D&D Daily Partner	Booth Number
	20019
	21130
	14051
	13114
	7108
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New York City's Theft Crisis Crushes Retailers
Retail Theft Rises, and N.Y.C. Small Business Owners Are Paying the Price

In New York City, neighborhood stores are struggling to confront the crimes that have cascaded from the disruptions of the pandemic.

Deborah Koenigsberger's shops are among businesses in New York City grappling with a rise in crimes that has cascaded from the disruptions of the last two years. The pandemic exacerbated job losses, mental illness and drug abuse, which law enforcement officials and business owners say has contributed to increasingly brazen behavior from people walking into neighborhood stores, from shoplifting to assaults.

The debate over the underlying causes has also focused on New York's bail laws, on a police force distracted by a spike in shootings and on online marketplaces where organized retail crews can easily sell stolen goods.

Last year, complaints of retail theft were about 16 percent higher than in 2019, according to the New York Police Department. But arrest rates have dropped, with about 28 percent of the complaints resulting in arrests last year, compared with 48.5 percent in 2019.

Safety worries could influence the willingness of commuters to go to work, whether that workplace is an investment bank or a bodega. Some small businesses are closing earlier at night because workers are afraid to stay late.

The city's new mayor, Eric Adams, is lobbying to toughen the state's bail laws, which were amended in 2019, allowing more people who had been arrested to remain free while their cases were pending. Law enforcement officials blame the changes for making it harder to keep certain defendants, like serial shoplifters, detained after an arrest.

"We can't have a city where our drugstores and bodegas and restaurants are leaving because people are walking into the stores, taking whatever they want on the shelves and walking out," Mr. Adams told the State Legislature recently.

The Police Department said one reason the arrest rate had dropped for retail thefts was because there was more stealing at stores without security guards who were willing to detain shoplifters. During the pandemic, organized crews nationwide also increasingly targeted retailers, stealing large quantities of merchandise to resell online. nytimes.com

Social Media: The Real ORC Accomplice
Is Social Media an Accomplice to New Organized Retail Crime?
Recent "spontaneous" smash-and-grab incidents, like the one at Nordstrom in San Francisco, have been anything but spontaneous. The impact of these events are more than simple theft and loss for retailers; they deter customers, disenfranchise employees, and add insurance costs.

The way those committing theft, robbery and crime have adopted technology has become a new form of organized crime. These individuals can roust or "crowdsource" a flash mob using online and social media platforms to incite unrest, perform "smash and grab" pop-up crime events, or even instigate a protest march to cover a criminal activity. Their targets don't appear to interfere with real organized crime, and the people committing these disturbing acts are using sites like eBay and Craigslist as their "fences" to cash out, right out in the open.

The Challenge

There are a considerable number of access control and surveillance solutions available in the marketplace. Unfortunately, adding more surveillance technology has its limits. If a camera sees a crime taking place, it's too late to prevent the crime from happening. Cameras are useful to monitor remote areas and facilities off hours. However, if the place of business is open and someone appears with a weapon or a crowd appears to commit a crime, it's too late for the security person monitoring the cameras to trigger a reaction fast enough to alert people on site to prevent anything from happening. If they were able to anticipate the event, they could be better prepared to prevent a situation. The challenge is how to both prevent an event and discourage it from happening at all. New technologies are needed to help security professionals discover the planning and identify the organizers.

Finding Solutions

It seems the crime sponsors are two steps ahead of their victims and using different technologies that keep them under the radar with the ability to execute effectively. What if retailers start using the same technology as the villains? How about monitoring the place where the posts are made - and not just one channel, but all of them? What about correlating posts from multiple and disparate sources to discover a potential threat or the intention to commit a crime? There's technology that connects the dots, correlates and alerts the security professional to a potential event. Platforms exist that discover the posts that point to the intention to commit. mytotalretail.com

Big City ORC Audit - Just a Political Blame Game?
Op-Ed: With Seattle's retail theft on the rise, city erects barrier from blame with shoplifting audit
The Seattle Police Department claims that retail theft case referrals have declined over the last two years, referencing a retail policy direction of a "hands-off approach" due to employee safety and liability concerns. Simultaneously, the Seattle City Council reports that the overall volume of retail theft has increased, citing the more prevalent use of online marketplaces for selling stolen goods.

