September 11, 2024
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Can a NY State Law Mandating Panic Buttons Help Curb Retail Theft?
With retail theft still on the rise, the state of New York has mandated a new law that requires retail stores to install functioning panic buttons based on certain criteria.
In 2023, reports highlighted a significant rise in retail theft, with major retailers like Target and Home Depot experiencing substantial losses that they claimed were due to shoplifting, flash mobs, and organized crime. The National Retail Federation (NRF) noted a 19.4% increase in theft-related losses at the time, from $93.9 billion in 2021 to $112.1 billion in 2022. Law enforcement agencies responded by increasing funding and efforts to combat retail crime, while retailers sought more police support and implemented new anti-theft measures.
For example, in June, TJX Companies began equipping security guards at select U.S. stores with police-style body cameras as part of its efforts to combat the increasing instances of shoplifting.
While retail theft is recognized as a serious issue, there has been debate over whether it is being overstated to cover up other business challenges or strategy failures. Overall, the escalation of theft incidents, including flash mob robberies and dangerous confrontations, indicated a troubling trend that needed attention.
A recent survey by LendingTree found that shoplifting has become a common response to economic hardship, with 23% of Americans admitting to stealing. The survey of 2,000 U.S. consumers revealed that 90% of recent shoplifters were motivated by inflation and the high cost of living, with many citing unaffordable prices and financial necessity as reasons for their actions.
The increase in retail theft has led to concerns about its impact on businesses and communities, with some stores closing due to the problem. In response, major retailers like Target and Walmart are lowering prices on everyday items to help alleviate the financial strain on shoppers.
And now, major retail stores throughout New York will be mandated to install panic buttons for their employees, following Governor Kathy Hochul’s signing of the Retail Worker Safety Act (RWSA) last Thursday. This legislation, designed to enhance safety measures for retail workers, will take effect on March 1, 2025, with panic buttons required to be in place and functional by Jan. 1, 2027, according to Fast Company.
Specifically, this act will apply to any store in New York that “sells consumer commodities at retail and which is not primarily engaged in the sale of food for consumption on the premises,” which would include stores like Costco and Target. It also affects any retailers that have 10 employees or more, and for businesses with 500 or more team members across the nation, panic buttons must be accessible throughout the workplace — though mobile phone-based buttons are allowed.
As reported by Reuters, retail unions advocated for the RWSA following high-profile shootings in the state and amid claims from some retail executives of rising retail crime — a claim that has faced some dispute. Additionally, the New York Police Department shared that New York City has recorded over 40,900 retail theft complaints this year, marking a 2.7% increase compared to last year.
However, not all parties involved support the new law. Walmart, the NRF, and the Food Industry Alliance of New York State (FIA) have all previously resisted the RWSA. “Walmart argued against the panic button idea, citing concerns about the likelihood of false alarms. Others expressed worries about the associated costs,” according to Reuters.
As retail theft rises, New York’s new mandate for panic buttons aims to boost worker safety amid growing crime. This law highlights the broader challenge of balancing immediate safety measures with addressing the root causes of theft, which are often driven by economic hardship. While the panic buttons are a step toward protecting employees, they also raise questions about whether such measures can effectively tackle the deeper socio-economic issues fueling retail crime. The success of this law may hinge on finding a comprehensive approach that addresses both the symptoms and the underlying causes of theft.
BrainTrust
Georganne Bender
Principal, KIZER & BENDER Speaking
Cathy Hotka
Principal, Cathy Hotka & Associates
Christopher P. Ramey
President, Affluent Insights & The Home Trust International
Recent Discussions
Discussion Questions
How can retailers effectively balance immediate security measures with strategies to address the deeper socio-economic issues driving retail theft?
Given the rise in theft-related losses and concerns about whether these incidents are being exaggerated, what are the best ways to accurately measure the true impact of retail crime without misattributing broader business challenges?
As economic hardship drives more people toward theft, what role should retailers and policymakers play in addressing the root causes of financial distress, and how can these efforts be integrated into existing retail security practices?
Poll
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Having a panic button that calls the police is useful and it provides retail workers with some peace of mind. However, the real solution to retail crime is to prosecute those responsible for stealing or being violent to staff. Until states and local authorities do this, and do it routinely and consistently, panic buttons will remain little more than a band aid over a gaping wound.
In addition to panic buttons that lead to high priority response from law enforcement, I think retail theft should be made a federal crime governed by RICO (the smash and grabs are organized, and stolen merchandise sold across state lines), that would ensure severe punishment whch would act as a deterrent. economic hardship is no excuse for destructive, unlawful behavior.
