'You sometimes fall over in shock' seeing extreme ways shoppers steal from self-checkout, warns major chain's CEO | 4R5BZT9 | 2024-05-12 05:08:01
THE CEO of a prominent European retailer has revealed the extreme ways he sees shoplifters steal from self-checkout as stores around the world are scrambling to prevent theft.
Ton van Veen, the head of Jumbo, a Netherlands and Belgium-based supermarket chain, said he was baffled at the number of "creative" ways the company has seen customers attempt to steal merchandise over the past year.
Van Veen explained that shoplifting rates have become so bad for Jumbo that losses from inventory shrink due to theft exceeded profits in 2023, per Netherlands news company Algemeen Nederlands Persbureau (ANP).
"We often catch people not scanning products or not paying at the cash register," the CEO told the outlet.
"People are becoming increasingly sophisticated in not paying for products."
"You sometimes fall over in shock to witness how creative people are to take products without paying," he added.
Jumbo holds around 700 store locations across the Netherlands and Belgium, per Fox News.
In an earnings release from the supermarket chain around the New Year, Jumbo noted the value of the items stolen in its stores in the past 12 months to be at least 25% greater than its profits.
Jumbo noted that losses due to theft typically cost around $110 million, according to the NL Times.
In 2023, the company expected profits of only $80 million, making for a $30 million loss.
The supermarket chain explained to the publication that employees often faced difficult situations on a day-to-day basis with customers attempting to steal.
"In many stores, the loss due to stolen products now amounts to around 1% of turnover, and store employees are confronted with unpleasant situations and increased tensions," the company noted.
Van Veen also stressed that the theft problem doesn't seem to be on a downward trend, leading him to call on politicians to take action on laws surrounding shoplifting.
"This is a growing problem, and we are appealing to politicians to address this," the Jumbo CEO said, per the NL Times.
"It also very much depends on the neighborhood. There are market areas where we are more troubled by it, and there are areas where it is less prevalent."
In total Jumbo estimated a 60% increase in shoplifting from 2022 to 2023 alone, with much of that spike attributed to increased living costs, according to the Financial Times.
Jumbo officials also noted self-checkouts to be responsible for at least one-third of its theft loss numbers.
Like major retailers in the United States, the Netherlands and Belgium-based supermarket chain has implemented significant anti-theft measures in a desperate attempt to mitigate stealing.
Van Veen explained that security guards and surveillance cameras were added to a "growing number" of Jumbo locations.
"We will communicate with customers so that they know that they are being recorded. We respect all privacy regulations," the CEO told the NL Times in regard to the security updates.
"As soon as we take concrete steps, we will provide further information about this."
Even with the introduction of security guards and surveillance cameras at Jumbo locations overseas, anti-theft measures at the chain have yet to surpass those seen at American retail giants.
SHOPLIFTING IN AMERICA
As The U.S. Sun previously reported, Target is among a handful of companies that have experimented with significant security additions to combat theft rates.
Target notably locks items behind glass in select locations, with customers needing to ask an employee for assistance to unlock the area if they need a product.
At one location, the retailer even added age-restricted entry, along with ID checks, a closed-off self-checkout area, and baggage checks from security before exiting.
In a press release from the end of September, Target even announced the closure of nine stores, which CEO Brian Cornell attributed to shoplifting and stressed the need for the safety of employees.
Competitors like Walmart have had similar issues.
CEO Doug McMillon noted a historic high in theft back in December 2022, and throughout 2023, the company implemented artificial intelligence security cameras at self-checkout, receipt checks, and also experimented with items locked behind glass.
Walmart's anti-theft measures have garnered considerable backlash from customers, especially receipt checks.
Many are also fed-up with the retailer's self-checkout area, with complaints of long lines and faulty technology.
Some called for the axing of self-checkouts entirely, but Walmart confirmed to The U.S. Sun that the future of self-checkouts remains unchanged as of yet.
Even so, at least three Walmart locations in New Mexico removed self-checkouts entirely.
Costco, Kroger, and several others also noted significant theft struggles in 2023.
Data collected by the National Retail Federation showed at least $112 billion in losses for retailers in 2022 due to organized crime, with 2023 numbers still unclear.
More >> https://ift.tt/rxNRgd7 Source: MAG NEWS
