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Brick-and-mortar retail’s indisputable edge over e-commerce is that consumers can get what they want immediately, and can touch and feel the product before buying it. Rising theft—and stores’ measures to prevent it—could dull that edge.
The National Retail Federation estimates that shrink—an industry term for loss in inventory—amounted to roughly 1.4% of retail revenue in 2021, or roughly $94.5 billion. Most of that shrink is caused by theft. In a CNBC interview earlier this month, Walmart Chief Executive Doug McMillon said that if the retail theft issue is not addressed over time, “prices will be higher and/or stores will have to close.”
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