Are we going to be changing our policies? Are we going to be arresting people when they try to steal a flat-screen TV? Are we going to be arresting somebody when they steal $500 worth of goods? No. We're going to get an auditor.

The council's solution is to commission the city auditor to examine "the current state of organized retail crime in Seattle ... and potential opportunities for the City to better address organized retail crime." Councilmembers Andrew Lewis and Lisa Herbold announced Tuesday that the audit of organized retail crime is in its preliminary stage.

This audit will examine the state of organized retail crime in the city, look at strategies other jurisdictions are using to address the issues, and develop ways the city might potentially better address these types of crime. I have the craziest idea: What if you just let the police do their job?

The council is trying to put a barrier from blame between them and crime, shifting responsibility from the policies they encourage. Instead, the auditor produces the answers: income inequality, or perhaps lack of affordable housing.

It's a very clever move. It's also a political move. This is dirty politics, not something to be celebrated. This is actually a cruel joke. mynorthwest.com

Shoplifting Rehab Across the Pond
Rehabilitation scheme stops millions of pounds of shoplifting

A pilot scheme in the West Midlands to stop serial shoplifters has been so successful it has prevented £2m of thefts in six months

The scheme concentrates on rehabilitating offenders who have drug and alcohol issues. Tom McNeil, the West Midlands assistant PCC, told the all-party parliamentary group on retail crime this week that the initiative was a partnership between police, rehabilitation centres and retailers.

He said: "It's not about being soft, the process is still about justice and safety of the public first. But it's also about taking a multi-faceted approach so that repeat offenders can get the help they need to change their ways, rather than being passed around from one organisation to another."

NFRN national president Narinder Randhawa, whose business is based in the West Midlands, welcomed the news. He said: "Retail crime, whether it is shop thefts or attacks on shopworkers, is one of the biggest issues facing our industry, so I am pleased to see the West Midlands PCC and police taking steps to address the problem."

"I hope other PCCs and forces take note and follow the example set by the West Midlands in a bid to break the cycle of repeat offending." talkingretail.com

NYC's Crime Wave
Op-Ed: Adams needs to do more, and faster, to halt soaring NYC crime
When it comes to combatting soaring crime, especially in the city's subways, Mayor Eric Adams needs to start chugging along a lot faster - stat.

On Monday, Adams rolled out his comprehensive subway safety plan to a slow start, especially after a violent holiday weekend that included a string of stabbings and an assault with a metal pole.

Adams describes his plan's no-nonsense goal as two-pronged: crack down on subway rule-breakers and get vagrants into shelters. The plan involves mobilizing 30 specialized teams of cops, homeless-outreach workers and behavioral clinicians into high-priority stations.

Crime and the economy are the top issues in New York voters' minds and the controversy over the Democrat-approved law eliminating cash bail for many crimes is a potential liability for Gov. Kathy Hochul and her party, according to the survey conducted by Triton Polling Research and obtained by The Post.

Asked if Hochul should overturn the progressive bail law - 63.5 percent agreed, while only 18.5 percent disagreed, with the rest of the 777 respondents having no opinion. Of that total, nearly half the voters - 46 percent - "strongly" agreed the bail law should be changed. nypost.com

DOJ's 'Project Safe Neighborhoods'
'Project Safe Neighborhoods' forming in Portsmouth to curb violence
"The Safety Neighborhood Project is a project that began some 20 years ago and it's around the country," explained Turner. "It's in all 50 states, but it's to help neighborhoods combat safety and violent issues within their communities."

Project Safe Neighborhoods is in cities like Detroit. Now, it's also starting up in Portsmouth.

The United States Justice Department program describes itself as "a nationwide initiative that brings together federal, state, local, and tribal law enforcement officials, prosecutors, community leaders, and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them."

