Theft rising at U.S. Wal-Mart stores

[JODO 2]

Theft rising at U.S. Wal-Mart stores

By ANNE D'INNOCENZIO and MARCUS KABEL, AP Business Writers

Wed Jun 13, 6:40 PM ET

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.

Although Wal-Mart declined to reveal any details, analysts suspect Wal-Mart — which for years had a theft loss rate that was half that of its peers — is getting closer to the industrywide average. Theft is a big problem for all retailers, costing them $41.6 billion last year, according to a joint study released Tuesday by the National Retail Federation and the University of Florida. The study found that the theft rate as a percentage of sales ticked upward slightly to 1.61 percent of sales in 2006 from 1.60 percent in 2005.

Whatever the cause, such theft — which late founder Sam Walton once called one of retailers' top profit killers — adds one more challenge when Wal-Mart is already struggling with sluggish sales at its established stores due to an overall economic slowdown as well as its own stumbles in its home and apparel merchandising strategies.

In one of the more brazen employee thefts, a man wearing dark clothing and a ski mask entered a Port Clinton, Ohio, Wal-Mart store in January at midnight unnoticed by employees and stole $45,000 from the store safe. The store's night manager, Dana Walker, 30, was later arrested for the crime. He became a suspect because he knew the combination to the safe, police said.

The company's vociferous critic WakeUpWalMart.com, funded by the United Food and Commercial Workers which has for years tried to organize the retailer's workers, publicized the company's decision last year to relax its zero-tolerance policy on shoplifting. The new policy seeks prosecutions of first-time offenders only if they are between ages 18 to 65 and steal at least $25 worth of merchandise.

http://news.yahoo.com/s/ap/20070613/ap_on_...cPvURp_oRoDW7oF

[Ladylethal 12]

I was just talking about that to my husband yesterday. Being from Brazil I get amazed how Walmart seems so "free". I went there yesterday to get thread for my cross-stitching project, I needed one color so I picked it up and while I was walking to the line to pay for it I commented on how strange it is to be in a store that believes in honesty thing, since there's barely any security, no one paying attention, so I asked him if shoplifting was common here or if people were so honest that it wasn't necessary to be watching the customers.

I guess in Brazil I wouldn't see such a big store do that. I mean, small things are usually sold in a separate department or comes with those magnet tags that beep if you walk out of the store. I actually thought to myself how cool and civilized was to be able to shop and have people trust that I am an honest person.

[dalegg 143]

The new policy seeks prosecutions of first-time offenders only if they are between ages 18 to 65 and steal at least $25 worth of merchandise.

http://news.yahoo.com/s/ap/20070613/ap_on_...cPvURp_oRoDW7oF

I think they want people to steal there. For stealing $25 in merchandise they are allowed to charge up to $400 and they always charge that (at least in California). Most of the girls are trying to steal $30 in makeup. It's a good racket.

[Marilyn. 340]

I know all the Walmarts I have been to have those security things as you go out of the store that beep at you if the tellers haven't cleared your items or if someone has shoplifted something...

[JoeMama 0]

Usually, the workers push the stuff out the back door. Maybe take it straight from the truck into their cars.

[mRx 16]

Usually, the workers push the stuff out the back door. Maybe take it straight from the truck into their cars.

They are just trying to get compensated for all the undocumented overtime they are forced to work.

[Nessa 23]

I thought they had surveillance cameras

[almaty 19]

Usually, the workers push the stuff out the back door. Maybe take it straight from the truck into their cars.

They are just trying to get compensated for all the undocumented overtime they are forced to work.

yeap, they feel no love from to the company..

[~PalmTreeGurl~ 154]

hey everyone... im a customer svc mgr for walmart... next month will be 7 yrs there for me.... There IS ALOT of theft in walmart stores bcz walmart is more worried about lawsuits then people stealing... thats a shame! At my walmart we do have under cover security and they bust people every day! About 3 weeks ago on a friday night the undercover security caught about 13 different people stealing all kinds of things... and sent them ALL to jail... it kept the cops pretty darn busy from our store alone... We do have security survailance so be sure EVERYTHING is on camera.... i tell the associates i supervise that IF you pick ur nose... we will see it on tape... LOL so make sure you always do right...

walmarts stance is Do not work off the clock... so i know at my store we dont have a problem with that... matter of fact... us full time people are trying to get more hours bcz it seems like they are pushing us all to part time hours... im thinking so eventually they will knock off the benefits... (just my theory) but it seems thats whats going on ...

its no longer the same place as it used to be... just last month i think it was that Ms Walton passed away.... now i am even more sure there will be money hungry people at the top handling the company... hmmm possibly in a few years or sooner it wont even be called WAL-MART any more ...

[Nessa 23]

I would hate to work some place I can't pick my nose in peace jk jk

Edited June 14, 2007 by nessaandcharles

[deadbird 2]

Lol I know this is old, but I just wanted to mention that I'm an in-store demonstrator for Verizon in a severely understaffed Walmart. So now I've been adopted as a pseudo Walmart employee.

Last week, someone walked out with $5300 worth of iPods. INSANE. They got 8 iPod videos and a crapload of nanos & shuffles. Now I want one for free, too. lol

[L_n_O 3]

Well, doesn't walmart do that highlighter thing across your receipt to see if you paid for your items?

I don't see how that actually works unless you're carrying a 50" television on your shoulder and have no receipt to show for it..

[~PalmTreeGurl~ 154]

Well, doesn't walmart do that highlighter thing across your receipt to see if you paid for your items?

HAHAHA my associates the People Greeters use a hole puncher... that still doesnt stop theft...

We have UNDERCOVER security busting people every day !

[broma25 2]

Maybe if the check out people speedied things up a bit, people would wait to pay for goods.

[Ladylethal 12]

A bunch of times they don't even look at the receipt 'cus it's one lady at the door and a bunch of people walking out.