What are retail shrink and organized retail theft, and why do companies keep talking about them?

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Shrink, retail theft and organized retail theft are often cited by retailers as a reason for lower profits, but the terms are distinctly different.

In January, Walmart's CEO Doug McMillon told CNBC

At the bottom are boosters, the people who steal items from the stores. They then turn the items over to fencers, who pay the boosters for the products for a fraction of what they cost. In the past, fencers often offloaded stolen goods in informal places like flea markets or disreputable small retail businesses. But with theAfter the Covid pandemic led to widespread store closures and lockdowns, e-commerce became the primary way consumers shopped, which caused organized retail theft to increase, some experts said.

For example, the crime of petit larceny is charged in New York when an individual steals less than $1,000 worth of goods. If convicted, the defendant faces up to a year in jail. But they can also receive probation, community service and fines, in addition to restitution.

 

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