Hello Friends,
It has been another busy news cycle over the past month. The election, the war with Russia, North Korea missile launches, the China cold war and the list goes on. Retail theft has also continued to be in the news. Many of these news stories have a huge impact on business sales and business profitability. These types of news stories have a negative impact on the economy as the anxiety of the population increases.
Continued Stessors for Businesses
Just last week the Fed raised interest rates another 75 basis points. This will put additional stress on personal and business lines of credit. All of these added stressors will create an interesting Christmas Holiday shopping season. Will customers be spending as normal? Or will there be a pull back? It is too early to determine how all of this will impact the retail segment and their suppliers. With all of the headwinds facing retailers this year it would not be a surprise to see retailers close down locations that are underperforming or are simply unprofitable due to the increase of retail theft.
Retail Theft On the Rise
Retail theft has become one of the top reasons that various retailers are closing stores or greatly reducing hours. SAM Auctions works with a handful of retailers that have had to close locations due to this crazy new phenomenon. Retail theft has been around since the early days of retail. Over my lifetime I have seen many retailers attempt to reduce retail shrink. Security Cameras, Electronic Tags, On-Site security companies. Currently many retailers are working with their local police departments to increase patrols or simply requesting in-house police presence in their high theft stores.
This past spring I was in one such retailer in the San Francisco area. I met a police officer that was sitting in the store. I had a conversation with him and asked if his presence in the store prevented theft? He smiled and said “in some cases yes”. However, he also stated, “I am not allowed to confront anyone attempting to take unpaid items out of the store.” I asked him why that was and he concluded that “You are allowed to take items out of the store as long as the items are under $999.00.” We live in times where retail theft is no longer considered a crime. Many retailers are feeling this pain and closing the doors permanently.
We Can Help!
If you are a retailer or grocery store looking to close or relocate your store, SAM Auctions has teams of professionals ready to help you sell your fixed assets. Our proven systems have helped hundreds of retailers over thousands of sales obtain the very best return on investment over the years. Contact us today to find out more! You can also click here to browse the catalogs of upcoming auctions!
