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October 4, 2024
Will the Retail Theft Era Ever Come to an End?
Late last year, data from the Council on Criminal Justice revealed that shoplifting and retail theft had increased in some cities while declining in others.
In the last few years, cities across the nation have been sharing reports of retail crime in all sorts of shapes and sizes, ranging from flash mobs in broad daylight to organized retail crime rings.
The analysis of incidents in 24 cities over five years showed that New York and Los Angeles experienced the largest rise in reported shoplifting from mid-2019 to mid-2023, whereas St. Petersburg and St. Paul noted significant decreases. During the pandemic’s height, shoplifting incidents dropped by 37%, but the proportion categorized as felonies rose dramatically.
A more recent update from June 2024 from the Council on Criminal Justice shared that the rate of shoplifting during the first half of the year was an average of 24% higher than the first half of 2023 and 10% higher than the first half of 2019.
Major retailers have attributed store closures to rising theft, with companies like Safeway and Walmart citing shoplifting as a reason for operational changes. Despite their efforts, challenges have remained in accurately tracking shoplifting incidents due to self-reporting issues.
Retail theft has even affected self-checkout kiosks and called for regulating self-checkout systems, particularly in California with proposed bill SB 1446 to limit self-checkout stations and certain items to curb theft and protect jobs. In response, companies like Walmart and Target have reassessed their self-checkout strategies, either by limiting use or enhancing security to improve customer service and address theft concerns.
Last month, New York enacted a law mandating that retail stores install panic buttons to enhance worker safety amid rising retail theft, which had seen a 19.4% increase in losses from 2021 to 2022, totaling over $112 billion. The legislation, part of the Retail Worker Safety Act, applies to stores with 10 or more employees and requires functional panic buttons by Jan. 1, 2027.
As reported by Quartz, Target plans to continue securing essential items such as body wash, deodorant, and undergarments behind protective barriers for the foreseeable future. Customers will be required to wave their hands in front of devices near the glass enclosures to access these products. CEO Brian Cornell did not indicate whether there are any intentions to remove the glass barriers in the near future.
Furthermore, Cornell acknowledged improvements to retail theft challenges, mentioning how he feels better today about retail theft than he did last year. This is particularly due to increased government support in California and assistance from the Department of Homeland Security,
Target also recently changed its return policy. On its official website, Target now specifies how it “reserves the right to deny returns, refunds and exchanges including but not limited to prevent fraud, suspected fraud or abuse.”
Recent reports indicate that retail theft continues to persist in various regions. For example:
- Roseville, California: According to the Sacramento Bee, two suspects were arrested by Roseville police on Wednesday for allegedly stealing around two dozen Stanley cups from a retail store.
- Central Pennsylvania: Per PAhomepage.com, police arrested five people for stealing from a Walmart in Luzerne County in separate theft incidents over the last two months. This includes a 41-year-old woman in Berwick who was caught under-scanning groceries and household items for less than their marked prices.
- Ventura County, California: The Ventura County Organized Retail Theft Task Force, in coordination with loss prevention teams from Home Depot, T.J. Maxx, and Target, apprehended 16 suspects involved in retail theft last month, as reported by KTLA 5. They recovered almost $2,000 worth of stolen items, along with “burglary tools and methamphetamine, authorities said.”
- Albany County, New York: Two women were arraigned after being linked to thefts totaling over $50,000 from retailers such as Kohl’s, Dick’s Sporting Goods, and Ulta, according to WRGB.
- Washington, D.C.: A security guard shared with 7News that rising prices on basic goods have led to an increase in thefts, contributing to her decision to start “stepping back” from her duties. Additionally, a 64-year-old man was recently arrested in connection to 23 retail thefts totaling almost $7,000.
The Hill poses a question from a thief’s standpoint: “Why break into a house, likely in a low-income area, where there is little of value to steal when the thief can walk into a drugstore or department store in San Francisco, Chicago or New York City and take thousands of dollars’ worth of merchandise and no one will stop him?”
Discussion Questions
How do trends in retail theft across different cities reflect broader socio-economic conditions, and what implications might this have for retailers’ strategies?
Given recent measures to enhance worker safety, what innovative solutions could retailers adopt to balance loss prevention with customer experience?
As retailers rely more on technology like self-checkout systems and panic buttons, how might these advancements influence the future of retail security and consumer interaction?
