WASHINGTON — Walmart CEO Doug McMillon warned this week that rising thefts at the nation's largest retailer could force higher prices and even store closures.
"Theft is an issue. It's higher than what it's historically been," McMillon described during an appearance on CNBC's "Squawk Box."
Asked Tuesday about how some jurisdictions have moved toward prosecuting theft only above a certain level, McMillon warned that approach could impact consumers down the road.
“If that’s not corrected over time, prices will be higher, and/or stores will close,” McMillon said.
“It’s really city by city, location by location. It’s store managers working with local law enforcement and we’ve got great relationships there for the most part and that's the way we approach it,” he added.
Walmart isn't the only company facing an uptick in shoplifting and large, organized thefts at stores.
Last month, Walmart competitor Target said theft was a growing problem at its stores as well, with the number of thefts up 50% so far this year.
While discussing third quarter earnings results, executives for the Minneapolis-based retailer said organized retail crime has been a major driving cause behind hundreds of millions of dollars in profit losses due to inventory shrink in 2022, according to Business Insider.
A 2022 survey from the National Retail Federation found retailers reported an average 26.5% increase in organized retail crime.
