NRF Pushes Back Against ORC Skeptics
Addressing the elephant in the room on organized retail crime

Quantifying the scope of ORC is a known challenge, as ORC is not a single event or act

David Johnston - VP, Asset Protection & Retail Operations, NRF

Over the last few months, NRF became the focus of various flawed narratives alleging the retail industry distorts retail theft data to drive public policy goals. NRF made a correction to an April 2023 report on organized retail crime (ORC), withdrawing a phrase that suggested ORC accounted for half of the overall inventory losses suffered by the retail industry in 2021.

NRF's research partner K2 Integrity mistakenly linked the results of NRF's 2022 National Retail Security Survey with a statement made by an expert in a 2021 Senate hearing that ORC resulted in $45 billion in annual losses. NRF corrected the citation as soon as the mistake was identified.  

It's fair to ask questions about the data and the true impact of these thefts and organized groups, but the problem with media coverage that focuses on the known data problems gives many critics an unwarranted excuse to downplay the seriousness of these crimes and delay efforts to address them.

Evidence is everywhere that retail crime is on the rise. Media outlets across the nation continue to report ongoing acts of widespread shoplifting. Law enforcement agencies continue to establish task forces and alliances focusing on organized retail crime. These same agencies are reporting apprehensions of repeat theft offenders and fencing operations involved in stealing and reselling stolen goods. Retailers continue to lock up more merchandise to deter and prevent theft, much to the dismay of legitimate customers who now have to wait for a store associate to unlock commonly stolen items.

Better data is absolutely part of the solution, but we should not delay acting on the obvious evidence of retail theft in our communities every day while arguing over the numbers.

It's time for critics to stop dwelling on flawed, flashy inferences and focus on the facts. Instead, let's prioritize addressing the flagrant disregard of law that threatens all retailers and weakens our communities. nrf.com


Prop 47 Facing Progressive Pushback
Growing number of Democrats want to roll back Prop 47

San Francisco Mayor London Breed backs Republican initiative to stiffen penalties for retail theft
Democratic Mayors London Breed of San Francisco and Matt Mahan of San Jose have endorsed a tough-on-crime ballot measure effort to reform Proposition 47, a controversial initiative that reduced some drug and theft felonies to misdemeanors.

The measure, called the Homelessness, Drug Addiction, Retail Theft Reduction Act, will reform a 2014 law by increasing penalties for fentanyl dealers and repeat organized retail theft rings, as well as providing mandatory treatment for drug users, according to the proposed ballot initiative.

These endorsements come in the weeks after Gov. Gavin Newsom told reporters during his January budget presentation that altering Proposition 47 would not curtail the wave of high-profile retail thefts in the state. The Newsom administration instead has proposed six ways lawmakers can expand criminal penalties for organized theft without bringing the issue back to voters. Newsom agreed that tougher enforcement is needed, and has called for more arrests in these cases.

This week, Newsom also assigned 120 California Highway Patrol officers to combat crime in Oakland.

In 2022, San Francisco had the highest rate of property theft among all California cities, according to data from the Public Policy Institute of California, a leading nonpartisan group that researches crime trends and policies. Sacramento, Los Angeles and San Mateo also experienced an increase. However, according to the mayor's office, property crimes in the city were lower than any period in the last 10 years, except for 2020. This year, in the first three weeks of January, property crime is reportedly down 41 percent.

Proposition 47 raised the threshold for shoplifting to be considered a felony to $950 of stolen goods and reclassified some drug charges from felonies to misdemeanors. It was heavily favored back then as a way for California to address the overcrowding in prisons. latimes.com
 
   RELATED: California Democrats support ballot measure to go after retail theft


Two Major Retailers Are Funding the Prop 47 Roll-Back
Walmart, Target Push for New Shoplifting Crackdown in California
Two of the nation's largest retailers and a pair of Democratic mayors are supporting a campaign to roll back California's landmark criminal justice reform, which has been blamed for a spike in retail theft.

Walmart Inc. and Target Corp. are the top funders of a proposed ballot measure that aims to undo Proposition 47, a voter-approved law from 2014 that reduced penalties for many lower-level drug and property crimes in the state.

The latest initiative would give prosecutors more power to charge accused thieves as felons and force drug users into treatment with the threat of jail time, said Greg Totten, head of the California District Attorneys Association, which is spearheading the effort.

The campaign has gained the support of San Francisco Mayor London Breed and San Jose Mayor Matt Mahan, who represent two of the most liberal cities in the US. Their backing reflects a growing frustration felt by the public and city leaders with the consequences of Proposition 47, which some say has emboldened criminals.

