Following French retailer Kiabi, Lululemon hit by organized theft of one million dollars

Business

Lululemon Store. Credits: Pexels

After the 100 million euros embezzled by the former treasurer of Kiabi, it is Lululemon's turn to be the victim of a million-dollar scam orchestrated by a couple from Minnesota.

While Aurélie B. allegedly abused her role to empty Kiabi's accounts, Lululemon thieves set up an ingenious system to steal merchandise from the store.

Two cases that perhaps highlight a resurgence of malpractice in the fashion industry. And which would merit asking the following question: is the fashion industry particularly exposed to fraud and poor workmanship? What reasons could explain this trend?

The Lululemon case: the modus operandi

A Connecticut couple, Jadion Anthony Richards and Akwele Nickeisha Lawes-Richards, are accused of running a scheme to rob Lululemon stores across the United States. Their method was simple but effective: by switching price tags, they were able to steal expensive items without setting off an alarm. As a result, the couple is accused of stealing nearly 1 million dollars worth of merchandise from Lululemon stores in Minnesota, Colorado and Utah.

Lululemon's riposte

Lululemon's asset protection team, alert to irregularities, had been monitoring their activities for months. This close collaboration with law enforcement helped dismantle their network and arrest the suspects.

The invisible costs of organized theft

With the growing financial losses caused by these frauds, companies are forced to invest massively in advanced security systems, specialized teams, and even partnerships with law enforcement. We can also see a similar trend emerging in France in supermarkets, with food products. For consumers, these costs are often reflected in the form of price increases.

Kiabi: an internal diversion

Unlike the couple who specifically targeted Lululemon stores, Aurélie B., former treasurer of Kiabi, allegedly took advantage of her privileged position within the company to embezzle 100 million euros of funds over a long period.

Fashion fraud: a worrying resurgence?

After the Kiabi treasurer accused of embezzling 100 million euros, and now the couple behind a million-dollar scam targeting Lululemon, the fashion industry seems to be becoming fertile ground for small and seasoned fraudsters.

The question then is: is the fashion sector really more targeted? Is it becoming a breeding ground for poor workmanship? What evidence could support such questions?

What would justify an increase in poor workmanship?

A first explanation may lie in the significant amounts that can be at stake, whether in terms of embezzled cash or valuable goods. High-end or premium clothing and accessories, for example, represent prime targets: they are easy to sell on parallel markets or online.

Other potential explanations include the complexity of supply chains. With a supply chain that spans multiple continents, the fashion industry is vulnerable to errors and abuses. The proliferation of subcontractors makes it harder to trace products and identify those responsible in the event of a problem.

Then, the pressure on costs and deadlines. Fast fashion has established a frenetic pace to reduce production times and costs. This constant urgency increases the risks of poor workmanship, particularly in manufacturing and quality control, and offers exploitable loopholes for fraudsters.

Should we say that there are flaws in the internal governance of certain companies? That there is an absence or weakness of control mechanisms? The accusation is a bit harsh, especially since we have recently observed internal malfeasance occurring within a large listed group in France.

Finally, we will obviously mention the emergence of new digital opportunities. In particular, the rise of online sales and second-hand platforms has multiplied the entry points for fraudsters, ranging from counterfeits to the resale of stolen products.

In conclusion, the fashion industry finds itself at a crossroads where speed, value and complexity create an environment where poor workmanship thrives. To stem this trend, companies would certainly benefit from investing in innovative solutions that enable traceability, or the detection of anomalies in their operations.

This article originally appeared on FashionUnited.FR, translated and edited to English.

It was translated using an AI tool called Gemini 1.5. .

Kiabi

Lululemon