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January 1, Retail Crime Skyrockets, Retailers Report a Staggering $112 Billion Loss
Retail Crime Escalates
Retail stores across the nation are reeling as theft-related losses reached an all-time high, with losses escalating to more than $112 billion. This alarming figure emerges from the 2023 National Retail Security Survey, indicating an increase from $93.9 billion in 2021 to $112.1 billion in 2022.
David Johnston, NRF Vice President for Asset Protection and Retail Operations, voiced his concerns, stating, “Retailers are seeing unprecedented levels of theft coupled with rampant crime in their stores, and the situation is only becoming more dire.”
He further highlighted that beyond the severe financial implications, “the violence and concerns over safety continue to be the priority for all retailers, regardless of size or category.”
The survey revealed that the shrink rate, a measure indicating inventory loss due to various factors like shoplifting and employee error, surged to 1.6 percent in 2022, from 1.4 percent the previous year. Disturbingly, nearly two-thirds of this shrink was directly attributed to theft.
Organized Retail Crime: A Growing Threat
The most unsettling revelation for retailers is the proliferation of organized retail crime. A striking 67 percent of retailers reported witnessing a higher level of such organized criminal activities compared to past years. Major cities like Los Angeles, San Francisco, Houston, New York, and Seattle were identified as the epicenters for organized retail theft.
To counteract these thefts, retailers are adopting desperate measures. A significant 28 percent acknowledged having to shut down stores in particular locations. Another 45 percent curtailed their operating hours, while 30 percent have opted to modify their in-store product offerings.
Read Hayes, the Loss Prevention Research Council Director, commented on these developments.
“Retailers are piloting and implementing a number of loss prevention practices to deter, prevent, and mitigate these substantial losses.”
Hayes noted that, apart from enhancing traditional security strategies, retailers are also investing in pioneering emerging technologies for future theft prevention.
Retail Titans Address Their Plight
Major retail companies haven’t shied away from addressing the rampant theft affecting their bottom line. Target CEO Brian Cornell made his stance clear, stating, “Our team continues to face an unacceptable amount of retail theft and organized retail crime.”
“Shrink remains consistent with our expectations but well above the sustainable level where we expect to operate over time, and unfortunately, safety incidents associated with theft are moving in the wrong direction.”
Echoing these sentiments, Dick’s Sporting Goods executives highlighted theft’s tangible impact on their earnings.
“The impact of theft on our shrink was meaningful to both our Q2 results and our go-forward expectations for the balance of the year,” CEO Lauren Hobart remarked.
The revelation from Dick’s precipitated a 25 percent plunge in their stock value.
Navdeep Gupta, Dick’s CFO, explained the dire situation, saying, “We thought we had adequately reserved for it. However, the number of incidents and the organized retail crime impact came in significantly higher than we anticipated.”
The products on thieves’ radar span from high-end fashion to everyday items that can be quickly resold. The 2023 National Retail Security Survey pinpointed products like outerwear, batteries, energy drinks, designer footwear, and even kitchen accessories as some of the most commonly stolen items.
As our loyal readers, we encourage you to share your thoughts and opinions on this issue. Let your voice be heard and join the discussion below.
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jeff Taylor
October 6, 2023 at 9:10 pm
Start prosecuting,, you have camera’s for evidence and use your loss prevention teams to detain shoplifters. When its no longer worth the effort to steal then it will stop.
Steamboat
October 8, 2023 at 6:54 pm
This would be a great way of preventing thefts, if it was in 1990 and part of 2000, but in today’s warped way of thinking, the looney liberals have declared it is ok to steal with no consequences. Calicommie has even made it legal for anyone to steal up to $950 with no arrest and if a law enforcement officer does dare to waste their time attempting an arrest, there is no bail required, so the thief is turned loose. Then to top that off, if the retailer attempts to stop the thug robbing their store, the new proposed law there is that the retailer gets FINED up to $18000. In what world does this work? No retailer with any business sense should continue to have stores in Calif and other uber liberal states. A small business owner could not absorb that much thievery and still stay solvent. Sad.
Ginger
October 6, 2023 at 9:28 pm
So, the truth is now finally coming out about the real cost of all of the thefts that we have seen in recent years. Those on the left kept saying “nothing to see here…the insurance companies will pay for it” or “this is no big deal…companies make enough money”. So, with losses being these great, who will actually be paying the price? The customers will see an increase in cost. So, for all of those who said, no big deal, I guess you can now suffer the consequences. No big deal, right?
grrumpa
October 6, 2023 at 10:40 pm
Money for drugs. What we need is strict laws and strict punishment for drug dealers with no chance of “deals” and no chance of parole. It needs to be too costly for drug dealers to operate. Without the dealers (who are murdering people) then the cartels have no one to sell to and the users have no one to buy from. It must be this way or else we just give up. The governments are enablers with free needles and Narcan in the name of compassion, but are just as guilty as the dealers. With people off drugs, the thefts will stop.
Doris Lauter
October 7, 2023 at 12:22 am
You should be able ot shoot them in the legs so they can’at get away. With hundreds of them like maggots invading your store, you have to do somethin that they will be scared of. It’s not fair to just let them clean your store out. You need something to discourage others. Maybe a guard with guns visible?
kurt gandenberger
October 7, 2023 at 9:08 am
the eventual punishment for retail theft is the stores closing. there are food and retail “deserts” in most urban areas. these specifically result as businesses activity is destroyed by evil. AOC says people are stealing cosmetics and big screen tv’s because they are hungry. none of the smash and grab people i see on-line look like they have ever missed a meal.
Nathan C. Paris
November 6, 2023 at 8:00 am
If these crimes go unpunishable by lack of prosecution, DA’s not doing their jobs, it will continue and get worse. The tax payers will end up paying the tabs in higher costs for goods provided. Bad policies ALWAYS lands on the pocket books/wallets of the consumers! All the more reason to know who and what you are electing to office in your homeland!
RICHARD
November 6, 2023 at 10:45 am
IN OUR NEIGHBOR HOOD, WE SEE HIGH SCHOOL KIDS WALK IN TO ”’VONS” EVERY DAY, FILL THEIR POCKETS, ORDER FOOD IN THE DELI AND THEN WALK JUST OUT.MY GOD WHAT KIND OF PARENT’S RAISED THESE KIDS???? WHAT KIND OF SOCIETY ARE WE?? WE NOW ACT LIKE ANIMALS, NO ANIMAL BEHAVIOR IS 100% BETTER, WE ARE BEYOND HELP. IF OUR GOVERNMENT DOES NOT CARE, AFTER ALL THEY ABOLISHED OUR POLICE, BUT I NEVER HEARD OF ANY WESTERN COUNTRY TO DO THIS, OR OPEN THEIR BORDERS TO OVER 9 MILLION MORE CRIMINAL ILLEGALS, NOT MIGRANTS BUT LAW BREAKERS.THAT OUR STUPID GOVERNMENT IS SUPPORTING WITH OUR TAX DOLLARS 100%. INSTEAD OF CLEANING UP OUR VERY DIRTY COUNTRY, CLEAN UP THE HOMELESS SITUATION, THE MENTALLY CHALLENGED DRUG ADDICTS. PLEASE BRING BACK PRESIDENT TRUMP ASAP, PUT THESE DEMOCRATIC JUDGES BEHIND BARS, THEY ARE UNFIT TO CHARGE OUR PRESIDENT WITH ALL THESE FALSE CHARGES.