Shrink (theft) continues to get worse:

Q1 2024 Earnings Transcript:

"Shrink continues to be our most significant headwind and with 59 basis points worse in the first quarter compared to prior year. As Todd noted, we are taking multiple actions aimed at reducing shrink, and I'll discuss our expectation for this headwind for the remainder of the year in just a bit.

Before I turn the call over to Kelly, I want to provide a brief update on our shrink reduction efforts, including the changes to our self-checkout strategy that we announced in March. Shrink continues to be the most significant headwind in our business, and we are deploying an end-to-end approach to shrink reduction across the organization, including efforts in our supply chain merchandising and within our stores to help combat issues around shrink.

It would be nice to know exactly what the problem is, without the 'shrink' euphemism. Where is the shrinking happening? They mention supply chains, inventory and at checkout, which are all very different problems from each other. And if outright robbery (a holdup, for instance, or someone just brazenly walking out the door without paying) a big part of it, or is putting something in your pocket, or is it collaboration between the client and the cashier, or is it not scanning things at checkout, or what? Some of these have easier solutions than others, but if it is cultural slippage, where stealing is becoming morally and socially acceptable, or trivialized (police refusing to prosecute small crimes), then it might mean a pretty serious impairment to the business model.

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