Walmart’s Out-of-Control Crime Problem
August 17th, 2016Via: Bloomberg:
Police reports from dozens of stores suggest the number of petty crimes committed on Walmart properties nationwide this year will be in the hundreds of thousands. But people dashing out the door with merchandise is the least troubling part of Walmart’s crime problem. More than 200 violent crimes, including attempted kidnappings and multiple stabbings, shootings, and murders, have occurred at the nation’s 4,500 Walmarts this year, or about one a day, according to an analysis of media reports. Sometimes they’re spectacular enough to get national attention. In June, a SWAT team killed a hostage taker at a Walmart in Amarillo, Texas. In July, three Walmart employees in Florida were charged with manslaughter after a shoplifter they chased and pinned down died of asphyxia. Other crimes are just bizarre. On Aug. 8, police discovered a meth lab inside a 6-foot-high drainage pipe under a Walmart parking lot in Amherst, N.Y.
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There’s nothing inevitable about the level of crime at Walmart. It’s the direct, if unintended, result of corporate policy. Beginning as far back as 2000, when former CEO Lee Scott took over, an aggressive cost-cutting crusade led many stores to deteriorate. The famed greeters were removed, taking away a deterrent to theft at the porous entrances and exits. Self-checkout scanners replaced many cashiers. Walmart added stores faster than it hired employees. The company has one worker for every 524 square feet of retail space, a 19 percent increase in space per employee from a decade ago.
In terms of profit, all this has worked: Sales per employee in the U.S. have grown 23 percent in the past decade, to $236,804. For criminals, however, the cutbacks were like sending out a message that no one at Walmart cared, no one was watching, and no one was likely to catch you.
