While retail giants continue to close up shop in America’s crime-ravaged cities, Costco appears to standing strong, thanks, at least in part, to a policy that grants its stores more security than U.S. elections.
“According to a recent survey by the National Retail Federation, inventory shrink, or unaccounted losses of stock, cost American retailers an estimated $112 billion in 2022, or around 1.6 percent of their total sales,” DailyMail.com reports. “And with up to 70 percent of shrink accounted for by theft, it means retailers lost approximately $78.4 billion to shoplifters last year.”
As BizPac Review reported on Wednesday, Target announced it will be closing outlets in New York City, Seattle, San Francisco, and Portland. The retail giant said the move was necessary because “theft and organized retail crime are threatening the safety of our team and guests.”
Target to shutter stores in several Dem-run cities amidst retail theft epidemic https://t.co/mfTx43JTw1 via @BIZPACReview
— BPR based (@DumpstrFireNews) September 27, 2023
Inventory losses may be crippling the competition, but, DailyMail.com reveals, Costco Chief Financial Officer (CFO) Richard Galanti told investors during a Tuesday quarterly earnings call, “Thankfully, it’s not a big issue for us.”
Following the call, Galanti told the outlet that Costco’s current rate of inventory loss is roughly ten times lower than the industry average.
So, what makes Costco stand apart?
Galanti noted that only those members who pay a fee can enter the retail warehouses, and their identities are confirmed.
“You have to show your picture ID when you come into our warehouse so the fact that it’s member-only is a positive,” he told DailyMail.com.
The design of the warehouses also helps to keep thieves at bay.
“We’ve always had one way in and one way out and people checking receipts at the door,” he said.
“[B]y strictly controlling the entrances and exits and using a membership format,” Costco stated in its 2022 financial year summary report, those inventory losses were kept “well below those of typical retail operations.”
It’s also hard to stuff items down the front of your pants or in a purse when many of the items are sold in bulk.
“Many items are larger-sized items and when you have smaller, larger value items they’re in packaging that is much bigger,” Galanti explained.
But what about Costco’s new “gold rush”?
Yes, you read that right. Costco is now selling one-ounce gold bars in its Korean stores, and they are reportedly flying off the shelves, with customers paying up to $79,000 for some of them, according to TikTok influencers.
@midlifecrisisgirl #CapCut heres the unboxing of the solid gold bars i implusively bought at Costco. #costcofinds #costcojewelry #unboxing ♬ original sound – Angel is in midlife crisis
In America, the bars are only offered online, and they are selling out faster than social media would like.
“[W]hen we load them on the site, they’re typically gone within a few hours, and we limit two per member,” Galanti told investors on the Tuesday call.
Available to the fast and determined are “two 24-karat varieties of gold bars from Rand Refinery, for $1,949, and PAMP Suisse, for $1,979,” according to DailyMail.com. “Both bars are reportedly valued slightly more than gold futures, which on Wednesday sat at $1,890.70 per oz.”
Writers and editors can be contacted at [email protected] with feedback, tips, or corrections.
Melissa Fine is the former executive editor of Casino Player, Strictly Slots, and Poker
Digest magazines. She is a UCLA graduate, news junkie, and dedicated Stargate SG-
1 fan. Melissa currently lives with her dog and two cats in a tiny town in the Sierra
Nevada foothills.
Comment
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the ∨ icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.