RFID Gets A Second Look as Theft Soars
Why retailers are finally embracing RFID to manage inventory & combat theft

Amid the rise of omnichannel shopping and organized retail thefts, retailers are looking at an old solution to solve new problems.

Radio-frequency identification, otherwise known as RFID, provides retailers with more accurate information to track products, where they are and how they are being sold. Through RFID, retailers can also get a better understanding of exactly which products are stolen and where to add more security in stores.

Though the technology has been around for decades, retailers have increasingly embraced RFID as it has become more cost-effective. Walmart in January said its suppliers in some departments are required to include RFID tags on all merchandise by September this year - not the first time it has attempted such an initiative. Nordstrom also issued a similar mandate to suppliers just a few weeks ago. Meanwhile, Macy's has increasingly been utilizing the technology as high-profile thefts hit retailers across the U.S.

The rise of omnichannel shopping growing alongside retail thefts have made the use of RFID increasingly important. A report from McKinsey in May said that the average cost of an RFID tag has dropped 80% over the last decade to around four cents, which experts say has boosted adoption rates.

Why is RFID getting a second look?

RFID was ahead of its time. Its roots can be traced back to World War II as military use technology, Tony D'onofrio, CEO of consulting firm Prosegur Global Retail said. Walmart in the early 2000s initially pushed its suppliers and vendors to use the technology. But eventually, the initiative fizzled out for a variety of reasons.

"It takes a while for some of these technologies to actually evolve to where we're at, and the challenge that RFID has, in some ways, was competing with a barcode," D'onofrio said. He added that barcodes were a much cheaper solution earlier on, but it was time-consuming as workers needed to properly angle scanners and count thousands of items.

Now, Walmart is ready to give RFID another go, and with this, experts expect industry-wide adoption to continue. Nordstrom said it wants to implement RFID to anticipate and address its customer's expectations. Zara has been using the technology to track products across various countries and replenish clothing racks faster.

Retailers like Victoria's Secret have recently said they are also testing RFID tags to prevent shoplifting. Having an inventory equipped with RFID doesn't necessarily prevent those thefts from happening, but it provides detailed information on the colors or sizes of the stolen items.  modernretail.co

NYPD Blasts Target for Attracting Shoplifters
Police Chief Takes Aim at Target's Shoplifting Policy
Shoplifting is rising on the Upper West Side, as is NYPD's frustration with at least one retailer, Target at 795 Columbus Avenue [98th Street].

"One-third of our petit larcenies are coming from that Target," Deputy Inspector Naoki Yaguchi told a packed house at Wednesday evening's 24th Precinct Community Council meeting held at Bloomingdale Library.

During the January 1st through March 13th period, the 24th recorded 369 total petit larcenies vs.178 in 2021, an increase of 107 percent, according to NYPD CompStat data. Going by Yaguchi's math, an estimated 123 incidents were from the Target.

"We are having a really serious problem with Target shoplifting. They don't call us when it happens. They call us hours after the incident, sometimes days after the incident. It doesn't give us a chance to try and catch the person who did it," said Yaguchi. "In 17 years on the job, I've never encountered a situation where the company essentially refuses to call us. But they're okay with calling us days later to make a report that satisfies some insurance requirements that they have."

A local shared her experience. "I saw a shoplifter at Target filling up his bag with frozen seafood products and just walking out." When she alerted the manager on duty, "The attitude was, 'we have insurance; we don't need to worry about this right now.'"

Yaguchi indicated the situation may be attracting people with a propensity to commit crimes to the area. "They make calculations just like us. They know the cops aren't coming because Target's not calling. That, I'm sure, gets around."

Yaguchi said he'd like to see the community put pressure on the store to change their ways. "Boycott!" exclaimed another local woman. When called by WSR, a store manager said she could not comment on any policies, referring us to Target's corporate team. westsiderag.com

Another State Enacts ORC Legislation
Polis signs bill targeting online marketplaces that enable organized retail theft

The bill is the first of many expected to address crime this legislative session.

Beginning on Jan. 1, online marketplaces operating in Colorado must collect significantly more information on the people selling goods through their sites to cut down on organized retail theft.

Colorado House Bill 1099, signed into law this month by Gov. Jared Polis, is the first crime-reduction bill among a host that are expected to be signed into law this session, and it comes after major chains like The Home Depot and Walgreen's reported massive spikes in theft losses in recent years.

The Buy Safe America coalition, a group of retailers pushing for reform such laws both in Congress and state governments, estimated that Colorado has suffered $642 million in losses and 9,000 jobs lost because of the recent wave of crime.

Retailers argued in two committee hearings that the jump in such theft is fueled by the ease of selling stolen merchandise unregulated online. Perpetrators can grab tens of thousands of high-dollar equipment at a time from stores and either sneak out with it or threaten violence against security guards that are told by corporations to stand down rather than risk harm or a violent public showdown.

