Walmart Manager Opens Up His Own Business… With $250K Worth Of Allegedly Stolen Items

As avaricious as Walmart is, we’re sure that the company would be at least mildly amused at the idea of one of its store managers taking the initiative to begin his own business selling similar products. But we’re guessing that Big W isn’t exactly thrilled if said manager uses $250,000 worth of stolen Walmart property as his inventory.

Following an investigation, a Walmart store manager in Las Vegas has admitted to heisting $10,000 worth of electronics from his former employer and selling them on the internet. But the retail giant believes he is responsible for around 25 times that amount of theft over a period of two years.

According to reports, the 31-year-old former manager would stash the wares — computers, GPS systems, video game consoles, TVs — in a rented storage unit before sending them out to customers who had ordered them online.

When the police searched the storage unit, they found 54 GPS systems and a binder detailing the 150 or so orders he’d shipped out in the two months before his arrest.

Ex-Walmart manager jailed in theft of $250,000 in goods [Las Vegas Journal Review]

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  1. Platypi {Redacted} says:

    Sure Walmart, crush the small businesses! When are they going to catch a break! Jeez!

  2. blogger X says:

    That manager obviously was not getting his receipts checked…

  3. dragonfire81 says:

    I bet if he’d been doing this on a smaller scale he probably would never have gotten caught.

    • The cake is a lie! says:

      That actually is fairly small scale. That is only walking out with about $2600 per week if he was doing this for two years. He could have been doing that per day if he wanted to, and there have been cases where far more has walked out of stores due to manager thefts.

      • George4478 says:

        There is no way I can consider stealing $250,000 from a Walmart as “fairly small scale”.

        • Megalomania says:

          Walmart’s gross Q2 revenue in 2010 was $99,850,000,000. Give or a take a few million. In the two years that he was doing this, they made around $750,000,000,000. That makes $250,000 00.000033% of their revenue over that period of time. By comparison, if you make $50,000 per year, that’s about $1.67.

          While he’s still a scumbag and prosecuting him is entirely appropriate, this is – as an isolated incident – absolutely negligible for Walmart

          • These Are Not My Pants says:

            Sorry, but my mind just exploded.

            • Verucalise (Est.February2008) says:

              I had to do a double check read to understand that… a few more comma’s would of been helpful to seperate different number sequences, but very well put. Who is going to miss $1.67 out of their $50,000 a year income?

              • JayPhat says:

                Their market loss prevention officer at inventory time, that’s who. Or at least should have.

                Sorry, let me rephrase my initial statement.

                The average supercenter does between $40 million and $80 million dollars per year. This being a store in Las Vegas, it was probably in the $70 million range. The average shrink goal for a Wal-Mart store last I knew was .8% of retail sales. In a high theft area such as a metropolitan store, that number can run around 1.2% to 1.5% of retail sales without breaking a sweat. This guy was stealing an amount equivalent to .33% of retail sales alone. How someone couldn’t see this to begin with is insane.

          • JayPhat says:

            Well, the average store can range anywhere from $40 mil to $85 mil. This being vegas, I would say high $70′s is more like it.

            With that in mind, thats .33% alone of the stores shrink. Last I remember, being under .8% was the goal. In a high theft area you can expect closer to a 1.2-1.5%, but if this guy ALONE was taking that much, then it was gonna stick out like a red flag.

        • jefeloco says:

          It’s all about perspective. When I used to work at the local Cabela’s we had a guy try to take a $250,000 shotgun out of the gun library. It would have killed the day’s loss numbers but the quarter’s numbers could still have been in check.

          That based on a 3% quarterly loss averaging around $243,000 at this particular store with the shotgun costing the store approximately $190,000.

          Got to love rare, hand engraved shotguns!

          • ludwigk says:

            Wait, are you serious? A quarter million for a rare gun? I don’t think I’ve ever been in a store of any kind with anything on sale for that much, ever.

  4. smartmuffin says:

    NEVER keep your accounting records in your home, or with the contraband. Has this guy not seen any mafia movies ever or something?

