Shrinkflation, shoplifting, and self-checkout

Target (TGT), Macy's (M), Best Buy (BBY), were hit hard by 'rampant shoplifting' and shrinkflation, according to investor and market commentator, Jeff Macke. He joined Yahoo Finance Executive Editor Brian Sozzi on Opening Bid to discuss the difficulties and errors retailer made over recent years; specifically, self-checkout. 'Self-check was just one of the great debacle in retail history. The idea that, that people can just be trusted to check themselves out of stores. Geez,' he added.

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Video transcript

Jeff, I just went to Costco, I'm picking up Tomahawks.

Tomahawk steak, man.

I mean, we're talking about 4 of freaking meat for about 40 bucks.

I mean, Target's not selling that and I think that's part of the problem.

I mean, you're going to Target, I can't get all of my shopping for food done.

I'm not surprised, I'm not wowed.

Where's this stuff at?

Target?

Uh Why are they not getting this message?

They've been on their back foot for, for a while.

The shrink hit them, huge, hit them, huge, hit them really hard.

And, and if you're the friendliest discount store that it was not a set up that, that kept them kind of prepared for that rampant shoplifting sort of spree that we had if you will, the, the, the man that it was the, the media kind of downplayed it a lot.

But, you know, again, low margin business, if you're losing four or 5% of your product, you know, one place or another, and we're seeing where it's FF in third market retail parties on online.

And so what you created was this enormous fence operation for people who can sell kind of stolen product and that made it just too lucrative to steal.

And you combine that with what society went through or we're not going to prosecute anybody.

And, and, you know, some of the areas were, were unforced, that self check was just one of the great debacles and retail history.

The idea that, that people can just be trusted to check themselves out of stores.

Shocker.

You can't shocker.

You can, oh, I'm not gonna check myself out.

Not take six items.

Yeah, it's great.