Critics point to a recent wave of smash-and-grab robberies at department stores and the prevalence of open-air drug use on city streets as evidence of the law's shortcomings. In September, Target closed three California locations as well as six stores in other states, citing crime.

Other large backers of the campaign include a prison-guard union, Macy's Inc., and businessman and political donor William Oberndorf, who was a major contributor to a 2022 recall effort that ousted San Francisco's progressive district attorney, Chesa Boudin.

The mayors' stance puts them at odds with other Democratic leaders in the state, including Governor Gavin Newsom. bloomberg.com

   RELATED: Walmart and Target Funding Campaign to Stiffen Penalties for Theft


Is NYC Experiencing a 'Migrant Crime Wave'?
Fears of a migrant crime wave are growing in NYC, but actual evidence is scant

The drumbeat of anti-migrant sentiment has been growing in New York for months.

The fears - or conservative talking points - have been bolstered by two recent high-profile episodes. Two police officers were beaten outside a migrant shelter near Times Square, touching off outrage across the city. Days later, a cell phone robbery ring orchestrated by a handful of recent migrants was busted.

The episodes sparked GOP calls for the deportation of migrants who've committed crimes and for the revocation of New York City's sanctuary city status. But is a "migrant crime wave" really taking hold of New York City?

Nothing in the data, at this point, suggests any broad-based or wide-scale increases in crime is being driven by the arrival of tens of thousands of migrants in New York City.

Mayor Adams, who has said he would entertain the possibility of working more closely with ICE if the City Council dialed back some of New York's sanctuary protections, noted during a press conference on the arrests in the cell phone robbery ring that "the overwhelming number of 170‑plus thousand migrants and asylum seekers are attempting to continue their next leg of their journey of pursuing the American dream," and that a "small number of people are breaking the law."

NYPD Commissioner Edward Caban suggested a broader problem when, at the same event, he said, "a wave of migrant crime has washed over our city."    nydailynews.com

   RELATED: Body-cam video contradicts NYPD version of migrants beating cops


California Communities Debate Over How to Solve Retail Crime Problem
West Hollywood, CA: Community Debunks 'Retail Crime Wave' Panic, Rejects 'Tough on Crime' Responses

Retail workers and advocates refuse to return to failed public safety approaches, demanding robust community investment

The Select Committee on Retail Theft and the Assembly Committee on Public Safety convened a hearing at West Hollywood City Hall to explore statewide solutions to the reported "retail crime" surge.

At the hearing, retail workers, professors, social workers, local city council members, and advocates provided public comment disputing the narrative that California should further penalize low-level offenses in response to the misinformation-driven retail theft panic. They will call on local and state governments to center proven, non-carceral solutions to preventing harm.

"Instead of increasing funds for police or adding harsh punishments for retail crime, legislators should look to solutions like raising wages, offering full-time roles (that come with benefits), offering professional development, and shortening store hours," said Rachel Reyes, former West Los Angeles retail worker and manager.

Community leaders stress the importance of focusing on real solutions that actually address poverty and homelessness, as well as efforts that prioritize small businesses and their customers who have experienced retail theft or violence. "We need solutions that address why people shoplift," says Claire Simonich, Associate Director of Vera California. "It's vital we support local businesses and improve in-person shopping experiences by investing in workers."  davisvanguard.org


Los Angeles DA Under Fire for Having a 'Heart for Criminals'
Grieving mom of shooting victim confronts DA George Gascón over lax crime policies

Emma Rivas accused Gascón of having 'more sympathy' for her son's killer than for her son

A Los Angeles shooting victim's grieving mother confronted progressive District Attorney George Gascón with tough questions last week, slamming his allegedly soft-on-crime policies to his face.

"My child was killed by a gang member, and you had more sympathy for that gang member than my child who was killed in front of my home," Emma Rivas said during a district attorney debate over policies on gang-related crime enhancements last Thursday.

Gascón barred prosecutors from pursuing advanced punishments for gang members after taking over as district attorney, according to FOX 11 in LA.

"We cannot have that kind of progressive DA in office," she said. "This is the first time in history, 180 years, that we've ever had a DA that has a heart for criminals and not a heart for the victims. There are parents that lost their children to murder that are 16, 17 years old and getting five years in jail. Where's the justice in this? foxnews.com

 
Walmart and Target try a new way to take on retail theft

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Overworked & Understaffed: A Deadly Combination
CVS pharmacist's death becomes cautionary tale of crushing stress at work
A CVS pharmacist at an understaffed store had a fatal heart attack at work - and her family thinks that she didn't go to the ER because she didn't want to leave the pharmacy unattended.

Anderson knew that she was experiencing symptoms of a heart attack while at work, according to the USA Today article, which shared text messages sent between Anderson and Joe Bowman, her boyfriend, during what was to be her final shift.