"It's a challenging time for the city of Portsmouth," said Turner. "This is our way of saying we're tired of the nonsense, we're tired of the violence, we're tired of the shooting, but we can't look at anybody else to solve it. We have to be a part of the solution."

A major goal of the initiative is to incorporate research and data analysis, and lessons learned from other violent crime reduction initiatives, to inform its decision-making on the most effective violence reduction strategies. wavy.com

'The Old West': Changing the Definition of Law Enforcement
Tenn. bill would classify some gun owners as 'law enforcement'
A Tennessee bill that seeks to expand gun rights has drawn concern, criticism and confusion among police officers and others. According to WREG, the bill would expand the state's definition of "law enforcement officer" to include non-sworn citizens who hold certain gun permits. One firearms instructor even likened the bill to a "regression to the Old West," ABC News reported.

County officials worried the legislation could create problems for police. "It would create confusion and unnecessary chaos for law enforcement officers," said Shelby County District Attorney General Amy Weirich to WREG.

According to the report, the bill would allow citizens with enhanced handgun carry permits to take guns into private businesses that ordinarily prohibit firearms. Rep. Chris Hurt, one of the bill's sponsors, says the bill doesn't mean ordinary gun holders will get law enforcement powers.

Hurt says the bill has been the subject of "much confusion" and he is working to "further clarify the language." police1.com

San Francisco's Union Square to Lose Another Retailer
Crate & Barrel in San Francisco's Union Square to permanently close in March
The Crate & Barrel at 55 Stockton Street in Union Square will shutter on March 23, an employee told SFGATE on Sunday afternoon, and the store has already begun to roll out sample sales in order to liquidate its stock. When asked for the reason for the closure, the employee referred SFGATE to a spokesperson for the Illinois-based chain, which did not provide comment by time of publication.

But if previous retail closures are any indication - Abercrombie & Fitch, DSW, and two Walgreens have all shuttered in recent months - it's an ongoing battle for companies to keep their brick-and-mortar stores afloat as customers turn to online shopping alternatives. The Shops at Tanforan, a 51-year-old mall in San Bruno, is also closing soon to make way for a massive biotech campus and housing. sfgate.com

Rochester Man Pleads Guilty to Arson of 2 Retail Stores in St. Paul, Including Goodwill store
MINNEAPOLIS - A Rochester man who fled to Mexico to evade apprehension, and was later located and returned by Mexican authorities, has pleaded guilty to arson of two retail stores and a school during the summer of 2020. justice.gov

Seattle bakery closing downtown location over 'countless safety concerns'

'Inventory Mountains' Caused Family Dollar Rat Infestation
Family Dollar rat infestation is unsurprising, retail consultant says, after witnessing chaotic inventory pile-up at its parent company's stores

Rat infestation led to Family Dollar closing more than 400 stores.

Family Dollar closed 404 stores this week after a US government agency investigation found 1,000 rodents at one of its distribution centers in Arkansas. The company on Friday announced that it was gradually reopening some of the stores.

News of these infestations didn't come as a surprise to everyone, however. Scott Mushkin, CEO of consultancy firm R5 Capital, told Insider that his team's recent visits to more than 50 of Family Dollar's parent company's stores, Dollar Tree, highlighted issues with chaotic backrooms and inventory pileups that could lead to rodent infestations.

"To call it chaotic is an understatement, there were inventory mountains," he said on a recent call. "I've never seen anything like what we witnessed in those back rooms ... there was plenty of cover for rodents to move around."

Mushkin's team created a report after visiting 50 Dollar Tree stores, which was shared with investment analysts and reviewed by Insider. The report shows stacks of boxes piled high in stock rooms at various Dollar Tree stores across the US.

"Store after store there were piles of inventory. In our opinion, there is a very low probability that the company fully understands its inventory position at the stores," the report said.  businessinsider.com

Russian Liquor Removed From Stores Amid Ukraine Invasion
Growing number of states banning Russian alcohol from state-owned retailers
In response to the war in Ukraine, Virginia has joined states across the country in banning Russian-made liquor from state-owned ABC stores - the sole retailer of distilled spirits in the commonwealth.

