Doug McMillon, the CEO of Walmart, released a warning on Tuesday; if stealing doesn’t decrease, the company will shut down stores nationwide.
“Theft is an issue. It is higher than what it has historically been,” he stated.
“If it’s not corrected over time, prices will be higher, and/or stores will close.”
McMillon didn’t discuss how much money Walmart has had go out the door this year due to stolen products.
However, it is probable that the company loses about 1% of its profits in the U.S., which is about $3 billion each year, because of theft by customers and workers.
McMillon also noted that in order to handle the problem, there must be a partnership with law enforcement agencies. There must also be a plan in place to fill these roles.
Walmart isn’t the only retail store that has suffered because of theft. This year, Target has reported $400 million worth of missing inventory. By the end of the year, they suspect that the number will be closer to $600 million.
Target has blamed much of the problem on organized crime.
“Along with other retailers, we’ve seen a significant increase in theft and organized retail crime across our business,” said CEO Brian Cornell.