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Shrinkage at Walmart

Wednesday, June 18, 2014

Walmart Walmart (JeepersMedia/flickr)

Investigative journalist Spencer Woodman reports about Walmart leadership encouraging store management to mask rates of "shrinkage," which is the value of goods stolen/otherwise lost, by manipulating inventory metrics—and thereby profit margins—through an array of improper and possibly illegal techniques. Woodman's article "Former Managers Allege Pervasive Inventory Fraud at Walmart. How Deep Does the Rot Go?" is in The Nation.

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Spencer Woodman

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Comments [4]

Don from NJ

My son had an experience as a part time employee of a national drugstore chain. He was called in by security and accused of stealing (hadn't). The goal seemed to be coercing these kids intto signing agreements to make restitution for estimated thefts. The Philadelphia inquirer had previously exposed a similar practice by a convenience store chain. When i threatened to call them, they backed down. My son then resigned

Jun. 18 2014 01:58 PM
jgarbuz from Queens

Clearly a cover up for internal thieves. And it is possible that stolen goods purchased by workers to sell for their own benefit may account for "overage."

Jun. 18 2014 01:52 PM
jgarbuz from Queens

Often, some of the best workers also prove to be some of the best thieves, who "pay themselves" what they believe they should be paid. It's often a quandary because do you fire some of your best salespeople who are also robbing you at the same time?

Jun. 18 2014 01:43 PM
jgarbuz from Queens

Having once been in the retail business I can affirm that just a little bit of pilferage and shoplifting that isn't quickly curtailed can put you out of business soon enough. You have to have eyes like a hawk plus have the ability to confront both shoplifters and workers who are pilfering in a firm but politic way. If you aren't on top of your business at all times, they'll take your eyes out and you won't see it.

Jun. 18 2014 01:33 PM

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