Add Nordstrom Inc. CEO Erik Nordstrom to the growing list of executives speaking up against the rampant theft happening across retail.
“The loss is a concern. Losses from theft are at historical highs,” Nordstrom told analysts Thursday during the company’s quarterly earnings call in addressing a question on shrinkage and, more specifically, a recent incident at its store in Canoga Park.
The Nordstrom at Westfield Topanga was the target of a flash mob robbery Aug. 12. More than 30 people flooded the store and took off with over $300,000 worth of apparel and handbags. A security guard stationed at the entrance was sprayed in the face with bear spray.
“It’s disturbing to all of us,” Nordstrom said of what happened at the Westfield Topanga location.
Nordstrom went on to say the company’s shrinkage has not exceeded plan, but has continued to rise.
“The drag on earnings just from a financial performance [standpoint], that needs to come down,” Nordstrom said. “We’ve done a lot of things and we’re looking at everything we can do to make our stores as safe and secure … that they can be, but also to address the loss.”
Nordstrom said the company is working with local law enforcement, but also called for other tactics.
“I think legislation is part of the mix, too, here that the whole industry needs to come to some better solutions on,” Nordstrom said.
Industrywide Issues
Nordstrom’s not alone in its shrink issues.
Target CEO Brian Cornell said this month the shrinkage is “well above the sustainable level where we expect to operate over time.”
“And, unfortunately safety incidents associated with that are moving in the wrong direction,” Cornell said.
Theft involving violence or the threat of it spiked 120 percent in the first five months of the year at Target stores.
Walmart and Dick’s Sporting Goods also weighed in on the growing problem of theft eating away at earnings.
In the Los Angeles area earlier this month the Yves Saint Laurent store at Americana at Brand in Glendale was targeted by a flash mob of robbers that took off with some $300,000 worth of product. Other retail robberies this month included an incident at the Gucci store at Westfield Century City, Versace at the Beverly Center and Nike’s East L.A. store.
The Los Angeles Police Department formed an Organized Retail Crime Taskforce Monday to address the wave of flash mob retail thefts that have grown increasingly common in the area.
LAPD said the taskforce arrested 11 people as of Wednesday in connection with robberies at the Nordstrom Topanga, Versace store at the Bevelry Center, Warehouse Shoe Store in Highland Park, and Yves Saint Laurent at Americana at Brand.
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