costco.

[gravity]

8. Because people can't live without new TVs and DVDs?

If they are stealing food, it's one thing, but I believe the majority of folks steal just because they can get away with.

[durrrty libby]

9. Finally.....a couple of people who don't condone theft

There is another a larger thread on this and I am blown away by the enablers of crime


I always thought dems took the high road and had integrity

These threads are eye-opening and disheartening



:hurts: :hurts: :hurts: :hurts:

[Name removed]

15. Deleted sub-thread

Sub-thread removed by moderator. Click here to review the message board rules.

[ShortnFiery]

51. Oh hell, nevermind. :-) n/t

[slampoet]

55. When you need to steal to eat you steal one tv a month and sell it.......

....Otherwise you'd need to steal 30 times a month just to get TV dinners for your family.


Whenever I hear a comment like this I know that the person saying it doesn't really understand what it is to struggle so bad that it doesn't matter what side of the law you are on.

OF COURSE nobody is stealing Ramen Noodles. You can't risk 90 days in jail every day for the rest of your life....

Also you can't buy gas with food.
You can't buy tires with food.
You can't pay rent with food.
You can't pay for heat, phone, electricity with food.
You can't get on the bus with food.
My doctor doesn't take food for barter does yours?

No one asks why Neil Bush isn't stealing Ramen Noodles. They just know why.

Stop using republican arguments to defend thou shalt not steal.

There are plenty of thieves who wear a suit and tie when they steal. Be a real democrat, please.

[Tansy_Gold]

60. Aaaah, someone who understands.

Thanks, slampoet!

:thumbsup:

[emilyg]

17. Crap

You either have a steal mentality or you don't.

[TexasLady]

27. I have 4 kids

If we went hungry, or couldnt pay the mortgage, which is getting too close for comfort right now..I can see myself getting that mentality pretty quick. Stealing TVs and selling them could pay for a couple bills to keep the family going.

I dont know, I dont teach or condone stealing, but if things got bad enough, I dont think I could handle my kids complaining of hunger, or heat from the Tx sun, or several other things that money can buy.
Does this make me a crappy mom? Thinking about what might have to happen, if it came right down to it?

[dysfunctional press]

34. you mean the enron execs weren't being paid a livable wage?

nt

[KurtNYC]

43. didn't work for Winona Ryder n/t

[Tansy_Gold]

61. People steal for MANY reasons

Some have mental illnesses that prevent them from understanding that what they do is wrong, or that it is even stealing at all.

Some steal because the challenge of "getting away with something" gives them a kind of high.

Some steal out of revenge, to get even, or because they think they have a right to whatever it is they're stealing.

Some steal because they want things but don't want to pay for them.

Some steal because they want things but can't afford to pay for them.

I've worked at Wal-Mart and I can tell you that even ten years ago, they were reluctant to prosecute shoplifters. As a cashier, I caught a number of people trying to walk out with tvs they said they had "already" paid for but had no receipt, and only ONCE did management stop that person and recover the loot. I watched several fellow employees get nabbed, too, for putting stuff in their pockets, for marking items way down for themselves or friends, for lifting cash right out of the till. In some cases, the act was so stupid, so blatant, and so easily detected that the rest of us wondered how the thief could possibly have thought he/she would get away with it. In at least two cases, the thief was a manager, so you'd think they were intelligent enough and well-paid enough not to do it, but there you go: they did it anyway. Who knows why????

:shrug:

Tansy Gold, former walmartyr

[Bluestar]

4. So, $3 Billion is about 1% of $348 Billion (is my math correct?)

This is about average (I think it is even low) for shrinkage in a retail operation if I remember correctly. So what is the big fat deal? Is Wal*Mart above this necessary evil of the retail industry? Or have they cut their margins so thin that they can't cover this? Sounds like poor business practice to me.

[gravity]

7. $348 Billion is their revenue

Their proft margin after taxes is about 3% leaving them with *only* $11 Billion profits.

[Bluestar]

54. Shrinkage is factored into the revenue number

At least that's what good business people do.

[Sen. Walter Sobchak]

10. Walmart security is a joke,

Funny, I usually get a full going over by the 90 yearold biddy at the front door. Although I can't imagine any of them giving chase if I told them to fuck off and just walked out.