The idea behind HB 1099 is that if individuals know they are easily identifiable - and that their information can be handed over to law-enforcement agencies investigating theft rings - they are less likely to use the sites as fences. The bill may reduce criminal activity if selling stolen goods becomes more difficult.

"This legislation is a huge win for Colorado consumers and businesses. By bringing transparency and accountability to leading e-commerce platforms, shoppers will now have a safeguard in place to protect against the counterfeit and stolen products that have been running rampant on these platforms for too long," said Michael Hanson, spokesman for the Buy Safe America Coalition, in a news release.
 bizjournals.com

Retail Theft Costs $1.1B in Arizona
State House Commerce Committee looks at effects of organized retail theft
Arizona Retailers Association Executive Director Michell Ahlmer testified that the value of theft in Arizona is approximately $1.1 billion.

According to Kristin Reif, director of external affairs for Philip Morris International, Arizona is particularly susceptible to illicit trade, counterfeiting and organized retail crime due to the state's proximity to the border.

"The tremendous growth in E-commerce has brought new markets for illicit sales. In the last two years, we've seen unprecedented online fraud and piracy, including everything from PPE to the COVID vaccines," Reif said. "Since the beginning of the pandemic, there has been a roughly 40% increase in online counterfeited goods. It is clear that counterfeiting, organized retail crime, and illicit trade is a real and growing threat to Arizona businesses, Arizona taxpayers, and Arizona families."

Ahlmer said retail theft has an impact on the retail industry's workforce, as well: "This is an increasingly violent crime," Ahlmer said. "No one wants to work where they feel threatened. The jobs lost is an issue that is of high concern"

In Arizona, the Arizona Organized Retail Crime Association (AZORCA) has been taking steps to curb the economic impact of retail crime. This statewide partnership includes law enforcement and retail investigators that "share cross-jurisdictional information to identify, disrupt, and apprehend Organized Retail Crime crews."

The testimony concluded with a call to action for state and local governments to rethink current shoplifting laws in order to create a system that better allows for prosecution of these crimes. chamberbusinessnews.com

Pima County businesses look to combat retail theft

As Some States Expand Facial Recognition Use, Another Pulls Back
A state commission wants new limits on how police use facial recognition
A Massachusetts commission has proposed recommendations that the Judiciary Committee's House chairman says will balance implications of facial recognition technology on individual privacy rights, and the "proper role" it can play in the criminal justice system.

While legislative leaders have not flagged it as a near-term priority, the Legislature in the 2020 policing reform bill outlined parameters on the use of the technology by law enforcement and created the commission to investigate and make recommendations governing usage of facial recognition by government. Now, that panel has returned with ideas for the Legislature to consider.

The recommendations include:

● Limiting and regulating law enforcement's acquisition, possession, access or use of any facial recognition system, or authority to enter into a contract for those purposes, absent express statutory authorization;

● Requiring a warrant issued by a judge based on probable cause that an unidentified or unconfirmed individual in an image has committed a felony before permitting a facial recognition search, with exceptions for emergencies or to identify a deceased person;

● Prohibiting the use of "emotion recognition" and application of facial recognition technology in live surveillance and tracking;

● Centralizing law enforcement use of facial recognition to a state-level facial recognition operations group within the Massachusetts State Police;

● Including explicit requirements for notification to defendants identified using facial recognition technology and the admissibility of information received from an unlawful facial recognition search in criminal proceedings;

● Imposing more stringent data collection and reporting requirements on the use of the technology. wbur.org

Editor's Note: As the Daily Reported on March 15 and March 18, both Virginia and New York are taking steps to expand the use of facial recognition technology amid the nation's crime surge. In New York's case, police claim the technology has helped lead to thousands of arrests.

Russia's Copy-Cat McDonald's and Rip-Off Retail Brands
How store closures and luxury goods export bans could lead to a rise in rip-off brands and counterfeit products in Russia

Luxury goods export bans could give rise to the counterfeit market in Russia

Over the past few weeks, dozens of retailers have closed shop in Russia, and export bans on luxury goods will make it harder for consumers to get their hands on expensive cars, art, and designer handbags produced in the US, UK, and EU.

While the intention of the latter is to deprive the country's elite - and often Putin's allies - of the world's most luxurious products, it could end up giving rise to a counterfeit market or lead to more gray market goods - items that are sold outside the manufacturer's official distribution networks - circulating in Russia.

For other western brands, there's a growing risk that pulling out of Russia could lead to copy-cat versions cropping up in their place. This month, a Russian fast-food chain called Uncle Vanya filed to trademark a logo that bore an uncanny resemblance to McDonald's golden arches.