It’s the guns. If cops won’t even try to stop children from getting shot up in their classrooms, they won’t try to help at Walmart. Until we get real gun reform, it doesn’t matter if retail theft gets prosecuted more aggressively or not, because no one wants to take the chance to stop the criminals – not the cashier, not the store manager, and not the police.
We had more violent crime, by far, in the 70s and 80s, but the paralysis in fighting crime kicked in once the Assault Weapons Ban was not renewed. It’s the freakin’ guns.
I think this shows the value of competition: no longer does California have a monopoly on the “Dumbest Law of the Year” Award. Lacking any mention of how this functions, or even what its supposed to do, I can only hope it’s not as worthless as I imagine it to be (but there’s a lot of leeway there!)
One problem retailers have is lack of timely response from law enforcement, and sluggish prosecution by the courts. Do we expect a panic button to fix those issues?
Expecting retailers to fix the deeper socio-economic issues that drive retail theft is absurd. This law suggests that politicians have decided to place the issue’s onus on the victim’s back.
It would be fascinating to know who thinks these incidents are being exaggerated. I’ve worked with many hundreds of retailers. I’ve never known a retailer who called the police for sport.
Retailers pay taxes so the police can protect them. Their role should be to call the police to arrest those who attempt to steal from them. Policymakers should ensure there are enough police and jails to protect retailers, retailer’s customers, and the general populace.
Retail theft isn’t going away until communities get serious about enforcing laws.
Funny story: I ran a specialty store on Michigan Avenue in Chicago in the late 70s that was equipped with a panic button at the register. One day a man came in and was acting weird; suspicious creepy weird. I watched him for a while and then hit the panic button to summon the police. Turns out he was a special mystery shopper sent specifically by the corporate office to shop city stores. The powers that be weren’t happy with me until I said the last time I looked, smelling women’s garments while staring at female associates wasn’t on the Mystery Shopper form.
That panic button came in handy several times when we were hit by groups of violent shoplifters. They may not solve the bigger problem, but I am willing to bet that people who work in stores that have panic buttons feel just a little bit safer and that’s a good thing.
Dear Victims of Crime in NY,
We have concluded, in our infinite wisdom, that it is your fault. Please take corrective action to help us combat the crime that you have caused. And please be patient, we are currently experiencing a shortage of police officers because no one seems to want that job anymore!
Sincerely,
The Great City of NY
This to me is a shocking example of government over-regulation with a gimmick to treat the symptom and not the cause. The government should make all of us safe -should we all get a panic button. The state and city government’s dereliction of duty in public safety isn’t solved by panic buttons, but instead by solving and prosecuting retail and violent crime, and the myriad ways in which law enforcement has turned a blind eye to onramps to more violent crime. Further, government mandating costly programs to retailers to cover their ineptitude in basic societal obligations is not the solution. Retailers should be able to choose how it protects its employees including security systems, guards, crime and license plate tracking like Flock Safety, and other options. This program is a visible blemish on our government’s atrocious record on public safety with NYC crime up 30% from pre-pandemic, a police commissioner under investigation for rampant corruption, a feckless district attorney and the removal of key services for the homeless and mentally in. But sure … let’s implement a panic button. Erg…
The panic button doesn’t work if all you do is push the button. It works because you’re willing to prosecute the shoplifter. Otherwise, it’s “all hat and no cattle.”
A panic button is a good step towards worker safety, but it’s just a temporary fix. Retailers need to rethink their LP strategies and start addressing theft from an operational standpoint. A more comprehensive strategy could better protect both employees and businesses in the long run.
So much to unpack here…
A panic button? Seriously? Mandated by the state?
How about enough police department support in order to enable the police to come when called? How about we, as a society, expect people to take responsibility rather than say “economic hardship forced me to turn to crime”. How about store associates stopped getting dismissed for trying to intervene or call the police when theft happens.
Truly an upside down world we live in right now.
There are lots of unanswered questions here. What will the panic button do? What’s the goal? What’s the process?
- Is it a way to track activity in a local area, notify local stores to make staff more aware, and develop regional strategies?
- Is the primary purpose fast response? If so, how do you differentiate between big incidents, small incidents, and ones that threaten the well-being of staff? Does it make sense for law enforcement to respond if perpetrators have already left the store? How do you indicate the level of threat?
- Higher value products from big brands in other categories (like apparel, electronics and DIY) are potentially more likely to be stolen as part of an organized crime group. Why the focus on commodities?
