No. of Recommendations: 14
Every now and then you might want to read an annual report. Start in the retail sector if you like the facts. I do. You know what they’re saying?
A major US drugstore chain that supposedly experienced a surge in shoplifting last year – fanning the flames of conservative outrage over a purported spike in crime and disorder – said on Thursday that it might have overstated the problem.
Walgreens’ chief financial officer, James Kehoe, said during an earnings call that “shrinkage” – the difference between a balance-sheet inventory and actual stock – had returned to lower levels after a brief rise. Retail shrinkage is largely due to theft, though some is also due to accidental damage or loss.
“Maybe we cried too much last year when we were hitting numbers that were 3.5% of sales,” Kehoe said, according to an earnings call transcript. “We’re down in the lower twos, call it, the mid-2.5, 2.6 kind of range now.” https://www.theguardian.com/us-news/2023/jan/06/wa....
“Shrink” is almost exactly where it has traditionally been. And shrink includes a lot of things, yes, including shoplifting and organized gang theft. But it has long been known than 2/3 of shrink happens before the product hits the retail shelves: in transport (damaged crates which mysteriously disappear), theft from stockrooms, and employee fraud including fraudulent returns.
It’s those pesky “facts”, which it would helpful if you would try getting news from somewhere other than right wing sources. Really, it doesn’t take that much to break through the bubble. Try it.