Lands said that Russian authorities could approve trademarks of this kind in retaliation to Western sanctions, and there's not a lot that Western brands could do if it did happen. businessinsider.com

Brick & Mortar Comeback?
Online Brands Try a Traditional Marketing Strategy: Physical Stores

As digital advertising costs rise, more direct-to-consumer retailers are opening shops, leasing turnkey options or securing short-term spaces in other stores.

Some larger online brands - like Warby Parker and AllBirds - have expanded with physical locations for several years, and smaller companies are now experimenting as well, opening free-standing shops, leasing from a retail service or securing short-term spaces in other stores.

Business owners are motivated by multiple factors. Some have always included brick-and-mortar outposts as part of their strategy, adopting what's known as an omnichannel approach, which provides a seamless shopping experience across desktop, mobile and physical platforms.

For others, renting a store has become more attractive because the cost of acquiring customers through social media advertising "has become prohibitive," said Michael Brown, a partner in the consumer products and retail practice at Kearney, a consulting firm. The tipping point varies, he added, but it "typically occurs where growth has slowed and the cost of acquiring new customers has increased." nytimes.com

Starbucks Workers Unionize in Company's Hometown
Union wins right to represent Starbucks workers in its Seattle hometown
Workers at a Starbucks store in its Seattle hometown voted unanimously to be represented by a union, giving the organizing effort by some company employees their most one-sided victory to date.

The store is a small one, with 13 employees eligible to vote, and only nine had their votes counted. The victory gives the Starbucks Workers United union one of its highest-profile wins in the organizing effort that has been growing rapidly since early December, when the first store in Buffalo, New York, voted in favor of the union.

Before Tuesday, five stores in and near Buffalo, New York, and one in Mesa, Arizona, voted to join the union. One in Buffalo voted no. The union said there are 149 other stores spread across 27 states where workers have signed cards in support of the union requesting an election. cnn.com

Gas and go. Pay later. How some drivers are dealing with higher fuel costs.
Klarna, a buy now, pay later company, is allowing consumers to pay for gas in six installments. Is this a good thing?

Macy's Expands Backstage In 36 Locations Nationwide

Continuing with its DTC pivot, Nike plans stand-alone Jordan stores

Nike sees signs of recovery in China, which could be a good omen for other retailers

New bills propose gas price stimulus payments to Americans

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Front Line Employees Fearful & May Continue Wearing Masks For a While
The masks are coming off, but grocers remain on guard

Many safety measures will remain in place and frontline staff likely won't go maskless

Most mask mandates are coming to end in Ontario this week, but don't expect them to entirely disappear from grocery stores just yet.

March 21, people in most indoor settings in Ontario, including grocery stores, pharmacies and restaurants, will no longer have to wear a mask. Mask mandates in settings such as public transit, hospitals and long-term care homes will lift on April 27. The Ministry of Health has said individual employers may keep mandatory masking policies in place if they so choose to

However, even if masks aren't mandatory, most employees (and some customers) will likely continue to mask up. And grocers aren't about to give up other safety measures put in place during the COVID-19 pandemic.

The Retail Council of Canada recently conducted a survey to get a read on how its members will handle the unwinding of mandatory public health requirements in Ontario. It found that all retailers will support staff if they choose to wear masks even if they're not required to. Many retailers will maintain messaging, such as signs, indicating that customers may continue to wear masks, but they're not required to do so. Many will also continue to provide sanitizers and other health and safety tools, such as Plexiglass shields at cash desks, as a way to continue providing added protection to their employees and customers

In a statement to Canadian Grocer from Walmart Canada, the retailer said the safety of its associates and customers is a top priority. "From time to time, we modify our practices and procedures to ensure they are consistent with current provincial and public health requirements," the statement read. "Walmart Canada will be modifying our mask policy to align with current provincial guidelines. In Ontario as of March 21, the decision to wear a mask is up to the discretion of our associates and customers. We will continue making masks available to our associates, as we strongly recommend that they wear them."

Gary Sands, vice-president of government relations at the Canadian Federation of Independent Grocers (CFIG), believes grocers will do whatever they can to support staff members who choose to continue to wear masks.

'THE GREAT SNAPBACK'

One question is, after two years of wearing masks in retail settings, will they be that easy for people to give up? For the most part yes, according to Steve Joordens, a professor of psychology at the University of Toronto Scarborough. He calls it "the great snapback."

"I don't know how quickly they will snap back. They have to have a relatively close interaction with everybody who comes through their checkout," says Joordens. "So, I wouldn't be surprised that we see them being much more cautious much longer, potentially continuing to wear masks. And I don't think it would be a bad idea for grocery stores to keep the Plexiglass up for a while." canadiangrocer.com

Ontario Drops Mask Mandate
Ontario lifts mask mandates in most public spaces including schools, retail settings
Ontario residents were able to shop, see a movie, and take in a hockey game without wearing a mask for the first time in about a year-and-a-half as the province lifted face-covering mandates for most public spaces Monday.