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Theft has been around since the beginning of time: stallholders in ancient Rome had problems with urchins stealing things from them. So no, theft will never come to a complete end. What we have to do, however, is bring it more under control. Technology can help with that: more monitoring and the use of AI to warn of potential shoplifting activity, is one example. However, we also need to punish and deter. It’s no good catching shoplifters if we don’t punish them accordingly. From what Target says, it sounds like some of this is happening. Although I am still suspicious about Target’s shrink numbers from last year as I think some of it came down to poor inventory control as well as theft!
As well as missed markdowns. Beware the retail inventory method. Shrink seems to be pretty intractable. Saying any more than that immediately politicizes the conversation…so I’ll leave it at that…it’s an intractable number.
Is this article actually suggesting that we measure retail theft anecdotally…(apparently) on a case-by-case basis? It’s hardly an idle question, since lack of reliable data – and the inevitable politicization of what we do have – not only makes it hard to speak meaningfully on the issue, it likely impedes progress in reducing it, as well.
Retail theft is a law enforcement issue.
There are too many lame excuses for crimes in our country today, and too few crimes are punished appropriately, and especially retail crimes. So, will the rash of thefts ever recede? Not until our country goes back to treating each incident as a crime without justification.
When I met with retail-chain CEO’s at NACDS Annual Meeting, most, if not all, were very worried about mob-theft crimes, which is why they are boarding up their stores and leaving urban city locations, especially where police have been defunded or law enforcement cannot do their jobs.
The rise in prices does not justify theft, shoplifting, or mob theft. Mob-theft involves most goods being stolen and sold on Ebay later. Therefore, these crimes aren’t committed out of necessity, as some politicians have suggested.
Stores that keep everyday items under lock and key are unattractive to shoppers. Since many types of items are no longer in boxes, shoplifting thefts have become easier.
Another inexcusable crime that rarely goes punished is looting, as it is generally considered a normal part of civil unrest. There were many small businesses that did not recover in places like Minneapolis and Ferguson. There was an instruction to refrain from arresting looters when “Ferguson” took place.
Our country does not treat stealing seriously enough to motivate thieves to stop stealing. This is a law enforcement issue, nothing more.
I think you are mischaracterizing what happened in Minneapolis. Yes, numerous businesses were broken into (I know owners who were affected, made whole by insurance, and built back better, as well as family friends who lived in those blocks) but the count of those catastrophically closed were minimal, and the Lake Street area is frankly thriving today and the best it’s looked in 40 years. Many of those who caused the damage were ultimately identified and prosecuted, and lo and behold, a great number were white folks from well outside the communities that were affected – outer ring suburbs and even whole states away. So I do agree that organized looting is an issue and needs to be hunted down as the cancer that it is, but with the emphasis on the word “organized.” Who is really pulling the strings and manipulating the dupes to do the damage?
Locking up merchandise pushes shoppers online and they may wind up choosing a rival’s e-commerce site instead. Innovations like RFID tags on items can help retailers strengthen loss prevention without compromising the customer experience.
The future of retail security is shifting as store teams increasingly view shoppers with fear instead of trust. Store associates’ roles have evolved beyond serving to include policing, which can make customers feel scrutinized rather than welcome.
Retail theft has (at least) two forms: shoplifting, which affects the retail store, and porch pirates, which affect eCommerce. Part of the issue is the minimal consequences when caught. There’s very little incentive to stop when the punishment doesn’t hurt. But enforcement costs money. Are in-store deterrents, such as locked merchandise, the answer? This creates inconvenience that can drive honest customers to an easier online experience. In the end, honest customers are paying for the problem. The shrink is built into the price, just as any other overhead expense.
Deterrence of retail theft must include consequences for the bad actors. That means arresting thieves in the act and taking their photos for use by law enforcement, both actions most retailers have been loath to allow due to concerns about liability and privacy.
Punishment needn’t be harsh, but it must be certain. When store thefts are part of a for-profit enterprise that re-sells goods on the black market, the perpetrators deserve to be treated as felons and put in prison. Same for looters and flash mobs. However, when a teen is collared swiping a candy bar for thrills, the act should be redeemable – at least for a first offense.
Technology can help, I think, if its presence is known to all. The few dishonest store visitors will know they can be seen and detained, while the many honest ones should be reassured that the security systems are for their protection too.
I’m not sure what exactly we’re chasing here. Is retail theft a problem? Yes. I’ve been in the business for almost 50 years; there has always been theft in retail. We need to address it, but we also have to avoid fueling the hype cycle here. This has become the new “Retail Apocalypse” story, a bit of fact and a lot of hype. The opening line, “Up in some areas, down in others,” leaves one with no idea of what’s actually happening.
