As Other Retailers Flee Big Cities, Home Depot Remains
Home Depot is investing heavily in technology to prevent organized retail crime

Home Depot Says It's Committing to Cities That Rivals Flee Over Crime Concerns
Home Depot Inc. has remained committed to major US cities including Oakland, California, Detroit and Philadelphia as rampant retail theft has driven rivals out, according to Chief Executive Officer Ted Decker.

The home-improvement retailer, which has been investing heavily in technology to prevent organized retail crime, saw a notable increase in theft beginning about five years ago, Decker said. In 2023, the company experienced more than 142,000 instances of shrink, which includes petty crimes, goods stolen or lost by employees, and organized retail crime.

In one case last year, a former pastor in Florida was accused of running an organized crime ring that stole at least $1.4 million in home-improvement merchandise from Home Depot.

"This is billions of dollars we've had to absorb into our cost structure," Decker said in an interview in Las Vegas. "This is the result of very, very serious societal problems."

Because of Home Depot's level of profitability, it has opted to remain in cities where other major retailers have closed stores, Decker said. In Oakland, for example, restaurant chains including Yum! Brands Inc.'s Taco Bell and In-N-Out, as well as Target Corp., have shuttered locations in recent months as a result of rising crime.

But when Home Depot initiated a plan last year to open 80 new stores over five years, widespread theft led it to remove some cities that it had penciled in to get new locations. The decision was meant to prevent both potential losses and threats to employee safety, Decker said.

Efforts that have helped include shopping carts that lock when customers haven't paid, license-plate-recognition cameras in parking lots and a theft-input portal where employees can report crimes. But "it's just sort of capping the problem," Decker said.

Merchandise losses, including from theft, are "significant enough to be one of my highest priorities from a financial perspective," Chief Financial Officer Richard McPhail said in an interview. "The narrative is absolutely not overblown."  bnnbloomberg.ca

   RELATED: Home Depot Remains Committed to High-Theft Locations


Retailers Ditch Self-Checkout Amid Theft Surge

Target Responds to Theft By Changing Self-Checkout Rules Nationwide
Target has placed a 10-item limit on customers using its self-checkouts

Thefts Cause Target To Change Self-Checkout Rules

Thanks to a multi-million-dollar theft problem, Minneapolis-based Target and competitor Walmart are both changing their self-checkout rules.

Minnesotans who shop and use self-checkout registers at Target and Walmart stores should be prepared for some changes as the retailers and others fight a multi-million-dollar theft problem

Minneapolis-based Target has placed a 10-item limit on the number of items customers can scan at its honor system self-checkout registers, effective Sunday at nearly all of its 2,000 stores.

Walmart also has implemented self-scan item limits at some of its more than 10,500 stores nationwide.

The changes come after Target closed nine stores across four states last year because of overwhelming theft and crime at those locations. The stores closed were located in New York City, Seattle, Portland, and the San Francisco area. All nine locations were shuttered on Oct. 21.

Target said its self-checkout lanes during the pandemic were popular with customers who wanted to socially distance, but surveys since have shown customers prefer a more traditional retail experience. Individual stores will have the flexibility to open staffed lanes or set self-checkout hours that fit their customers' needs, the retailer said.

Dollar General has placed limits at thousands of its stores, including 300 with the highest shoplifting rates, where the option has been entirely eliminated. patch.com

   RELATED: Target Introduces New Express Self-Checkout Nationwide


Removing Self-Checkout from 300 Dollar General Stores to Fight Theft
Dollar General drops self-checkout at hundreds of stores to reduce theft

Dollar General reported that year-over-year shrink headwinds continued to build in 2023

Dollar General is pulling back on self-checkout as it tries to curtail retail theft across its stores.

The company will remove self-checkout registers from 300 stores that have the biggest issue with shrink - an industry term referring to lost or stolen merchandise - during the first half of the year, CEO Todd Vasos told analysts on a Thursday earnings call.

Currently, the company has self-checkout options available in more than 14,000 stores. However, it is deploying three initiatives to change its self-checkout strategy this year as it tries to reduce the ongoing headwind.

