Description: According to Clint Mahlman, CEO of pharmacy chain London Drugs, despite a rise in violent shoplifting incidents in Vancouver, the business has no plan to close any stores in the city. “We are at a crisis point in retail,” Mahlman noted. The losses from theft amounts to “tens of millions” per year, and the safety of staff is a concern as well, given that workers have been physically assaulted, including with hatchets and knives.
Date: October 18, 2023
1) Have you ever witnessed a violent theft or shoplifting incident at your university town?
2) If you were a senior financial officer at a firm like London Drugs, what type of information would you assemble to help executives make decisions on whether not to close locations?
3) Section 7.1 of Wiley’s Financial Accounting: Tools for Business Decision-Making offers descriptions of several types of internal control activities that businesses can employ. Which activities could be considered for a retailer facing theft problems and the related threats on employee safety?