Lululemon CEO Fired Employees Who Confronted Thieves As They Were Stealing: "It's Only Merchandise"

Ever since the George Floyd riots of 2020, it has become more and more common to see petty theft go unpunished in various cities around the country. San Francisco, for example, decriminalized any theft under $950, which has resulted in 12 Walgreens locations closing down for good. Multiple videos have surfaced across the internet that show thieves running into various clothing or drug stores, only to quickly steal as many items as they can hold in their hands as they run out the front door. One incident in Atlanta has gone viral this week, showing a Lululemon store being ransacked by thieves—but the employees who tried to stop them were the ones who were punished.

Lululemon CEO Fired Employees Who Confronted Thieves As They Were Stealing

Calvin McDonald, the CEO of the athletic wear brand Lululemon, decided to terminate the employment of two workers who called the police while thieves looted a company store. The employees, according to McDonald, violated a key company policy.

"We have a zero-tolerance policy that we train our educators on around engaging during a theft," McDonald said on CNBC's Squawk on the Street. The term "educators" refers to Lululemon workers. These two employees were dismissed, not for notifying the authorities, but reportedly for their direct confrontation with the thieves at the company's Atlanta location.

Jennifer Ferguson and Rachel Rogers, the dismissed workers, acknowledged they were aware of the company's non-engagement policy when they confronted the criminals, who were stuffing clothes into bags, according to the New York Post. The company released the two employees without a severance package.

Ferguson, a former assistant manager, can be heard in a viral Twitter video, challenging the looters. “No, no, no, you can march back out,” she asserts. However, the thieves brushed off her admonition and proceeded to loot additional items. The women watched the thieves escape, then contacted the Gwinnett Police Department, which apprehended and charged the suspects with felony robbery.

However, McDonald defended the non-engagement policy, citing the safety of employees. "It’s only merchandise," he stated, explaining that employees should notify management via scanning a QR code in such circumstances. He emphasized that employees are "trained to step back, let the theft occur, know that there's technology and there's cameras, and we're working with law enforcement."

According to McDonald, the women "knowingly" violated the company's policy, including following the thieves outside the store. Instances of employees being endangered, and in some cases killed, during confrontations with looters underscore the importance of this policy. Apparently, they were supposed to simply let the thieves walk out with no confrontation whatsoever.

“The policy is to protect them,” McDonald said. “But we have to stand behind the policy to enforce it.”

Lululemon Athletica Inc., commonly known as Lululemon, is a Canadian multinational athletic apparel retailer. It was founded in 1998 in Vancouver, British Columbia, by Chip Wilson, initially as a design studio during the day and a yoga studio at night. The company launched its first standalone store in 2000, selling yoga-inspired clothing and accessories.

The brand is often categorized as luxe athleisure due to its relatively high price point. According to the latest prices of Lululemon between 2019 and 2023, the average price of a pair of leggings is $100. Lululemon's target consumer typically is an active, health-conscious individual who values comfort, quality, and style. The brand has made it clear that it supports progressive causes like the LGBT agenda, BLM, and more.

The CEO's stand is an echo of a wider debate about employee safety versus active intervention during thefts. In a time where retail theft is increasing, companies are increasingly looking for ways to protect their employees. McDonald's decision, though controversial, is supposed to place an emphasis on employee safety over merchandise protection. However, it remains to be seen how this incident might impact the company's public image or its internal employee morale.

There is already much criticism online about how Lululemon's CEO is more concerned with appearing to be inclusive and compassionate toward people who are stealing from the company rather than administering justice to criminals. While McDonald claims he wants to protect employees, many argue that he's actually putting all his employees and Lululemon locations in much danger by sending the signal that there will be no repercussions for stealing and looting. If anything, he is ruining the brand's image, not making the stores a safer place for his employees. While Lululemon has always been known as a progressive brand, this decision from the CEO has still been surprising to witness.

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