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Having a panic button that calls the police is useful and it provides retail workers with some peace of mind. However, the real solution to retail crime is to prosecute those responsible for stealing or being violent to staff. Until states and local authorities do this, and do it routinely and consistently, panic buttons will remain little more than a band aid over a gaping wound.
In addition to panic buttons that lead to high priority response from law enforcement, I think retail theft should be made a federal crime governed by RICO (the smash and grabs are organized, and stolen merchandise sold across state lines), that would ensure severe punishment whch would act as a deterrent. economic hardship is no excuse for destructive, unlawful behavior.
It’s the guns. If cops won’t even try to stop children from getting shot up in their classrooms, they won’t try to help at Walmart. Until we get real gun reform, it doesn’t matter if retail theft gets prosecuted more aggressively or not, because no one wants to take the chance to stop the criminals – not the cashier, not the store manager, and not the police.
We had more violent crime, by far, in the 70s and 80s, but the paralysis in fighting crime kicked in once the Assault Weapons Ban was not renewed. It’s the freakin’ guns.
I think this shows the value of competition: no longer does California have a monopoly on the “Dumbest Law of the Year” Award. Lacking any mention of how this functions, or even what its supposed to do, I can only hope it’s not as worthless as I imagine it to be (but there’s a lot of leeway there!)
One problem retailers have is lack of timely response from law enforcement, and sluggish prosecution by the courts. Do we expect a panic button to fix those issues?
Expecting retailers to fix the deeper socio-economic issues that drive retail theft is absurd. This law suggests that politicians have decided to place the issue’s onus on the victim’s back.
It would be fascinating to know who thinks these incidents are being exaggerated. I’ve worked with many hundreds of retailers. I’ve never known a retailer who called the police for sport.
Retailers pay taxes so the police can protect them. Their role should be to call the police to arrest those who attempt to steal from them. Policymakers should ensure there are enough police and jails to protect retailers, retailer’s customers, and the general populace.
Retail theft isn’t going away until communities get serious about enforcing laws.
Funny story: I ran a specialty store on Michigan Avenue in Chicago in the late 70s that was equipped with a panic button at the register. One day a man came in and was acting weird; suspicious creepy weird. I watched him for a while and then hit the panic button to summon the police. Turns out he was a special mystery shopper sent specifically by the corporate office to shop city stores. The powers that be weren’t happy with me until I said the last time I looked, smelling women’s garments while staring at female associates wasn’t on the Mystery Shopper form.
That panic button came in handy several times when we were hit by groups of violent shoplifters. They may not solve the bigger problem, but I am willing to bet that people who work in stores that have panic buttons feel just a little bit safer and that’s a good thing.
Dear Victims of Crime in NY,
We have concluded, in our infinite wisdom, that it is your fault. Please take corrective action to help us combat the crime that you have caused. And please be patient, we are currently experiencing a shortage of police officers because no one seems to want that job anymore!
Sincerely,
The Great City of NY
This to me is a shocking example of government over-regulation with a gimmick to treat the symptom and not the cause. The government should make all of us safe -should we all get a panic button. The state and city government’s dereliction of duty in public safety isn’t solved by panic buttons, but instead by solving and prosecuting retail and violent crime, and the myriad ways in which law enforcement has turned a blind eye to onramps to more violent crime. Further, government mandating costly programs to retailers to cover their ineptitude in basic societal obligations is not the solution. Retailers should be able to choose how it protects its employees including security systems, guards, crime and license plate tracking like Flock Safety, and other options. This program is a visible blemish on our government’s atrocious record on public safety with NYC crime up 30% from pre-pandemic, a police commissioner under investigation for rampant corruption, a feckless district attorney and the removal of key services for the homeless and mentally in. But sure … let’s implement a panic button. Erg…
The panic button doesn’t work if all you do is push the button. It works because you’re willing to prosecute the shoplifter. Otherwise, it’s “all hat and no cattle.”
A panic button is a good step towards worker safety, but it’s just a temporary fix. Retailers need to rethink their LP strategies and start addressing theft from an operational standpoint. A more comprehensive strategy could better protect both employees and businesses in the long run.
So much to unpack here…
A panic button? Seriously? Mandated by the state?
How about enough police department support in order to enable the police to come when called? How about we, as a society, expect people to take responsibility rather than say “economic hardship forced me to turn to crime”. How about store associates stopped getting dismissed for trying to intervene or call the police when theft happens.
Truly an upside down world we live in right now.
There are lots of unanswered questions here. What will the panic button do? What’s the goal? What’s the process?