[Pugee]

11. I've seen teens just walk off with the speaker blaring. The older adults ignore them.

[Sen. Walter Sobchak]

13. I guess I just don't look that threatening,

[underpants]

56. "The Bank" as I hear junkies talk about it

friend of a friend who knew someone in rehab...

Apparently all that stuff sitting out in front of Walmart or really anything is just waiting to be cashed in on. From this third party source I heard this quite funny story about how junkies who need money make their way to Walmart, pick up item X, and take it to the "no questions asked" return customer assistance desk walking out with a free refund (plus tax).

THE BANK

[Voltaire99]

12. Hilarious!

Walmart's famous low prices know no bottom. LOL!

And as for the Keystone Kops in this thread, your obeisance before the world's most evil corporation is amusing, too. Why don't you volunteer your time down at the local Shitmart to help stop this scourge of lawlessness with your billionaire-friendly, pro-slavery morality?

I'm sure the Waltons will applaud your work, kapos!

[Binka]

57. LOVE IT! Post Of The Day! n/t

[Name removed]

18. Deleted message

Message removed by moderator. Click here to review the message board rules.

[yardwork]

19. It sounds like Walmart gets the customers they deserve.

[ryanmuegge]

20. Payback for indirectly allowing American jobs to be stolen.

And all of those lobbyists and think tanks funded in part by the Walton pricks that are working around the clock to have our tax money given back to them.

No sympathy for the oppressors

[Dark]

21. Poetic irony: Walmart steals business from small businesses

Walmart's employees steal merchandise from Walmart

Not condoning it, but not condemning it either.

[earth mom]

22. Even though I want to say this is all about Karma-it's really about our poor economy.

Things are BAD and no one wants to admit it. :(

[Auggie]

23. $3 billion is a drop in the bucket when you sell $348 billion.

Probably cheaper than hiring additional security.

[bemildred]

24. I don't care. No more WalMart works fine for me. nt

[The Magistrate]

26. There Is Something Of The Biter Bit About It, Sir

[bemildred]

28. I just don't see why I should care a fig about it.

If WalMart was some lion of ethics and morality and social responsibility, I would feel different. But if you are going to go with social darwinism, it ought to apply to corporations and trust fund recipients too.

[The Magistrate]

30. Indeed, Sir

These people simply do in retail what the payroll department does in wholesale: thieves all, on every end of this situation....

[DBoon]

31. corporate ethics flow from the top down

the people at the bottom of an organization are amazingly skilled at figuring out what REALLY matters to the big bosses, and act accordingly.

A lack of ethics is contagious, and usually spreads down the pay scale.

[The Magistrate]

32. Quite True, Mr. Boone

As the saying goes, a fish rots from the head down....

[northzax]

45. yeah, I feel the same way when loose women get raped

if they were living good virtuous lives, it wouldn't have happened, so why should we care?

[bemildred]

47. Well, it's more like rapers getting raped.

Equating WalMart with honest sexual entrepreneurs and enthusiasts is a bit of a stretch. And generally I consider violence a much more important issue than crimes against property. And generally I consider crimes against personal property much more important than crimes against corporate property. People are much more important than corporations, in my view. WalMart is a dishonest and exploitative enterprise, why should I care if it is subject to its own methods? As I said, if it was an honest and ethical contributor to the public good, I would feel differently about it. Most likely its employees would feel differently about it too, which is sort of the whole point. They don't give a shit about their employees, and their employees don't give a shit about them. What could be fairer that that?

[northzax]

52. no, you are saying that the victim's action matter

and qualify a wrong. If you rob someone who, through their actions, 'deserves it' then it's something to be celebrated. If so, this should apply across the board. if that's what you believe, then fine, but don't pretend you aren't blaming the victim.