The company has already started converting self-checkout registers to assisted-checkout options in approximately 9,000 stores. "This is intended to drive traffic first to our staffed registers, with assisted-checkout options available as second or third options to reduce lines during high-volume time," Vasos said.

Vasos said the company believes "these actions have the potential to have a material and positive impact on shrink" in the second half of the year and into 2025. foxbusiness.com


Theft Crisis Reaches 'Tipping Point' in California
Law enforcement, mayors, DAs & retailers are calling for reform

California, Grappling With a Retail Theft Crisis, Reaches Its 'Tipping Point'

Momentum is growing to reform the 2014 voter-enacted Prop 47, which critics say led to 'an explosion in retail and cargo theft' causing store closures and 'billions of dollars in economic losses.'

For nearly 10 years, a voter-enacted measure known as Proposition 47 - which reduced penalties for drug offenses, petty theft, and commercial burglary - has been the law of the land in California.

Yet that could change as the state battles a wave of retail theft. Momentum is growing to overhaul Prop 47 - a criminal justice reform that made thefts of less than $950 misdemeanors rather than felonies, which advocates pushed as a way to reduce mass incarceration.

Critics say the results of the 2014 reform have been rising crime in the state's largest counties, as thieves rampage stores without fear of penalty. Theft and violence plaguing California cities have forced the closure of businesses.

In California, a growing coalition backed by law enforcement members, mayors, district attorneys, and businesses is leading efforts to reform Prop 47 through a ballot petition called “​​The Homelessness, Drug Addiction, and Theft Reduction Act."

In addition to reforms targeting drug trafficking and reducing homelessness, the measure aims to increase penalties for repeat retail thieves and would address "smash and grab" thefts committed by organized groups or mobs of people.

"California has reached a tipping point in its homelessness, drug, mental health, and theft crises," the proposal reads. Prop 47's reforms have led to "an explosion in retail and cargo theft causing stores throughout California to close to protect employees and customers from criminal activity that disrupts the efficient delivery of products directly to consumers and creates billions of dollars in economic losses to our local communities and state," the proposal adds.  nysun.com


NY's Debate Over Retail Theft Penalties Heats Up
Gov. Hochul & Democrats in Legislature disagree on raising penalties for retail theft
As part of a $45 million plan to combat retail theft, Gov. Kathy Hochul wants to stiffen penalties against retail theft and anyone who assaults a store employee. But Democrats in the State Legislature are pushing back.

She highlighted the proposals at a news conference this week at the State Capitol, saying shoplifting incidents involving physical force have more than doubled. She appeared with grocery store and other shop owners, who back her efforts. She wants to make the crime a Class D felony.

The governor also wants to empower the State Police to investigate and prosecute interstate and even international retail theft rings. She's set aside $25 million and is directing 100 more troopers to be hired.

Senate Deputy Majority Leader Michael Gianaris said the Senate wants to look at other ways to fight retail theft, including targeting repeat offenders.

When Democrats gained the majority in the Legislature in 2019, they moved to reform some of the state's criminal justice laws, including the controversial bail reform law, which made far fewer crimes bail-eligible.

Some critics say that has contributed to the rise of retail theft, something the Democrats dispute. Many progressive Democrats in the Legislature are not in favor of increasing criminal penalties without first determining any potential adverse impact on communities of color.

Gianaris said Democrats remain concerned about the rise in shoplifting, though, and will take steps to try to reduce it. wxxinews.org


Retailers Applaud Kentucky AG's Efforts to Fight Rampant Shoplifting
Kentucky AG Convenes Roundtable Discussion on Reality of Retail Crime
Attorney General Russell Coleman convened a roundtable discussion earlier this week on the reality of retail crime in Kentucky. The panel included the members of the Kentucky Retail Federation, County and Commonwealth's Attorneys and local, state and federal law enforcement. At the event, General Coleman highlighted the serious threats shoppers, retailers and employees face amid rampant theft.

