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Wal-Mart loosens policy on shoplifting to cut costs

Posted Jul 13th 2006 1:01PM by Brian White
Filed under: Rumors, Industry, Consumer experience, Internet, Competitive strategy, Wal-Mart (WMT)

Maybe Wal-Mart is prosecuting way too many shoplifters these days -- weighing down costs in court or something. In a rather bizarre move by the world's largest retailer, Wal-Mart has decided to stop prosecuting shoplifters who steal items valued at less than $25 from its shelves. Maybe it'll just slap folks who steal a pack of gum on the wrist and send them on their way or something.

The new Wal-Mart policy calls for prosecuting anyone between the ages of 18 and 64 who shoplifts more than $25 -- where the threshold before had been $3. Reading from this source article, it looks like a cost-cutting policy change to me -- and it makes sense. Is the cost to prosecute someone who takes a $15 pair of shorts more than the shorts are worth? Of course it is -- probably by a factor of 10. Of course, this policy change includes that after a second incident of a less-than-$25 shoplifting charge, that prosecution will be reinstated. Otherwise, they'd see a rash of $10 shoplifting charges for groceries and the like most likely.

With many police officers actually stationed at Wal-Mart -- at taxpayer expense -- I'm sure many police departments across the country are breathing a sigh of relief here. The flood of petty arrests at Wal-Mart for just a few dollars worth of goods may finally be over, and extra uniforms can be deployed to more important things, like solving crimes and arresting drunk drivers. With Wal-Mart always seeking ways to reduce costs, this is a good move on its part.

Tags: Retail Shrinkage, RetailShrinkage, Wal-Mart, WMT

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