Theft Rising at U.S. Wal-Mart Stores

[Herman Munster]

http://biz.yahoo.com/ap/070613/wal_mart_theft.html?.v=16

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.

Wal-Mart declined to offer any explanations for the rise in losses, but denied it has cut security staff and said employee morale is rising rather than falling.

[Alexia Wheaton]

1. Gretchen Wilson CDs must be popular these days.

[MaraJade]

2. They constantly stiff their employees out of overtime. . .

maybe some are stealing simply to get what they are rightfully entitled to. . .

[ruiner4u]

3. Walmart now sells beer?

Im not trying to poo-poo your post, but unfortunatly I worked for that company.. Walmart does not sell beer.. When you goto Manager-Mecca in Bentonville you arn't allowed to escape to a town and drink beer.. its a weird wallmart thing...

[ordinaryaveragegirl]

5. They do here in Kansas, maybe it's per locality n/t

[karlrschneider]

6. The Wagoner, OK store sells beer. And demands an ID from everyone.

Even me at 65. No shit.

[Elwood P Dowd]

8. They sell beer here in Alabama

and have for years.

[TheFarseer]

9. Walmart sells more than beer in Nebraska

hard stuff too. Pretty much anything you would want.

[Lone_Star_Dem]

10. In 2005 Walmart branched out into more than just beer

Where it's allowed they also sell hard liquor.

[ordinaryaveragegirl]

4. If the suits would pay more and give the associates benefits...

Maybe they would feel less motivated to screw over the company, no? WM has, of course, downed numerous attempts by its employees to organize, because it wants to continue to pay them (not to mention suppliers!) as little as possible.

[DBoon]

7. low paid employees aren't necessarily thieves

But they would have less reason to go out of their way to bust a shoplifter

Organizations get the ethical environment they deserve. Given the way Walmart has treated its customers, employees, business "partners" and the communities that host the stores, it isn't too surprising that these thefts are occurring.

[pansypoo53219]

11. can you say

the bush economy?

[blitzen]

12. At our Mega Wal-Mart in Baton Rouge, there are virtually no cashier stands open...

and the automated cashiers are usually "out of order." About the only way to get any goods is to steal 'em.

[LeftyMom]

15. The Home Depot closest to me is like that.

And the Lowes I go to instead is getting to be that way. There aren't any independent hardware stores nearby anymore either. :(

Seems to me it's kinda hard to sell shit without cashiers, but one of the weirdnesses of retail management is you'll almost always get more shit for going over your labor budget than praise for making or exceeding sales targets. Stupid, but true.

[philosophie_en_rose]

13. I don't endorse theft, but Wal-Mart is reaping what it sows.

[Zookeeper]

14. Ummm..."no longer prosecute(s) minor cases of shoplifting"

Does one have to be an "analyst" to figure that out? :eyes:

[WorldTraveler777]

16. Don't be Fooled by Blame laid on Shoppers

My best friend and I ran a small retail business for half a dozen years. We were warned by our parent company (we were a franchise) that our employees and customers had to be watched closely because they would steal the most from us.

Turns out that the biggest rip off artists were suppliers. They would charge us for 100 newspapers and deliver 80. They would bill us for 10 loaves of bread, but put 9 on the shelf. They would say we got 65 magazines, when we only got 50. We had to count *everything* in front of the delivery person before they left the store, and often found "mistakes."

We had ways of testing to see if our cashiers were honest ... and our employees were. We treated our employees well and we had very little turnover.


The article mentions "supplier fraud and paperwork errors" but makes a false association in the lead that says that Walmart's problem is the little guy stealing flat screen TVs. Trust me, Walmart is losing more money because of those paperwork errors and supplier fraud than Jane and Joe walking out with some DVDs.

[Zookeeper]

17. Interesting.

I wasn't aware of that problem, but it makes sense.

[Kahuna]

18. Welcome to DU, WorldTraveler777!

:hi:

[pansypoo53219]

19. if you are supplying walmart

may be the only way to make a profit.