With the support of Gov. Glenn Youngkin (R), the Virginia Alcoholic Beverage Control Authority soon announced it was removing seven Russian-sourced vodka brands from its shelves while still offering a number of spirits with "Russian-themed monikers," including Stolichnaya and Smirnoff, that are produced elsewhere.

Utah, Ohio and New Hampshire have already done the same.

Bars across the country have removed Russian vodkas from their shelves as well and are instead featuring the lesser-known Ukrainian vodka Kozak.

Canadian officials have also ordered Russian liquor to be removed from stores, including in the provinces of Newfoundland and Labrador, Ontario and Manitoba, while several international sports bodies have pulled their events from Russian cities. washingtonpost.com

Wage War Heats Up - Target Seeks to be 'Wage Leader in Every Market'
What's Walmart's Counterpunch?

Target Is Raising Its Minimum Wage to $24 an Hour in Some Markets
Target said it would pay some employees a higher starting wage and widen the range of people eligible for company health benefits, the latest move by the retail chain to attract and retain staff.

The Minneapolis-based retailer on Monday said its minimum hourly pay range would be between $15 and $24 for employees in its stores, supply-chain facilities and headquarters. The exact wage, Target said, will rely on industry benchmarking and local market dynamics, but that it seeks to be "a wage leader in every market where it operates."

Target said it would invest as much as $300 million in the bumps to pay and benefits for employees.

Starting in April the company is enabling store associates who work at least 25 hours a week to enroll in a Target medical plan, down from at least 30 hours a week. Target said the change will enable roughly 20% of staff to be newly eligible for the company's healthcare benefits. wsj.com

High-tech security can't stop theft, frisky patrons at employee-free businesses
Fledgling chains of high-tech gyms and recreational spots that don't have on-site employees are cropping up nationwide - and some are grappling with shoplifting and randy customers.

Their novel business model is employee-lite during a stubborn labor shortage - and they seized on a soft commercial real estate market during the height of the pandemic to secure locations at bargain prices.

One's a ping pong parlor where customers book a reservation with their phones and let themselves in - all unattended; another's a pool hall that works the same way.

But even landlords have questions about renting to businesses that have no one manning the store, conceded David Silberman, co-founder of PingPod, PingPod, which debuted in early 2020, has had to address some inappropriate behavior.

PingPod's security team interrupted the lovebirds via the intercom, "reminding them to keep it clean," Kogler said. "We'll 'voice down' [on the intercom] when things like that happen," he added.

Sticky-fingered customers have also made off with some of the merchandise that's for sale on-site, including $24 hats, $18 T-shirts, snacks and beverages.

Their nearly worker-free presence comes at a time when fast food restaurants, retailers and warehouses and delivery operations are relying more heavily on technology to replace hourly workers. nypost.com

Estée Lauder Fires Executive Group President John Demsey

Senior executive had posted a meme on his Instagram account that contained a racial slur and joke about Covid-19

Mr. Demsey, 65 years old, served as executive group president and oversaw some of the company's biggest brands including MAC and Clinique. He had been with the company 31 years. Mr. Demsey "was informed he must leave the company, effective this week," the memo said. An Estée Lauder spokeswoman said he agreed to retire. wsj.com

100 Starbucks File for Union Elections
Starbucks cafe in Mesa, Arizona, votes to unionize, dealing a blow to the coffee chain
It's now the third company-owned Starbucks location to vote in support of unionizing and the first outside of the Buffalo, New York, area.

