Retailers across the country have been experiencing a wave of theft that is wreaking havoc on their profits. But, according to a new report, some of these businesses may be exaggerating the extent of the thefts to cover up their own internal issues, such as employee theft. It seems that these retailers are using the excuse of organized theft to divert attention from their own mistakes.
It’s no secret that theft from customers and organized gangs has been a problem for retailers. However, it is becoming increasingly clear that employee theft is also a significant contributor to these losses. According to CNBC, some companies have discovered that their own employees are stealing from them, even as they publicly blame external thieves.
A new report suggests the same businesses that blamed organized theft for cutting into their profits may have actually been overstating how much is stolen as cover for internal issues such as employee theft.https://t.co/FG5AmqEkqf
— Washington Examiner (@dcexaminer) August 10, 2023
Retail analyst Neil Saunders believes that the issue of theft is being exaggerated by retailers who are looking for someone to blame for their declining profits. He argues that shrink, which is the difference between a retailer’s expected inventory and their actual inventory, can be caused by a variety of factors, not just theft. Saunders suggests that blaming theft is a convenient catchall for other problems within a retail business.
While it is unclear whether employees actually steal more than shoplifters, it is certainly easier for them to do so. Employees have intimate knowledge of a store’s security weaknesses and can easily exploit them. They can also go undetected for longer periods of time because they know how to hide their activities.
Employee theft is not limited to brick-and-mortar stores. It is also a major issue in warehouses and fulfillment centers, where employees may have access to valuable merchandise. Just last month, a former Amazon warehouse operations manager was sentenced to 16 years in prison for stealing $9.4 million from the company. She used her position to submit fake invoices and transfer the stolen funds to her own bank accounts.
While there are undoubtedly cases of employee theft, it is unfair to paint all retailers and their staff as untrustworthy. Small business owner Deborah Koenigsberger argues that most retailers and their employees are honest and are just trying to survive. She has seen many businesses go under due to theft and rising crime, and believes that the retailers blaming employee theft are simply trying to shift the blame away from their own shortcomings.
In conclusion, while theft remains a significant problem for retailers, it is important to distinguish between external theft and internal issues, such as employee theft. Some retailers may be using the excuse of organized theft to cover up their own mistakes and shift the blame onto others. It is crucial to address this issue honestly and transparently, without casting suspicion on all retail employees.