Could Home Depot and More Retail Stores Raise Prices Due to Soaring Shoplifting Rates?

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In a recent opinion piece in the Washington Post, Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce, described organized retail crime (ORC) as a ā€œa full-blown national crisis on an unprecedented scale.ā€

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ā€œWe are not talking one-time shoplifters stealing out of need, but criminal rings pilfering large amounts of goods with the intent to resell, usually online,ā€ said Bradley. ā€œThese crimes increasingly turn violent.ā€

This is something Home Depotā€™s CEO Ted Decker and Vice President of Asset Protection Scott Glenn know all too well. For the home improvement giant, itā€™s not just profit that is being lost, itā€™s lives.

Defined by the National Retail Federation (NRF) as ā€œthe large-scale theft of retail merchandise with the intent to resell the items for financial gain,ā€ organized retail crime has been dangerously surging since the pandemic.

When taken as a percentage of total retail sales, the NRF estimated $112.1 billion was lost to organized retail crime in 2022, up from $93.9 billion in 2021. Speaking to ABC News, Glenn said that ORC theft at Home Depot stores has been ā€œgrowing double-digit year over year,ā€ prompting the company to start locking up more items, both high-value ones and even less expensive products.

ā€œTheyā€™re not all big ā€” theyā€™re not all power tools and generators. You can have a circuit breaker ā€” [worth] $50, $60, $80 ā€” those are all high-theft items,ā€ said Glenn.

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While retailers are rightfully concerned about losses to their margins and profitability, they are highly disturbed about a heightened level of violence and threat of violence associated with theft and crime.

Over the last year, two employees ā€” Gary Rasor, 83, and Blake Mohs, 26 ā€” were fatally attacked trying to stop thefts while working at their North Carolina and California Home Depot stores, respectively.

ā€œMore and more weā€™re seeing the risk being brought into the stores, and people being hurt or people even being killed in many cases because these folks, they just donā€™t care about the consequence,ā€ Glenn said.

Last year, 81% of NRF survey respondents reported that ORC offenders had grown more violent. This year, 67% said they were seeing even more violence and aggression from organized retail crime culprits compared with a year ago.

Of course, extra security measures comes at a cost. Store customers might not see changes at the cash to start, but anti-crime prevention has to be paid for somewhere. However, consumers will most likely see changes to their shopping experiences very soon.