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 Shoplifters, by CNBC Television, November 22, 2019. Image source: Â© SIBSA Digital Pvt. Ltd. / Alamy Stock Photo.
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