About 15 minutes later, she collapsed in the pharmacy. People close to Anderson told USA Today they thought she had decided to wait until her replacement arrived before going to the ER.

Over the past decade, corporations like CVS, Rite Aid, Walgreens and Walmart have steadily slashed pharmacy staffing levels while saddling remaining employees with a burgeoning list of additional duties.

Stores that once had two pharmacists and six pharmacy technicians filling an average of 500 prescriptions a day now may have half the staff and an even higher prescription volume - plus an endless crush of vaccine appointments, rapid COVID tests and patient consultation calls.

Every task is timed and measured against corporate goals that reward speed and profits. Staff who do not fill prescriptions fast enough, answer the phones quickly enough or drum up enough vaccination business can face discipline, reassignment or termination.

No chain exemplifies this ethos more than CVS, dozens of current and former pharmacists told USA TODAY. Many recalled how they have been pressured to work through sickness, physical injuries and mental breakdowns. businessinsider.com usatoday.com


AI Stores Coming to a City Near You?
Will AI Stores Without Employees Ever Become Mainstream?
Retail is evolving. With technology and changing customer behaviors guiding the way, more businesses are shifting toward automated systems and AI stores. In fact, according to Retail Innovation Hub's 2022 research, there was an 11% increase in brands using self-checkout technology globally compared to a year prior.

Amazon Fresh has already paved the way with its cashier-less stores but has also been looking for ways to overcome the many challenges it faces. In the U.K., top supermarket chain Tesco introduced a checkout-free store called GetGo. But it doesn't stop there.

The trend is gaining even more momentum in Asia, with Tokyo-based FamilyMart planning 1,000 unmanned stores by 2024 and Singapore's Pick&Go chain launching three AI-powered unmanned grocery stores so far.

Looking toward Hong Kong, HKTV's subsidiary brand, Shoalter Automation, is readying for the debut of its first entirely automated retail store in Manchester, U.K., in 2023. This big plan includes an offline shop equipped with automated storage and retailing systems capable of taking orders and restocking merchandise without any human help.

Automated stores are hugely beneficial for businesses. They offer around-the-clock operations and predict stock needs, analyze shopping trends, and optimize inventory management. Another bonus is the simplified data collection process. Once a brand sets up its systems and hardware, data collection is a breeze, and the businesses can then expand easily into new markets.

A study by Axis Communications reveals that nearly half of Hong Kong consumers are more likely to visit unmanned stores, particularly in the post-pandemic era. The convenience, enhanced customer experience, and ability to shop at any time make these stores significantly appealing. retailwire.com

 
Retailers Are 'All In' on AI
Retailers go beyond the buzz to explore AI's potential

At NRF 2024: Retail's Big Show, artificial intelligence's significance to the future of retail was clear

If NRF 2024: Retail's Big Show was any indication, the retail industry believes AI stands for "all in."

With more than a dozen AI-specific exhibitors in the Innovation Lab and many more throughout the Expo, dedicated AI sessions, and statements from executives in sessions, artificial intelligence was a constant topic throughout the show. Many noted that the technology had gone beyond hype to include practical use cases and game-changing opportunities in areas such as personalization, shopper behavior, sales and service, training and talent development, operations and more.

Hal Lawton, Tractor Supply Company president and CEO, compared the buzz to the start of ecommerce; it's full of wonder, opportunity - and questions. This time around, however, there appears to be "much more certainty."

Ulta Beauty is using generative AI-powered tools to create personalized digital experiences and deeper level of customer service for shoppers.  Anshu Bhardwaj, senior vice president and chief operating officer, Walmart Global Technology and Walmart Commerce Technologies, likes to think of the technology as making her people-led, tech-powered company's workers "superhuman."  nrf.com


Are Retail Attempts to Cut Down on Returns Failing?
Retail returns increase despite higher fees, other deterrents
Retailers made changes to return policies to help control increasing costs and recoup a portion of the expenses via customer fees. The reverse journey of a returned order incurs many costs related to shipping and transportation, processing, restocking and customer service.

In the recent holiday season, U.S. online sales totaled $221.1 billion, according to Adobe Analytics. And between 20% and 30% of items will be returned to the retailer, according to Shopify.

Blue Yonder recently surveyed retailers about e-commerce returns and found that 89% had instituted higher restocking and shipping fees and shortened return windows in the past year, but that did not deter consumers. Blue Yonder reports that despite tighter restrictions, 59% of retailers experienced an increase in the rate of returns over that same period, which cut into margins. The survey reports that 63% of retailers need help managing returns as customers increasingly shop online.

