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**tomt** · August 18th, 2015, 06:17 PM

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**tomt** · August 18th, 2015, 07:27 PM

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**tomt** · August 18th, 2015, 09:28 PM

**tomt** · August 18th, 2015, 10:59 PM

Wal-Mart is getting hit hard by thieves

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Wal-Mart's theft problem is getting worse.

Wal-Mart US President Greg Foran said Tuesday that theft, which the company calls shrinkage, is one of three major factors behind the retailer's drop in profit in the most recent quarter.

"Inventory shrinkage was meaningfully higher than planned for the quarter," Foran said in an earnings call.

Wal-Mart likely loses about 1% of its US revenue — or roughly $3 billion dollars every year — to stealing by customers and employees .

The other factors contributing to Wal-Mart's profit decline are a drop in gross margin, primarily related to lower than expected pharmacy reimbursements, and higher wages, Foran said.

"I want to be straightforward: These issues will present continuing profit challenges for the remainder of the year," he said. "We are certainly disappointed. But we are not standing still. We know we can do better, and we will."

Wal-Mart's profit fell to $3.48 billion, or $1.08 a share, in the quarter ending July 31, from $4.09 billion, or $1.26 a share, a year earlier, the company reported Tuesday.

Customers push carts past reusable Walmart shopping bags during the grand opening of a Wal-Mart Stores Inc. location in the Chinatown neighborhood of Los Angeles, California, U.S., on Thursday, Sept. 19, 2013.? Patrick T. Fallon/Bloomberg Customers push carts past reusable Walmart shopping bags during the grand opening of a Wal-Mart Stores Inc. location in the Chinatown neighborhood of Los Angeles, California, U.S., on Thursday, Sept. 19, 2013.

Wal-Mart recently brought back employees known as "greeters" to its store entrances to help combat its theft problems.

The company also added a fleet of "asset-protection customer specialists," who will check receipts as shoppers leave, The Wall Street Journal reported.

Wal-Mart is testing the added door presence in 300 of its 4,500 US stores.

The company is also "reviewing the end-to-end inventory management process with a special focus on shrinkage" and increasing staffing in areas of the store where theft is most common, Foran said. In addition to theft, shrinkage can also occur with damaged goods or mistakes in recording inventory.

"It will take time to see results, so this will impact us... for the rest of the year," he said.

In an earnings call earlier this year, Foran said half of the shrinkage at Wal-Mart occurs in the food departments.

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