Select settings such as public transit, health-care facilities, long-term care homes and congregate care settings will keep mask mandates until the end of April, but masks are no longer required in most other public spaces, including restaurants, bars, gyms, retail, cinemas, theatres, sports venues, and meeting and event spaces.

Monday marked "an important milestone" in the fight against COVID-19, Premier Doug Ford wrote on Twitter.

"Ontario's cautious approach throughout the pandemic has allowed us to save countless lives as we emerge with one of the lowest fatality rates in North America," he said later Monday in remarks to a Canadian American Business Council roundtable in Washington, D.C. toronto.ctvnews.ca

Still No Plans for Feds to Lift Restrictions
No end in sight for federal COVID-19 restrictions, health minister tells Commons committee
As provinces across the country lift mask and vaccine mandates, Health Minister Jean-Yves Duclos refused to provide a date or a target for when the federal government would do the same.

Duclos appeared at the Commons health committee Monday and was asked repeatedly by Conservative MPs when mandates would be lifted. MP Michael Barrett asked Duclos why the federal government couldn't lay out a plan for ending mandates when provinces have made that move.

Provincial governments hold jurisdiction over most COVID rules, and they have mostly ended restrictions; lockdowns have been phased out and more recently vaccine or mask requirements have been eliminated or a date has been announced when that would take place. nationalpost.com

Canadians are in favour of hybrid work amid COVID. Can employers force them back?

What you need to know to drive or fly across the Canada-U.S. border as more COVID restrictions get lifted
 

Beverly Hills, CA: 5 suspects target Beverly Hills jewelry store in brazen $5M 'smash and grab' robbery
A brazen "smash-and-grab" robbery is under investigation in Beverly Hills and the thieves took off with roughly $5 million worth of jewelry, the store owner said. The robbery occurred at about 2 p.m. Tuesday at Luxury Jewels of Beverly Hills in the area of South Beverly Drive and Charleville Boulevard, near Reeves Park. The suspects shattered the front windows with sticks or sledgehammers and fled the scene with several items from the store, according to the Beverly Hills Police Department. A video shared by Street People of Beverly Hills showed a group of suspects targeting a jewelry store in the area. The suspects were seen running out of the business, leaving the jewelry store window badly shattered. fox10phoenix.com

Tallahassee, FL: FDACS Office of Agricultural Law Enforcement Arrests Member of Retail Theft Ring
Last week, the Florida Department of Agriculture and Consumer Services (FDACS) Office of Agricultural Law Enforcement (OALE), in cooperation with the Escambia County Sheriff's Office, arrested an individual suspected to be involved with an organized retail theft ring operating in the greater Pensacola area and other states. "As the state's consumer services watchdog, know that our Office of Agricultural Law Enforcement will bring the full force of the law against anyone breaking the law and who targets Florida's consumers and businesses," said Commissioner Nikki Fried. "I am proud of the continued results produced by our investigators, officers, and partners that are helping shut down criminal operations in our state."

Background: FDACS OALE opened an investigation into reports by a national retailer that a retail theft ring had leased heavy equipment, removed the retailer's identifiers from the equipment, and advertised the equipment for sale locally on internet sites.

Results: On March 15, 2022, undercover OALE law enforcement investigators and Escambia Sheriff's deputies met with a suspect in the investigation, later identified as Stephen Graves of Warren, Michigan, to purchase stolen equipment from him for $25,000. During the transaction, investigators located the stolen equipment and arrested Graves. He was booked into the Escambia County Jail on the following charges: Florida Statutes, Grand Theft; Second-Degree Felony; 1 count. , Florida Statutes, Dealing in Stolen Property; First-Degree Felony; 1 count, Florida Statutes. Knowingly possess ID of another without consent; First-Degree Misdemeanor; 1 count. Florida Statutes, Scheme to Defraud; First-Degree Felony; 1 count. Florida Statutes, Possession of Fraudulent ID; Third-Degree Felony; 1 count. Graves' bond was set at $221,000 dollars. fdacs.gov

Update: Grorham, ME: Police suspect weed businesses hit by same New Bedford burglars
The robbery of an estimated $59,000 worth of weed products from a Maine marijuana business in October is just one of a string of weed-related burglaries in New England that police suspect are being organized by the same group. The group cut through the wall of a warehouse in Gorham and ran away with nearly 30 pounds of marijuana and 500 THC vaping cartridges, The Portland Press Herald reported Monday. wbur.org

Beaumont, TX: Sheriff's deputies searching for suspect accused of stealing 3 welding machines; total value over $60,000

Murfreesboro, TN: Police investigating $1,000 theft from Hollister in Avenue Shopping center

Concord, NH: Woman charged with Felony in Best Buy theft