Retail theft is spreading faster than Covid in the run-up to Christmas, according to Bob Nardelli, former Home Depot CEO and ex-chairman and CEO of Chrysler.
Speaking on Fox and Friends on Thursday, Nardelli described the trend, which spiked around the same time in 2021, as an epidemic, adding that thieves appear to have become emboldened this year.
The degree of severity now, its not just theft, its smash and grab, he said. Theres an entitlement out there that if you have it, youve worked hard to earn it. I want it. Im just going to take it.
Nardellis comments come shortly after Walmart CEO Doug McMillon warned that the trend could lead to price rises and even store closures. McMillon told CNBC that theft is higher than what it has historically been.
Now it has elevated to the point where youve got Doug McMillon talking about impacting earnings. And this is another silent contributor to inflation, Nardelli said.
Our associates are afraid. The retail salespeople are afraid. Consumers are afraid. Weve got to get control of this. And if the administration doesnt get control of this, theyre abdicating it to the businesses, both public and private.
Shoplifting concerns have also been raised by another of other outlets including Kroger, Target, Best Buy, CVS and Walgreens.
How much has retail theft increased?
Large retailers suffered a near $100 billion loss from such criminal activity last year, which they now say is increasing further. The National Retail Federation recently reported that total losses from shrink increased to $94.5 billion in 2021, and that organized retail crime incidents soared 26.5% on average.
According to the same survey, 80% of retailers have reported violence and aggression associated with retail theft increased in the past year. Home Depot expressed outrage after an elderly worker from an outlet in North Carolina died after he was pushed to the ground during a store theft in October.
Its unbelievable whats happening and what were allowing to happen, Nardelli said. Again, unfortunately, the abdication is put in the hands of corporations like Walmart, Target and the gas stations, for example, that have to take control and protect their property and their employees.
In 2021, White House press secretary Jen Psaki said the pandemic was the root cause of a surge in retail crime. Psaki added that the Biden administration was working to crack down on the trend, but retailers say theyve seen no improvement.
It used to be somebody would take a candy bar, there maybe was damage as a result of shipment, there was misplaced inventory, said Nardelli. But now, its just blatant robbery. Its just blatant robbery. It isnt the small incidents that take place.
Our new weekly Impact Report newsletter examines how ESG news and trends are shaping the roles and responsibilities of todays executives. Subscribe here.