  5. Loias supports harsher punishments against corporations says:

    The only thing more moronic than him actually doing this is that is took Walmart 2 years to figure it out.

    Remenber everybody, receipt checking protects Walmart from customers’ stealing but does nothing to prevent its own employees from stealing.

    • DanRydell says:

      Don’t you ever get tired of being wrong?

      Receipt checking is primarily intended to catch theft in which an employee works with an accomplice who poses as a customer. The employee intentionally rings up the accomplice’s items incorrectly so he pays a lower price.

      Receipt checks obviously only work on this specific type of theft, which accounts for a large percentage of retail theft.

      • FredKlein says:

        Receipt checks obviously only work on this specific type of theft

        I’ve never seen the receipt checker actually count the items in the bag/cart and compare the number to the lines on the receipt, much less check the prices (there’s a similar scam where the customer brings up an expensive model of something, and his friend the cashier scans the barcode of a cheaper model).

        IOW, receipt checking _doesn’t_even_ work on this specific type of theft. So, why do they do it?

      • coren says:

        If they only check to see if I have a receipt and not against the items in my cart, then it can’t possibly be for that. Maybe you are tired of being wrong?

  6. zegota says:

    This seriously sounds like the plot of an episode of The Office.

    • Platypi {Redacted} says:

      Obviously something Ryan would be running.

    • YankeeSR23 says:

      My thoughts would be that Creed would have done something like this. He likes to steal (Casino Night), and he sold off a bunch of stuff when Scranton branch thought they were closing (Branch Closing).

  7. u1itn0w2day says:

    I thought Walmart was known for it’s state of the art supply chain which would include inventory/record keeping. So how the heck did this guy accumulate something like 54 GPS units before an investigation/arrest? And yet this is the same Walmart who hires ex CIA agents to spy on it’s employees to squash investigations on Chinese factories or fire memo leakers/bloggers. But you can still rob the place blind.

    Hmmm, just think: a employee/manager who really doesn’t care about a ‘great’ career in retail management @ Walmart. No attitude or resentment there, nah…

    • The cake is a lie! says:

      It is possible he was stealing them before they were checked into inventory. Having worked in receiving for walmart in the past, I can tell you it wouldn’t be hard if you had the right people helping you. I’m surprised they aren’t going after his accomplices in this. The manager wouldn’t be able to steal all this stuff alone without getting noticed by employees.

      • u1itn0w2day says:

        That’s what I was thinking. Someone had to at least turn the other cheek if not participate. But still doesn’t Walmart HQ have a record of what they sent to the store? If you watch the CNBC documentary on Walmart they almost boast about their real time inventory supply system. So if Walmart is that computerized how come someone didn’t noticed the sales of GPS units dropped off.

      • JayPhat says:

        I don’t understand this. It comes from the warehouse, its on the warehouse manifest. He had to either be taking it directly as it came off the truck or after it was in lock-up. My guess is that it was as it was coming off the truck. I have seen stores where the high dollar electronics were required to be put in managers office to be locked up immeadiately afterwards. But it’s still strange. The inventory has got to be corrected at some point, and if it’s being changed that often, someone is going to catch on.

  8. Erika'sPowerMinute says:

    Wow, their loss prevention must have shit for brains.

    • Brie says:

      Well, he was an insider.

      I knew a cop who lateraled between cities, and while waiting for the second job to finalize he took a temporary gig overseeing LP in WM. He said most of his job involved internal shrinkage by the employees themselves.

      • c_c says:

        “internal shrinkage” sounds like a terrible terrible medical condition.

      • Erika'sPowerMinute says:

        Yeah, I don’t doubt it. So LP should have been on this in like, five seconds.

        My husband is a retail manager; his LP department had an associate who improperly issued herself a $25 gift card on tape and being interviewed about it within a week of the incident.

        For this to have gone on this long with this high a dollar amount means the money they’re paying their security department might as well have been flushed down the john.

  9. Rose says:

    They’re not ‘stolen’! They ‘fell off the back of the truck’!

