Organized Retail Crime at Home Depot

Organized Retail Crime at Home Depot

Crime rings targeting retail stores have become well organized.

The stolen goods quickly change hands through a network of criminals and often end up being sold online with little traceability. Fueled by the opioid epidemic, the problem has been growing steadily, causing serious shrinkage in retailers’ inventories. Home Depot and other retailers have increased their crime prevention efforts and are working with law enforcement to protect their bottom line and honest shoppers.


Video Spotlight: Fighting Organized Retail Crime and Sting Operations


This post is based on the CNBC.com article, Inside Home Depot’s Efforts to Stop a Growing Theft Problem at its Stores, by C. Reagan and J. Schlesinger, November 22, 2019, and the YouTube video, Behind the Scenes of Home Depot’s Operation to Take Down Professional Shopliftersby CNBC Television, November 22, 2019. Image source: Â© SIBSA Digital Pvt. Ltd. / Alamy Stock Photo.

Discussion Questions:

1. What is shrinkage and how does it occur? Why is the type of shrinkage featured in the article particularly worrisome?

Guidance: Shrinkage means that the retailer has less inventory than what is shown in accounting records. Theft by customers or employees, damage, defective items, loss of items, Continue reading

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Amazon Bets Big On Faster Shipping

Amazon Bets Big On Faster Shipping

November 15, 2019

Amazon spent $1.5 billion to improve its transportation and warehouse infrastructure and increase its inventory to cut its Prime shipping from two days to one.

The next-day delivery investment has brought benefits, including new record sales, improved revenue growth, increased warehouse and shipping staff, and happier customers. However, shipping costs have also increased 46% in the company’s second quarter.

Investors are overall optimistic about the outlay, but Amazon’s recently predicted weak holiday demand, which has raised some concerns.


Video Spotlight: Amazon’s profit falls due to same-day delivery costs, and other top business news


This post is based on the CNET article, Amazon’s next-day shipping ambitions are costing it a fortune, by Ben Fox Rubin, October 25, 2019, and the YouTube video, Amazon’s profit falls due to same-day delivery costs, and other top business news, by CityNews Toronto, October 25, 2019. Image source: Daniel Grizelj/Getty Images

Discussion Questions:

1. Is Amazon’s one-day Prime shipping a strategic capacity decision?

Guidance: Yes – it enables Amazon to meet customers’ demand for next-day delivery, increases operating costs, reflects a long-term commitment to e-business, and enables competitiveness in e-retailing.

2. What investment did Amazon make to cut its Prime shipping from Continue reading

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Y’all, It’s Back: Popeyes’ Chicken Sandwich

Y’all, It’s Back: Popeyes’ Chicken Sandwich

November 4, 2019

Popeyes Louisiana Kitchen announced that its chicken sandwich would return on Sunday, November 3, 2019.  The company also released a simple ad called “Open Sunday” to announce its availability.

Sunday, November 3rd is important in two ways.  First, it is National Sandwich day.  What better day to re-introduce a very popular sandwich.  Second, it’s a reminder to customers that one of its main competitors–Chick-fil-A–is not open on Sundays. In its 20-second ad, a highway sign shows Chick-fil-A’s “Closed Sunday” tag; an “Open Sunday” tag is added for Popeyes.

The original release of the sandwich, in August 2019, went viral after a twitter war with Chick-fil-A.  The twitter war eventually grew to include many other restaurants’ chicken sandwiches.  For Popeyes, the response was overwhelming. Inventory that had been forecast to last two months ran out in two weeks, and the chain had to temporarily remove the sandwich from its menu.


Video Spotlight: Open Sunday


This post is based on the Thrillist article, Popeyes Just Revealed When Its Chicken Sandwich Is Coming Back, by Kat Thompson, October 28, 2019, and the YouTube video, Open Sunday, by Popeyes Louisiana Continue reading

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