Walmart CEO says theft is higher than it has historically been

Walmart CEO Doug McMillon was one of the retail executives to weigh in on theft, describing it as an issue that has worsened.

McMillon said theft is higher than what it has historically been during his appearance on CNBC. He explained that Walmart has safety and security measures that they put in place by store location to help combat the issue.

I think local law enforcement being staffed and being a good partner is part of that equation, and that is normal how we approach it, McMillon said.

In mid-September, the National Retail Federation found that total losses from shrink, a term retailers use for theft and other types of inventory loss, increased to $94.5 billion in 2021. According to the 2022 National Retail Security Survey, retail crime incidents soared by 26.5% on average in the same year.

The Walmart CEO said during his CNBC appearance that prices will be higher and stores will close if authorities aren't strict about prosecuting theft over time. McMillon mentioned policy consistency and clarity in response to a question about what he wanted from policymakers, so we can make capital investments with some vision. Walmart didn't give any details to FOX Business about the rising retail crime the company is facing.

Target and Rite Aid executives are among the retail leaders who have raised the alarm about retail theft in the past few months.

Michael Fiddelke, Target's CFO, told investors and analysts in mid-November that shrink has already reduced our gross margin by more than $400 million compared to last year, and we expect to reduce our gross margin by more than 600 million for the full year.

He said that this is an industry-wide problem that is often driven by criminal networks, and we are working with multiple stakeholders to find industry-wide solutions.

Target CEO Brian Cornell called theft a growing financial burden among retailers, noting that the company has seen an increase in theft and organized retail crime across our business that has resulted in significant investments in training and technology to help prevent it.

In September of the company's earnings call, Heyward Donigan reported that the pharmacy chain experienced unexpected headwinds from shrink, particularly in New York City stores. The company's front-end gross profit was impacted by a $5 million increase in shrink, according to CFO Matt Schroeder.

In January, Home Depot Vice President of Asset Protection Scott Glenn told FOX Business that the home improvement company has been doing more physical security and innovating new tools and technologies to make it harder for the bad guys and girls to steal products.