  10. There's room to move as a fry cook says:

    A local discount shop was raided a few years ago. Everything was buckshee, They hired a regular daily crew to shoplift HBA (health/beauty aids, soaps, deodorants,,,) from Walmart, Target, Walgreens etc…

  11. Portlandia says:

    I can imagine a store the size of a Las Vegas Walmart, this type of inventory going missing over a couple years period could have easily blended in with normal inventory shrinkage.

    NOW, how they missed 54 GPS units or TVs is beyond me unless he was hiding the shrinkage in inflated inventory. Still a dumb move.

  12. osiris73 says:

    I imagine THIS is why they think they’re getting so much stuff stolen by customers and checking our receipts.

    Remember, like my 1st grade teacher said, if you point your finger at someone, there are 3 more fingers pointing back at you.

  13. Grabraham says:

    And remember kids… To protect our nation form the evil terrrists if you see something say something!! http://consumerist.com/2010/12/homeland-security-walmart-team-up-to-fight-terrorism-in-the-checkout-line.html

    We are instructed by the Department of Homeland Security to report suspicious activity to the police or A WALMART MANAGER.

  14. u1itn0w2day says:

    Exactly how powerfull are store managers at a Walmart?

    Perhaps the only time an employee deals with a store manager it’s to be fired so perhaps this put look the other way in the witnesses/employee’s minds.

  15. Reading_Comprehension says:

    I’d shop there…

  16. HighontheHill says:

    And some wonder why so many of us are completely against having our receipts checked, the real left occurs from within…

  17. KingPsyz says:

    Heh, I shop there often… Very interesting…

  18. bananaboat says:

    Walmart has always said their largest theft dollar wise is from employees. Great business model! Underpay so your employees steal from you and open their own low price store! The manager in one of their rural stores nearby was sleeping with several of his employees to retain their employement and “advance”. This went on for years before any action was taken.

    • Fred Garvin says:

      I wouldn’t agree that underpaying employees is the reason or any type of justification for the employee theft.

      I WOULD say that offering many low-paying jobs without security or benefits in a place with big-ticket electronics is a sure-fire way to attract the types that would steal, scam customers, or go on power trips when checking receipts.

      Then again, that same business model is one that also attracts customers looking to pull a fast one. I think it’s reasonable to say Walmart made their bed with cheap domestic labor and linens made in India and China.

  19. gman863 says:

    Having worked in retail management for many years, 80-90% of a typical retailers “shrink” (losses) are from internal theft issues.

    Some of the tricks I’ve seen employees busted for:

    * “Accidentally” reprogramming the price of an item in the UPC scanner database (say, a $498 TV) to $4.98 and having accomplices purchase all 20 in stock immediately.

    * Adding or substituting items when warehouse or dock customer pickup is required. At Circuit City, an inventory count showed the store short 5 $3000 60″ Hitachis and over 5 on $59 Brocksonic 13″ TVs. Ooops. The video footage review caught two warehouse homeboys who were “upgrading” purchases for friends.

    * Hiding smaller items in larger ones. A standard size washer or dryer tub holds 14 towels, 10 car stereos or four notebook PCs. In Wal-Mart, a $49 vaccum cleaner box has room enough for a shitload of DVDs or watches. Since the receipt checking nazis don’t weigh the box they don’t have a clue.

    I could go on; however I don’t want to turn this into “Ripping Off Retail for Dummies”.

  20. PortlandBeavers says:

    They always get caught when they get greedy and steal a lot, forcing everyone to notice. I’ve always wondered if this is just the inevitable course that every employee theft leads to, or whether there are thieves that go on working for decades, supplementing their incomes by stealing, say $50 or $100 per week. When I worked in retail, a few employees left the place in cuffs. But the most common theft was employees passing their friends’ merchandise across the scanner without scanning it, aka “sweethearting.” Most of them never got caught because they didn’t work there too long and also because they never tried to turn it into a major rip-off. They just helped their buddies out by stealing $40 of food at a time. They weren’t taking $1,000 worth of stuff or anything.

  21. The Moar You Know says:

    100% profit margin. The man is a captain of industry, a giant amongst businessmen, the perfect capitalist.