"I am proud to be part of this effort not just as Attorney General, but as a dad who wants my family to be able to shop without fearing for their safety," said Attorney General Coleman. "The volume of 21st century major retail crime feels like lawlessness, and we can't accept turning a blind eye."

"Across the Commonwealth, organized crime continues to be a challenge facing retailers. We know the impact is significant, costing tens of billions of dollars a year," said Kentucky Retail Federation Board Chair and Target District Senior Director Travis Farmer. "I appreciate Attorney General Coleman convening the first of many discussions to combat the rampant shoplifting problem."

"These criminals don't recognize county or city lines, and neither should we," said Chief Jeremy Thompson of the Elizabethtown Police Department. "Law enforcement, prosecutors and retailers large and small across the state and the country need to work together to deter this crime. It's great to see that leaders like Attorney General Coleman are paying attention to this real issue."

"We may not have the same resources as the big box stores, but we feel the same straining impacts of retail crime," said Rob McGlone, Loss Prevention Manager for Newcomb Oil in Bardstown. "I look forward to continuing this conversation about protecting our workers, customers and the communities we serve." marshallcountydaily.com


Facts about straw purchases of weapons, and what's being done to stop them

What Convictions of Mass Shooter's Parents Could Mean for Gun Control in the U.S.
 

Is the San Francisco Exodus Over?
One Bay Area county sees population gains in 2023. Is the exodus over?

One Bay Area county saw its first year of population growth since 2020

Another year, and another census update showing the Bay Area's population has dropped. But the newest population estimates for July 1, 2023, released this week by the U.S. Census Bureau, show the losses were the smallest the region has seen since the pandemic marked the beginning of a dramatic exodus that is now slowing and showing signs of reversing.

Of the core Bay Area counties, San Francisco was the only one that saw an increase in population in 2023 after having the most dramatic drop early in the pandemic.

"We seem to be turning a corner on the work-from-home phenomenon." And like others, he sees the explosion in buzz around AI technologies such as ChatGPT as a big magnet for San Francisco and Silicon Valley. "If you're a person who is into big data, machine learning, massive computational processing, futuristic stuff, this is where you would want to be."

In the rest of the Bay Area, counties are still losing residents year over year. That puts them in the minority of counties in the country. mercurynews.com

So When Will Retail Return to San Francisco?
Store closures aren't SF's fault-but they are its problem. Here's how to solve it

Former Gap Inc. chairman Bob Fisher on new ways to cure the city's retail blues.

The convenience, scope and low cost of goods bought on the internet have permanently reduced retail store-bought sales by 30-40%, a massive number that has triggered an equally massive drop-off in store-based customers and an epidemic of store closings across America.

The pandemic just added fuel to this fire. Not only did people stop coming into downtowns throughout our country, but the rise of a viable work-from-home employment model allowed many to stay away from business centers after the pandemic was over.

And, as we all know, anxiety around whether San Francisco's streets are safe and clean is another serious ingredient contributing to a decline in people choosing to be downtown. This means our core downtown area is lacking a lot of customers who might otherwise be there. Fewer customers equals fewer sales and less revenue to keep the doors open.

Simply put, we must adapt. And there has to be a robust plan to help that happen.

We know that internet shopping is not going away nor is the work-from-home model. To attract more people to the city in the new world we're facing, we must support the development of options that address people's new expectations and interests. The sooner we get behind the need for change and come to an agreement on what that may mean and look like, the better off we will be.

Our city's unique history, geography, neighborhoods and innovation-based economy are strong foundations for building such a bright future. But we must do the work to achieve it. sfstandard.com


Dozens of Businesses Across the Country Shut Down for the Day
70+ brands shut down on Monday in an effort to advocate for federal paid leave legislation

More Than 70 Brands Close Their Doors for the Day, Call for Paid Leave

Today, organizations across the country joined forces with the national campaign Paid Leave for All, calling on Congress to pass paid family and medical leave.

Brands are taking a stand on paid leave--and taking the day off.

Today, more than 70 brands and organizations in more than 20 states are giving all employees a paid day off and calling on Congress to pass paid family and medical leave. Participating companies and partners--from the parenting product company Bugaboo to Rhode Island's Economic Progress Institute--will also share an Instagram graphic in solidarity, publicly declaring to followers: "We're Closed to Pass Paid Leave."

