(CNN) – Best Buy CEO Corie Barry stated theft is a rising downside within the firm’s shops and that it’s implementing further safety measures to guard staff and consumers.
“This is traumatic for our associates and unacceptable,” Barry stated in a name with analysts Tuesday. “We are doing everything we can to try to create the safest environment possible.”
Barry stated the corporate is implementing a sequence of ways to reduce theft and shield workers and prospects. For instance, Best Buy is obstructing extra merchandise and hiring safety when obligatory.
Barry stated that retail organized crime is on the rise at Best Buy. The tactic entails an organized “gang” of individuals stealing complete cabinets of high-value merchandise, corresponding to electronics, to resell them for a revenue.
Rising crime is turning into such an issue that it’s hurting Best Buy’s earnings and will harm its capacity to retain and appeal to extra staff in a good job market, Barry stated in an interview Tuesday on the present “Squawk on the Street “from CNBC.
Some incidents concerned folks carrying a weapon, corresponding to a pistol or crowbar, he stated.
The retail trade is struggling to deal with the escalation of organized retail theft. A 2020 survey of 61 retailers from the National Retail Federation, the most important commerce group within the trade, confirmed that organized retail theft elevated by practically 60% since 2015 and value shops a mean of $ 719,548 per US $ $ 1 billion in gross sales.
Express thefts on the rise at Best Buy
Barry’s feedback come on the heels of a sequence of San Francisco retail robberies in latest days wherein thieves attacked a Louis Vuitton retailer, a Burberry retailer, a jewellery retailer, and Bloomingdale’s and Walgreens shops.
This Saturday, a Nordstrom division retailer close to San Francisco was ransacked in what police described as an “express robbery” incident.
Industry specialists say shoplifting is now a major problem and getting worse.
“While retailers have always suffered from shoplifting in general, there is a growing scourge of organized gangs stealing to order,” stated Neil Saunders, retail analyst and managing director of GlobalData Retail.
“Gangs are much more dangerous for retailers and for shoppers,” he stated. “The problem is that while store security and associates can take on thieves, they can’t do much against gangs as they are outnumbered.”
Saunders stated their native communities will in the end endure if this development isn’t reversed.
“If the theft grows too big, then the retailers will just pull out of certain locations, as we’ve seen with some of the stores already,” he stated.