Former Home Depot CEO Bob Nardelli recently appeared on Fox Business’s “Cavuto: Coast to Coast,” where he slammed the Biden administration for “fueling a lawless society” where business operations are hindered by rampant crime.
Nardelli offered a gloomy outlook for the future of American society if the country can’t get ahold of the rising crime rates. “This environment under this administration is fueling a lawless society and we’ve got to get this back under control. I fear where this is headed,” the former CEO told Neil Cavuto.
The former executive addressed how retail theft in many areas has become so substantial that it seriously impacts many companies’ bottom lines. Nardelli pointed out several major retailers experiencing a “shrink,” which is a euphemism for theft, he claims.
“You just look at the list of retail companies, whether it’s Home Depot, Lowe’s, Macy’s, Dick’s, and then you look at Target, they’re now projecting $1.2 billion, again, the polite word is shrink. The reality is its theft,” Nardelli stated.
As Nardelli points out, all things eventually have to be paid for. However, if the rule of law continues to be subverted and companies keep absorbing these losses in inventory, they could subsequently pass this on to the consumer.
The former Home Depot CEO predicts retailers could increase prices to offset their losses from retail theft. “Who’s going to pay for all this? Somebody’s got to pay. It’s you and I and the average consumer are going to pay higher prices for goods to offset the cost of people stealing,” Nardelli said.
Nardelli also pointed out that the rise in crime has cost Home Depot far more than just profitability. The former executive explained that criminals have even killed employees who work at the home improvement store. “Not only crime, but unfortunately, Home Depot lost two associates. They pushed an elderly man to the floor. He died. A security guard, shot,” he said.
Unsurprisingly, lawlessness in urban America has put a serious damper on the retail economy. Aside from companies losing money from stolen inventory, criminal activity can deter consumer foot traffic in key retail environments. As crime goes undeterred, shoppers have no interest in frequenting locations that could jeopardize their safety.
The once-great city of San Francisco is experiencing this firsthand. Over the past couple of years, the California city has seen a noticeable trend in prominent businesses closing up shop and leaving downtown San Francisco. Many have blamed rampant crime in the Bay Area as a major reason for this.
The American Tribune recently reported on a historic department store in San Francisco that announced it may be forced to close its doors due to crime and a “litany of destructive policies” ruining the city. The owner of luxury department store Gump’s outline how his business is suffering as a result.
“Gump’s has been a San Francisco icon for more than 165 years,” owner John Chachas began his open letter. “Today, as we prepare for our 166th holiday season at 250 Post Street, we fear this may be our last because of the profound erosion of this city’s conditions.”
“Equally devastating have been a litany of destructive San Francisco strategies, including allowing the homeless to occupy our sidewalks, to openly distribute and use illegal drugs, to harass the public and to defile the city’s streets,” he explained, labeling it a “tyranny of the minority.”
Nardelli spoke about the theft problem in this video with CNBC:
Photo screenshot from YouTube video
"*" indicates required fields