Enforcement is one area to
Bad actors have more tools at their disposal to steal from retailers. Between gift card fraud and online, seemingly open marketplaces for them to fence stolen goods makes it much easier for these guys to profit from their activities. Enforcement of existing laws is important. This changes the risk/reward calculation for criminals.
But before we just call out enforcement, we also need to consider the big picture. When we’re talking about enforcement, included in that discussion has to be holding online platforms more accountable for what’s being bought and sold in the markets, which is really important. One thing that has been demonstrated to contribute to theft but almost never gets mentioned by retailers is self-checkout. They love the expense savings but seem to be blinded to the impact that it has on inventory shortage. There’s also no mention of employee theft, also a significant contributor to the issue. But apparently not as exciting to report on.
The other issue, of course, is ORC and understanding how these groups operate. From an enforcement standpoint, we need to provide better tools and data to connect events and bad actors and, at the same time, evaluate the thresholds required to escalate organized activities to regional and federal law enforcement groups.
This issue is far more complicated than just busting more shoplifters or hardening stores.
This justifies a much larger post than what I can write here. So I will attempt to give you some bullets:
-A general decline in right/wrong thinking-people are losing their ability or desire to “police” themselves.
-Lower crime rates statistically are usually caused by a trend to NOT report crime
-District Attorneys deciding not to prosecute sends a “just do it” message (with apologies to Nike)
-$950 floor on prosecutions does not help either
-Retail stores firing intervening associates sends another “just do it” message.
And on and on it goes. I wish I had a solution. I do not.
Thieves are probably pretty good at calculating their odds of achieving good outcomes. They’ll look for vulnerabilities, opportunities and risk of consequences. And act accordingly. It’s not hard to predict what’s going to happen when there are vulnerabilities and lack of, or zero, consequences. It’s also not hard to predict what will happen with low vulnerabilities and high consequences. Retailers and law enforcement can make the choices that will make thieves rethink their choices.
Retailers have few good options to deter theft short of having police in their stores. And no retailer wants their employees in harms way, nor the safety of their honest customers. Are we soon at a peak where operational store tech, cameras, door sirens and exit barriers don’t slow theft and are just a nuisance for everyone, including being costly? How long should retailers stay open before they close up shop?
As long as elected government leaders, prosecutors, and judges continue to soften the punishment of theft (don’t worry, in California it’s mostly OK to steal anything under $1,000 without worry), then retailers will have to make hard choices.
I’m reading a fascinating book by Johann Hari called Chasing the Scream. It documents how increases in theft and crime are directly tied to the drug war. But, surprisingly, it turns out the harder the US fights the drug war the more those actions increase theft. Certainly retailers have to make hard choices for today. But let’s not forget they are fighting a societal battle — retail theft increases with broader social forces not mere “greedy-ness.” Retailers today appear to be bearing the cost of misguided policies reaching back through 40 years (and more) in US history.
I am aware of several, high theft, items that are not being reordered by certain stores. Not discontinued, just not re-ordered. A bit of limbo. These items are thriving online where they can sell for lower price per unit due to several factors including larger count packs, lower cost online packaging and reduction in theft overhead. Porch thieves are still a risk with online sales but high theft items thriving online is an organic solution to high retail theft items.
While locking up merchandise reduces theft, it also reduces in-store sales by driving customers toward other shopping avenues. These security measures add friction to the shopping experience for both customers and associates, ultimately increasing labor costs per transaction and cutting into profits. This approach feels reactive, addressing the immediate issue but missing out on a long-term solution. Retail theft is a complex issue influenced by various factors, but it’s time for retailers to move beyond policing and adjust their strategies to secure merchandise without compromising the shopping experience.
The rise in retail theft reflects the socio-economic issues like income inequality and inflation. People are desperate, and that’s pushing more individuals toward theft, especially in cities where the cost of living is high.
Simply locking products behind glass will not suffice for retailers, they should invest in technology that creates a balance between security and customer experience, like smart surveillance systems and better inventory tracking like RFID.
As for self-checkout, it’s a double-edged sword – convenient for customers, but easier for theft. The need is to improve security measures while ensuring it doesn’t alienate honest shoppers. Ultimately, it all comes down to combining technology with customer-centric solutions.
As long as online marketplaces allow stolen merchandise to be sold, theft will increase. Recently in Chicago, a Best Buy was cleaned out – according to a local TV Station, the stolen good were on-line within minutes of the theft. On top of that, Chicago Police do not respond to thefts under $900.