Despite retailers' focus on controlling returns costs, the survey found that many retailers still rely on unsophisticated returns processes, resulting in poor customer experience and inefficiencies. talkbusiness.net


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Will Retail Theft Become a Major Presidential Campaign Issue?
Democrats want to stop retail theft crisis to boost crime claims ahead of election
Democrats are banking on solutions for shoplifting, a type of crime plaguing cities and growing in popularity, as a way to take away the Republicans' winning platform on public safety and criminal justice this election season.

Retail theft is gradually becoming a serious problem in many Democratic-run areas, particularly in California, New York, and Washington, D.C., to name a few. Democratic leaders, who have struggled to run a platform on curbing crime while working toward comprehensive criminal justice reform, believe a solution to retail theft could be the key to rallying voters in the 2024 election.  gazette.com

'Secure Our World' Campaign Highlighted During the Super Bowl
CISA blitzes Super Bowl with cyber campaign as businesses fumble security

CISA brought its Secure Our World initiative to Las Vegas, for the biggest annual event in sports. Will anyone heed the advice?

The Cybersecurity and Infrastructure Security Agency's awareness campaign, Secure Our World, got a big boost from the NFL this week as it prepares to put on the Super Bowl, the biggest annual event in American sports.

The public service announcement campaign, which CISA launched in September, encourages people and small- to medium-sized businesses to use strong passwords, enable multifactor authentication, identify and report phishing, and update software regularly. CISA created videos to display online, at the NFL Experience in Las Vegas and in the stadium during the game.

The NFL also pledged to get its 32 teams involved after the big game, to help advance cybersecurity awareness and share tips with fans throughout the 2024-2025 season.

By partnering with the NFL, CISA is adding star power to an ongoing campaign to spur people and businesses to raise their cyber defenses and improve behaviors online.

The mass market campaign on one of the world's biggest stages follows stark warnings from federal cyber authorities about China state-sponsored intrusions and ongoing malicious activity targeting multiple critical infrastructure providers in the U.S.

Federal cyber authorities' heightened attention on Las Vegas isn't temporary or limited to the big game. A pair of the city's showcase hotel and casino companies were hit by major cyberattacks last summer that caused significant financial losses and operational impacts. cybersecuritydive.com


DoorDash & Walmart Delivery Flooded with Bots
Bots are some DoorDash and Walmart Spark delivery gig workers' dirty secret

"Bots," or apps that make it easier to claim orders, are proliferating on delivery gig apps.

Frustrated by falling pay and intensifying competition on delivery apps, some gig workers are turning to "bots" - apps and other programs that claim to help them optimize their earnings. While using bots violates the delivery apps' policies, some drivers say they're worth it, or even necessary, to make enough money as a gig worker.

Some bots are relatively simple. "Batch grabbers," for instance, claim orders on a delivery app faster than any human can tap them on a phone screen. Often, they also allow users to accept orders with certain characteristics, such as high pay or short driving time.

Others, like the one that the Indiana DoorDash driver used, promise users otherwise unseen information about the orders, such as how much a customer tipped. This app, called Para, was built by a former Uber employee and launched for download in 2021, according to the New York Times.

Para's website says that it can reveal "hidden trip details" and help users capture higher-paying orders on apps like Uber, Grubhub, and Lyft. businessinsider.com


Holding the Private Sector Accountable for Poor Security
National cyber director urges private sector collaboration to counter nation-state cyber threat

Harry Coker said the Biden administration is exploring plans to hold manufacturers accountable for poor security, while also working to harmonize regulations.

National Cyber Director Harry Coker this week reiterated prior warnings that hackers linked to the People's Republic of China are actively working to gain access to critical infrastructure in the U.S. to potentially launch malicious attacks.

Coker, in his first major speech in Washington since he was confirmed in December, said the state-linked threat actors aimed to disrupt - or possibly destroy - the ability to provide critical services as a distraction linked to military activity.

Earlier this week, the FBI and the Cybersecurity and Infrastructure Security Agency, said the state-linked actor Volt Typhoon and other China-affiliated actors have penetrated key critical infrastructure sectors in preparation for disruptive attacks.  cybersecuritydive.com


What's ahead for cybersecurity in 2024

A steady stream of threats and new regulations have executives tiptoeing around how to best detail security incidents.

2023 ushered in a new era of regulatory scrutiny for the cybersecurity industry, and executives, analysts and government officials are preparing for uncertainty as it all plays out in 2024.

The Securities and Exchange Commission enacted rules that public companies have to disclose material security incidents. But what's "material" is, for now, subject to interpretation and executives have to tiptoe around how to best detail security incidents.

Those disclosure mandates are coming to fore as ransomware attacks take on a new intensity and threat actors put critical infrastructure in their crosshairs. cybersecuritydive.com


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