In a recent interview with CNBC, Ulta Beauty CEO Dave Kimbell discussed the issue of organized theft and the role that e-commerce sites play in facilitating the sale of stolen goods. Kimbell expressed concern about the scale of organized retail crime rings and pointed out that online marketplaces provide a larger platform for criminals to sell their stolen products.
Kimbell acknowledged that while it is difficult for consumers to determine whether a product they are purchasing online is stolen, it is ultimately the responsibility of online marketplaces to ensure that they are not facilitating the sale of stolen goods. He emphasized that this phenomenon is primarily an online issue and does not occur in brick-and-mortar stores.
Ulta Beauty has been a victim of organized retail crime, with millions of dollars worth of cosmetics stolen from their stores and resold on platforms like Amazon. Kimbell called for enhanced measures on e-commerce sites to prevent the sale of stolen goods, stating that there are tools and capabilities available to take more action against these crimes.
Amazon, one of the largest e-commerce platforms, declined CNBC’s request for an interview but stated that they have “zero tolerance for the sale of stolen goods.” The company invests significant resources in combating fraud and works with law enforcement and other retailers to stop bad actors.
The extent of organized retail crime is difficult to quantify, as not all instances are reported or tracked. However, according to the most recent National Retail Federation survey, the total value of goods stolen in external theft instances amounted to $40.5 billion in 2022. Ulta Beauty, like many other retailers, has started addressing retail crime as a problem but has not provided specific figures on how it impacts their business.
Ulta Beauty has taken steps to combat retail crime, such as locking up fragrances in stores due to their high value and ease of reselling. However, Kimbell noted that organized retail crime has worsened in recent years and expressed concern about the increase in violence associated with theft.
Retail executives are increasingly worried about the safety of their employees, with 81% reporting an increase in violence and 28% stating that they have closed specific locations due to crime. Ulta Beauty has not yet closed a store because of crime but is dedicated to ensuring the safety and well-being of its 50,000 employees across 1,400 stores nationwide.
In conclusion, Ulta Beauty CEO Dave Kimbell’s interview sheds light on the issue of organized retail crime and its impact on retailers like Ulta Beauty. Kimbell calls for stronger measures to prevent the sale of stolen goods on e-commerce sites and emphasizes the importance of ensuring the safety of employees. The extent of organized retail crime remains a challenge to quantify, but it is clear that it is a growing concern for retailers across the country.
