The circle of life. Stores fail for complex reasons → retailer quietly posts accurate analysis of its own mistakes → retailer loudly posts press release blaming shoplifters and gangs → media likes …
Insurance is a business, they don’t just pay out claims and take the loss themselves so that Target can ignore losses.
When target gets insurance for theft, it means they pay the average monthly losses (+ fees) and don’t have to deal with the ups and downs of theft happening unpredictably.
In other words, if theft actually went up a lot, Target would still be on the hook for paying for it, but it would be through higher (stable) premiums.
The way you’re describing it, shoplifting gets the theif a free item, and no one ends up paying for it. That’s a very naive view of how money works.
Insurance is a business, they don’t just pay out claims and take the loss themselves so that Target can ignore losses.
When target gets insurance for theft, it means they pay the average monthly losses (+ fees) and don’t have to deal with the ups and downs of theft happening unpredictably.
In other words, if theft actually went up a lot, Target would still be on the hook for paying for it, but it would be through higher (stable) premiums.
The way you’re describing it, shoplifting gets the theif a free item, and no one ends up paying for it. That’s a very naive view of how money works.
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And that’s a totally simplistic view of what I said. Overall, big box does well to keep theft down as to avoid paying. It’s all a big game.
“They’re all insured for these kinds of losses anyway” is a simple straightforward statement.
Insurance doesn’t mean they are protected from theft. If they actually have too much theft, closing a store can make sense, regardless of insurance.