With shoplifting getting worse and worse, Walmart may shut down stories in locations where law enforcement is not strong enough.
CEO Doug McMillon of the retail giant claimed that the company is experiencing a surge in “shrink-related losses” which refers to in-store theft or fraud
“Theft is an issue. It’s higher than what it has historically been,” McMillon said during an appearance on CNBC’s “Squawk Box” on Tuesday.
“We’ve got safety measures, security measures that we’ve put in place by store location.
“I think local law enforcement being staffed and being a good partner is part of that equation, and that’s normally how we approach it,” McMillon added.
“If that’s not corrected over time, prices will be higher, and/or stores will close.”
Walmart is not the first company to speak up on the issue of retail theft.
Target has also faced a $400 million loss from company profits which is expected to go up to $600 million by the year end.
Walmart currently has over 4500 stores in the US alone and over 10,000 stores worldwide, but it is unclear how many are estimated to close or how much loss the company has faced so far.
