Gerald Storch, CEO of Storch Advisors and former CEO of Toys R Us, responded to a new report that finds shoplifting has increased 24% across the US so far this year.
The shopping platform’s CEO believes high crime rates in US cities are contributing to customers flocking to Amazon.
Increasingly unpleasant experiences visiting urban pharmacies are driving many shoppers to buy essentials online, Amazon Chief Executive Andy Jassy said at an investors conference on Thursday.
Jassy said going to an urban pharmacy “can be a pretty painful experience, with a lot of products locked at the back of the shelves, you have to press a button to get someone to open the shelves, and there’s shoplifting going on in the store.”
Shoplifters cite high inflation and the economy as the top reasons for stealing.
Amazon CEO Andy Jassy arrives at the Los Angeles premiere of the Amazon Prime Video series “The Lord of the Rings: The Ring of Power” held at Culver Studios in Los Angeles, California. (Michael Buckner/Variety via Getty Images/Getty Images)
“The combination of what’s happening in the real world and how much we’ve improved the pharmacy experience is what’s swaying a lot of customers,” he continued.
Amazon launched its pharmaceutical services in late 2020, and business has only grown as the website continues to expand its offerings beyond its initial limited inventory.
Rising crime in urban centers over the past few years has forced pharmacy chains like CVS to close stores or beef up security, including locked shelves and other barriers.
Organized retail crime “particularly severe” in California, industry experts say
At Duane Reade drug stores and pharmacies in New York City, deodorant can be seen locked in the back of cases to prevent shoplifting. (ANGELA WEISS/AFP via Getty Images/Getty Images)
The problem for chain stores in many cities is that local governments are not very thorough in punishing shoplifters.
CVS CEO Karen Lynch The company said earlier this year that it was working with the attorney general to stop the brazen retail theft that is rampant in the industry.
In an interview with the CBS Evening News in March, Lynch explained that even the cheaper items are locked because thieves could come in and “raze the whole counter.”
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Photos at a CVS Pharmacy in Washington, DC, showed rows of shelves nearly empty after widespread thefts. (FOX 5/Fox News)
She recalled seeing footage of a car crashing into the front entrance of a CVS store at night, where six men jumped out and “ransacked the entire store,” she said.
The company has implemented new security measures over the past few years, but Lynch said it is “working very closely with law enforcement and the attorney general.” Not prosecutedand it needs to be that way.”
