Consultant: Wal*Mart To Lose $3 Billion to Theft This Year
Wal*Mart, the world’s largest retailer, has been disclosing much lately about “shrinkage” in its stores, meaning losses of merchandise due to theft. Now, a consultant has put a price tag on that shrinkage figure: $3 billion this year alone.
Retail consultant Burt Flickinger III, quoted by the AP and backed up by several other experts, said that retail giant will lose that amount this year due to shoplifting, theft by employees, and other fraud. And while the $3 billion figure is a considerably large number, it counts against Wal*Mart’s $348 billion in worldwide sales last year.
The National Retail Security Survey, released this week by the National Retail Federation and the University of Florida, placed the national retail theft figure for 2006 at $41.6 billion, an all-time high, which counted for 1.61 percent of total sales. Wal*Mart had traditionally dealt with less theft than most of its competitors, but that gap is closing due to reduced full-time and security personnel at the stores, analysts told the AP.