Brands joining in on Monday's movement include a wide variety of maternity, beauty, fashion, and lifestyle companies like Hatch, Tender Foundation, and ROC United (who are all a part of the founding committee), as well as Bugaboo, elvie, HeyMama, Lalo, and more. All participating establishments will also show their support by sharing an Instagram graphic.

Paid Leave for All, a national campaign that launched in 2019, organized this collective action to provide a "symbolic look at what could happen if more women exit the workforce and businesses close their doors without the protections of federal paid family and medical leave," according to its press release.

"We've never engaged so many business voices in quite this way," says Dawn Huckelbridge, founding director of Paid Leave for All.  inc.com  instyle.com
 
   RELATED: Here's why you can't shop your favorite stores today


Fabrics retailer Joann files for bankruptcy
Joann, the 81-year-old fabric and craft retailer, has filed for bankruptcy as it struggles with customers cutting back on discretionary spending.

In a statement Monday, the Ohio-based company said it filed for Chapter 11 bankruptcy protection and has secured $132 million in fresh funding that helps reduce its debt in half, which had ballooned to $1 billion. Its roughly 850 stores and website will remain open for business.

Joann's revenue has been on the decline in recent years, except for a brief pandemic boom during the height of Covid when people stuck at home spent more money on arts and crafts. However, that has since faded, and inflation has soared, prompting customers to spend less on non-essential items. cnn.com


Ulta to expand into Mexico in 2025
The beauty retailer previously planned to grow into Canada, but ditched those efforts in 2020.

Will Kohl's and Babies"R"Us Be a Beneficial Alliance?

Survey: Retailers should focus on loyalty, brand awareness
 

Senior LP & AP Jobs Market

Senior Director, Asset Protection and Risk Management job posted for Gardner-White Furniture in Auburn Hills, MI
Provide leadership and strategic direction on shrink initiatives and programs to enhance company profitability. Develop, implement, and maintain Asset Protection programs ensuring they effectively reduce shrinkage, control cash, maintain a safe work environment, and safeguard company assets. This includes fraud awareness and prevention programs, policy & procedure development, and revisions. recruiting.paylocity.com


Director, AP & Safety job posted for Guitar Center in Westlake Village, CA
As the Director of Asset Protection, you will develop, implement, and oversee strategies and programs aimed at safeguarding the company's assets, minimizing losses, and ensuring a secure and safe environment across all channels. You will lead a team of professionals and collaborate with various departments to create a comprehensive asset protection framework. careers.guitarcenter.com


Dir. Cybersecurity Investigations job posted for Johnson & Johnson in Raritan, NJ
This role requires someone with experience building and running a diverse team and leading investigations within large and complex global enterprises. Beyond domain expertise, this person will also need to possess very strong program management and inter-organizational skills. Responsibilities will include the management, accountability, and oversight of the investigations team and program. linkedin.com
 

Last week's #1 article --

Fighting ORC With Real-Time Heat Maps, Advanced Surveillance & More
LPRC testing wide range of high-tech solutions to help retailers fight theft

How AI-powered technologies can eventually eradicate retail crime

Advanced surveillance systems and heat maps are helping retailers fight back against organized retail crime.

Retailers are hoping AI-powered surveillance and other technologies can eventually make theft a thing of the past. Video surveillance sy stems, locked cases that can be operated by smartphones, and AI-powered heat maps are just a few of the anti-theft advancements on the market.

"We're looking at a whole lot of other AI plays here," Read Hayes, head researcher of the Loss Prevention Research Council (LPRC) at the University of Florida, told Yahoo Finance on NEXT.

Hayes's group develops and tests a wide array of AI-powered theft prevention technologies. The LPRC is funded by the university and dozens of the world's largest retailers - from Target to Walgreens - which pay an annual membership fee to access the lab's findings and research.

The lab in turn works on theft-prevention solutions that those retailers can all access. finance.yahoo.com