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Best Buy CEO Corie Barry said Tuesday that rising theft is hitting the company’s profits and could hurt employee retention at a time when the labor market is tight, especially in the retail industry.
She said the retailer has seen a noticeable jump in organized crime, with people coming to stores to steal consumer electronics — and in some cases, bringing a weapon such as a gun or a crowbar. She said the company will prioritize the safety of customers and employees, even if that means criminals are running out the door with thousands of dollars of merchandise.
“These are traumatic experiences, and they are happening more and more across the country,” she said on CNBC’s “Squawk on the Street.”
Other retailers, including Kroger, CVS Health and Walgreens Boots Alliance, have also spoken about an increase in theft. Walgreens said it is even closing certain stores because of it.
To fight organized crime, Best Buy is locking up some of its merchandise, hiring security guards in certain locations and working with retail trade groups to look for solutions, Barry said on an earnings call.
She said San Francisco and other parts of California have been “hot spots” for the crimes but that there are problematic pockets across the country. In some cases, she said, more than a dozen people rush in a store and run out with goods. In other cases, it’s just a couple of people.
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