High Wages, Store Layouts, and Receipt Check-ins Discourage Thieves and Serve as a Secret Weapon in the Fight against Competitors

Costco is not the ideal place to shoplift.

Between the chain’s members-only policy, the Costco employees assigned to scrutinize your receipt at the door, and the bottlenecking that can occur at the warehouse’s exit, thieves have a few factors working against them.

That’s not to say that theft doesn’t occur at Costco; stealing is a reality throughout the retail world. All retailers experience inventory shrinkage, the term for merchandise gone missing due to shoplifting, errors, or employee theft.

- Sponsors -

But Costco seems to have a distinct advantage over its rivals when it comes to shrink. CFO Richard Galanti told Barron’s Andrew Bary that the warehouse chain’s shrinkage amounted to 0.11% to 0.12% of sales. That’s significantly lower than the 1.33% of sales that retailers lost to shrinkage in 2017, as estimated by the National Retail Federation. So what sets Costco apart?… Business Insider

Stay Updated

Get critical information for loss prevention professionals, security and retail management delivered right to your inbox.