Best Buy (NASDAQ:BBY) CEO Corie Barry said Tuesday that rising theft is hitting the company’s profits and could hurt employee retention at a time when the labour market is tight, especially in the retail industry.
Barry said the retailer has seen a noticeable jump in organized crime, with people coming to stores to steal consumer electronics — and in some cases, bringing a weapon like a gun or a crowbar. She said the company will prioritize the safety of customers and employees, even if that means criminals are running out of the door with thousands of dollars of merchandise.
Other retailers, including Kroger (NYSE:KR), CVS Health (NYSE:CVS) and Walgreens Boots Alliance (NASDAQ:WBA), have also spoken about an increase in theft — with Walgreens even saying it is closing certain stores because of it.
To fight organized crime, Best Buy is locking up some of its merchandise, hiring security guards in certain locations and working with retail trade groups to look for solutions, said Barry on an earnings
call.
She said San Francisco and other parts of California have been “hot spots” for the crimes, but said there are problematic pockets across the country. In some cases, she said, more than a dozen people rush in a store and run out with goods. In other cases, it’s just a couple of people.
In the past week, two Nordstrom (NYSE:JWN) stores in California have been targeted by groups of looters in these types of “smash-and-grab” robberies.
BBY shares faltered $21.87, or 15.9%, to $116.13.