you can argue that WalMart is a 'dishonest and exploitative' enterprise all you want, doesn't justify stealing from them. sorry, simply doesn't wash with me. not to mention the fact that it simply doesn't add up, if you look at the numbers. Yes, Costco, which has a completly different business model, has very low shrinkage (.2%) but if you have ever been into a Costco, you know why, the store is hard to get out of, there is one smaller door, and several checks. plus, it's simply harder to steal bulk items. Target, Sears, JC Penny, Nordstrom's, Safeway, Giant, Macy's, GAP, Banana republic, Williams Sonoma, any of the big chains where stuff isn't nailed down has a shrinkage rate roughly the same as WalMarts (the national average is 1.54-1.67% of gross sales, WalMart is well below that) nationally, 47% of shrinkage is employee theft, according to the 2004 National Retail Security Survey. WalMart actually loses LESS than your average retail store. in fact, in Western Europe, where your average clerk is treated better than in the US, shrinkage is STILL 1.41%. plus, as the article said, your legal exposure for stealing something from WalMart is almost nil, they have announced publically that they won't prosecute you. People steal, it's a fact of life. and how happy they are in their jobs is almost meaningless, how good their employer is to them is almost meaningless as well. given the opportunity, people steal. they steal from the rich and cruel, and from the poor and kind. (and of course, from the poor and cruel and rich and kind as well)

i do like your basic premise though, which is that because my boss is an asshole I am justified in stealing from him. wonder how that will fly in court?

[bemildred]

53. Don't tell me what I am saying.

I said what I meant, the fact that it doesn't "wash" with you doesn't mean shit to me, and your twisted attempts to reinterpret it to suit yourself doesn't "wash" with me. The fact that some people will steal no matter what you do doesn't mean I have to sympathize with corporate weasels like WalMart because its employees don't care much about "wastage". I don't see why you think pointing out that some people will steal is a defense against the observation that WalMart is run by shitheads and I don't sympathize with their problems.

[Blue_Tires]

33. eh...you could pull up trucks to rob everything in a wal-mart top to bottom

and you'd be ahead about what? a grand or two?? probably costs more to rent the trucks then you'd get for the cheap loot you'd steal

lol

[Joe Bacon]

35. Boy am I glad I shop at COSTCO

http://www.costco.com

COSTCO has class, unlike WhoreMart!

[Orsino]

36. Treat your emplyees like criminals 24/7, and they'll act like them.

And if you've experienced "customer service" at Wal-Mart, you won't be surprised that their inventory security also sucks. Obsess over more-with-less, and pretty soon less is all you'll have.

[raccoon]

37. Lots of well-paid employees "pilfer" things, I bet. May be office supplies

or something else, not out of need. Not that I'm condoning it, but it does happen.

Not to mention the thieves at the top. :puke:

[superconnected]

39. The biggest thieves are millionaires.

Look at the bushys.

The people I've known who have been theives have always been well to do.

I don't know street people though so who knows what poor people do. I would think most would be honest.

There isn't really a justification for stealing, imo, unless it's food, and then it better be for a child. I'll buy a sob story.

I just still have a hard time feeling for walmart. Isn't that like Haliburtion claiming theyre having problems with corrupt employees stealing even though they're corrupt deals are ripping us off for billions.

[ShortnFiery]

49. It gets worse - when employees are being treated like dirt.

There's always employees who will steal no matter what. However, if you are living from hand to mouth with low pay and no health care, some of the more HONEST employees will "slip over the edge."

We can NOT know what we would do if we were living in abject poverty. I hate to think of it, but I too would be MUCH less than an "ideal employee" if caught in such dire financial circumstances. :shrug:

[bighughdiehl]

40. If the corporatist hypocrites applied....

The same weird, unrealistic Social Darwinist standard to the corpos that they do to individuals(anything that happens to you is somehow your fault), then Wal-Mart is simply unfit. Fuck 'em. And as someone already mentioned, corporate ethics flow from the top-down. I know people that have been forced to work off the clock there. That is stealing. Fuck 'em-the bloated hypocrites. I haven't shopped there in a long time. There are other ways to get (sometimes better) goods cheaply. They can go to hell.

[Commie Pinko Dirtbag]

41. Does failing to feel any sympathy makes me a bad person? -nt

[Endangered Specie]

42. Wal-Mart - Always NO Prices!

[barb162]

44. Retail theft is fairly common

and maybe if they didn't have their employees running around doing 10 things at once, they could get a bit more control on it. I think the eyes of the employees could be their best bet to lower the theft.

[donco6]

46. Price you pay when you reduce payroll.

Fewer employees watching = more people taking. That's Retail 101.

[ShortnFiery]

48. So true. If you treat your employees like trash, they will covertly make you PAY.

and pay and pay ... bank on that!

The best companies with regard to quality customer services are the ones who do right by their employees. :-)

[RUMMYisFROSTED]

58. Boo-hoo.

:cry:

[NashVegas]

59. So Much for RFID

...