To date, more than 100 Starbucks locations have filed for union elections, all within the last six months and doubling their count in the last month alone after victories in Buffalo. Those cafes represent a small fraction of Starbucks' U.S. footprint, which includes nearly 9,000 company-owned restaurants, but it's a sign that the restaurant industry could see its historically low unionization rate rise. cnbc.com

Foot Locker to open 300 community-centric "power stores" format, off-mall focus

Robots, robots everywhere - especially in the store

NRF Stresses Urgency with West Coast Port Contract Negotiations

American gun sales continue to surge, new research finds


Quarterly Results

Macy's Q4 comp's up 28.3% on owned basis and up 27.8% on an owned-plus-licensed basis versus Q4 2020: up 6.6% and up 6.1% versus Q4 2019
   Macy's Q4 Digital sales up 12% over Q4 2020, up 36% over Q4 2019

Macy's full year 2021 Comparable sales up 43.0% on an owned basis and up 42.9% on an owned-plus-licensed basis versus 2020; up 3.1% and up 3.0%, respectively, versus 2019.
   Macy's full year 2021 Digital sales increased 13% versus 2020 and increased 39% versus 2019.

Foot Locker Q4 comp's up 0.8%, total sales up 6.9%, FY 2021 comp's up 15.4%, total sales up 18.7%

Etsy Q4 sales up 16.2%

Bath & Body Works Q4 sales up 11%, FY 2021 total sales up 22%

Canada's: Loblaw Q4 sales up 2.8%, FY 2021 sales up 0.9%
   Retail Segment Q4 up 2.6%
   Food Retail (Loblaw) Q4 comp's up 1.1%, FY 2021 sales up 0.3%
   Drug Retail (Shoppers Drug Mart) Q4 comp's up 7.9%, FY 2021 sales up 5%
   E-commerce Q4 sales down 8.4%

SpartanNash Q4 corp-owned stores comp's up 7.3%, sales up 0.2%, FY 2021 down 4.5%

Sprouts Farmers Markets Q4 comp's down 1.1%, sales down 7%, FY 2021 comp's down 6.7%, sales down 6%
 

Online Fraud-Fighting Tools
Firms tackle ballooning BNPL fraud

In another sign of buy now-pay later's skyrocketing popularity, companies that tackle fraud are rolling out tools to address risk related to the payment option.

Where consumers go, fraudsters follow. The explosion of buy now-pay later popularity means it's become an increasingly vulnerable target for payments fraud.

As BNPL grows online and in stores - global transaction volume is expected to reach $680 billion by 2025, according to Insider Intelligence - more businesses have jumped on the bandwagon, from card companies to banks. Additionally, this burgeoning area of payments has prompted adaptations within the industry; credit bureaus, for example, have recently announced changes in response to BNPL's rise.

Another adjustment: More heightened awareness of fraud threats related to paying in installments. Experian's recent Future of Fraud forecast projected BNPL lenders are likely to see an uptick in identity theft and synthetic identity fraud this year.

With a lot at stake for merchants and lenders, this flurry of fraud activity in BNPL has prompted more action from companies looking to thwart deception in this payments space. Juniper Research estimated online payment fraud losses from 2021 to 2025 will amount to a cumulative $206 billion, and spending on fraud detection and prevention services will exceed $11.8 billion globally in 2025.

The current BNPL vetting structure, which typically involves soft pulls on a consumer's credit history, makes the payment method more vulnerable and susceptible to fraud, said Ashley Usher, chief integration and information officer at Fortis Payment Systems, a payments and commerce company headquartered in Novi, Michigan.

"The lack of credit checks allows fraudsters to purchase merchandise through stolen credit cards and even avoid completing the divided payments altogether," Usher said in an email. paymentsdive.com

The Rise of 'Dark Stores'
Online Shopping Is Reshaping Real-World Cities

The uptick of grocery delivery apps led to the rise of "dark stores": empty warehouses right in city centers. They're changing the design-and feel-of neighborhoods.

These ghost storefronts-often called "dark stores"-are warehouses in all but name, yet they look markedly different from the gargantuan spaces where older online grocery companies like FreshDirect store their goods. Traditional warehouses are zoned to regions outside of commercial districts, meaning they will be set apart from areas with lots of walking traffic. Dark stores are located in retail storefronts on main streets, near the heart of busy neighborhoods, but they serve only ecommerce customers. And they've gone from a niche phenomenon discussed largely in retail industry circles to a feature of major American cities. wired.com

Rakuten CEO Mikitani to donate 1 billion yen to Ukraine

US ecommerce grows 14.2% in 2021