Oopsie.
That may have been the reaction of Big Retail when they found out the numbers they were using to jack up prices, reducing convenience and calling for stricter laws punishing people might have been faulty.
(Or maybe it was what they said when they realized we now knew what they knew but didn’t think we would know, you know?)
It was in September when mega retailer Target announced it would close nine stores in four states because of massive theft and a menacing organized retail theft ring/crime spree that was devastating the country and merchants’ bottom line.
The announcement came after videos of various “smash and grab” robberies were circulated on the news and social media throughout the year, suggesting a tsunami of lawlesness was barreling toward our civil society.
Retailers told us thieves were responsbile for the higher prices honest consumers were seeing in stores, as well as the reduction in expedient self checkout lanes and higher security measures. Often times, a quick visit to Target for a tube of toothpaste or bottle of shampoo found them under lock and key. A busy associate in another had to be summoned. One half expected to be asked for a government issued ID and fingerprints.
Target wasn’t alone in adopting some of these measures and soon the National Retailers Federation was lobbying local, state and federal legislators on their behalf, citing losses that were just over $110 billion!
Turns out that number was inflated.
Recently the NRF clarified the figures they reported earlier this year were wrong or miscategorized. The hundreds of billions of dollars in losses wasn’t solely because of theft. Some of it was caused by damaged and lost goods as well as administrative errors in inventory tracking.
Yes, there were losses because of theft including online fraud, returned merchandise scams, and employees stealing but overall the level of “shrink”, as the industry refers to inventory loss, has remained relatively steady since 2015.
There was no massive wave.
But don’t tell that to the executives who benefitted from increased prices or the politicians who can run on and exploit “tough on crime” platforms. For them, hysteria is a gift that will keep on giving.
