Retailers Rely on Private Investigators & Tech to Bust ORC Rings
Private investigators & emerging tech helping crack down on retail crime
California Highway Patrol's Organized Retail Crime Taskforce has recovered more than $41 million worth of stolen goods since the program launched in 2019.

The task force is just one of many that have been launched across the country in the last few months as part of an aggressive crackdown on organized retail crime. The issue has been splashed across social media through videos of flash-mob robberies and multi-million-dollar raids on stolen goods.

One recent investigation that allegedly follows this organizational structure includes a Los Angeles brick-and-mortar cosmetics business called The Makeup Store. The owner allegedly paid young women to steal cosmetics from Ulta Beauty, CVS, Sephora, Rite Aid, Nordstrom and the 99 Cents Only Store. These items were then allegedly resold in The Makeup Store and to other retailers through an online wholesale business called Yanez Liquidators.

On December 19, the CHP served an arrest warrant for the owner, Brenda Yanez, at The Makeup Store. More than $1 million worth of cosmetics and associated products were recovered, according to the CHP.  Certainly flagrant in their dealings, alleged multi-brand fencing operations such as this beg the question of who is responsible, when it comes to forming cases against them.

While the CHP declined to share which brands and retailers hired the private investigators - also referred to as "brand investigators" - that assisted the CHP with its investigation into The Makeup Store and Yanez Liquidators, a representative shared that "loss prevention investigators from various retailers were on-scene to assist in identifying the stolen merchandise" during the December raid.

It's just one case in a slew of new investigations that put beauty- and fashion-focused fencing operations at the heart of this ongoing issue.

"We often work with investigators from brands as our partners," CHP Officer Elliot told Glossy. "One of the roles of the Organized Retail Crime Task Force is to provide law enforcement's logistical [support, including] resources, personnel and equipment to brand investigators]. ... Most of the time, we get tips or insights from either the stores or these brand investigators."

So far, the program's been successful for California, which launched it in 2019. "As of the end of February, we've had over 2,400 investigations and over 2,400 arrests [of] organized retail crimes from our task force," CHP Officer Elliott told Glossy. "We've recovered over 763,000 assets with a [total] value of over $41 million."

AI-powered technology can also be used to detect online chatter around various crimes before they happen, helping loss prevention teams prepare for organized thefts or violence in stores.  glossy.co


Body Cams - Receipt Scanners - Auror Retail Crime Intel Platform
Global retailers testing new ways to fight theft

Battling shrink and theft across the globe

Retailers are trying numerous strategies - from technology to teamwork - to minimize losses.

Retailers around the world are identifying self-checkout as a culprit for shrink while simultaneously dealing with a rise in aggressive shoplifting behaviors. From new camera systems to gated exits to collaboration with competitors, retailers are working overtime to curate a streamlined shopping experience as well as a safe in-store environment.

Smile, you're on camera

What will Lidl's Great Britain employees and police soon have in common? Both will wear body-worn cameras. Lidl GB announced this past November it was rolling out the technology as an increased security measure and claimed it was the first supermarket to make this equipment standard chainwide.

Loblaws lays down the law

The Canadian grocery chain last month began piloting a new security measure that requires customers to scan their receipts before exiting the store to prove that they have paid for all their items, as reported by CityNews Vancouver.

Woolworths deploys anti-theft software

Woolworths NZ, a New Zealand grocery company and one of the country's largest retailers, partnered with loss prevention company Auror in 2020 to help with increasing incidents of conflict and aggression in stores as the grocer saw a 600% increase in aggressive events.

Auror's Retail Crime Intelligence Platform works alongside stores' security teams and law enforcement and shares intel in real-time that zeroes in on suspected thieves to help minimize crime.

For Woolworths, the platform enabled it to reduce shrink, stop repeat offenders, spot organized retail crime groups, improve reporting productivity and allow for greater involvement from store teams. "This resulted in 60% of high-profile offenders who stopped offending in stores and reducing loss by 20%," the report added.

Japan's collaborative effort: retaildive.com

  Read Auror's US Retail Crime Insights Report in today's Vendor Spotlight column below


CA's Version of the INFORM Act Could 'Undermine' Efforts to Fight Retail Crime
California needs to put small businesses first when dealing with organized theft
Despite a federally preemptive law that went into effect last year to crack down on organized retail theft, California is now working to introduce its own version in a way that could harm the small business community this state has worked so hard to support.

The federal INFORM Consumers Act, which went into effect June of 2023, requires online marketplaces to "verify and share information on third-party sellers that handle a high volume of transactions on their platforms in an effort to deter bad actors from selling stolen or harmful goods." Platforms that fail to comply with the INFORM Act's compliance rules could subsequently face tens of thousands of dollars in fines if they violate the law's rules. The key here is that platforms are held to a strict standard to deter illegal activities. Most importantly, legitimate businesses are not negatively impacted by INFORM or its standards.

However, this could change for California's online sellers in the near future should lawmakers have their way. By introducing Senate Bill 1144, authored by Sen. Nancy Skinner, D-Berkeley, California is replicating something that is already the law of the land. Doing so is redundant; this bill is unnecessary, contradictory, and may actually undermine state law enforcement's efforts to stop retail crime.

SB 1144 opens sellers up to a whole host of confusion. California's bill introduces a new licensing requirement for those who sell online, with fees and additional verification requirements to go with it. The bill's language is also overly broad, meaning that any law enforcement broadly interpreting it could charge any sellers who they find even remotely suspicious. This is likely to encourage anti-competitive behavior and leave many legitimate sellers questioning if it's even worth opening an online store. Worse, the additional regulations will be an added burden on our already overwhelmed law enforcement who are already struggling to keep up with combating retail theft.

Real small businesses that have already worked to ensure they comply with the federal INFORM Consumers Act last summer will be left in limbo. What set of guidelines are they supposed to follow? How are they supposed to meet two sets of contradicting criteria? It's a logistical and bookkeeping nightmare.

We can all agree that retail crime and the resale of stolen goods is a problem, but, with federally preemptive solutions already in place, California's SB 1144 is essentially a fool's errand that could result in some pretty detrimental consequences for our virtual Main Street businesses. Our state's small businesses are doing just fine, this would be a step in the wrong direction. ocregister.com


Critics Blast NY's Retail Crime Plan for Lacking Harsher Penalties 
NY Senator blasts lack of harsher penalties, $45M plan to address retail crime
In his weekly column State Sen. Tom O'Mara, who represents the Southern Tier and portion of the Finger Lakes, sounded off on the plight of retail crime in New York.

In an alarming incident that highlights the growing problem in New York, Chemung County Sheriff's Investigator Mike Theetge was critically injured. The 35-year-old officer was struck by a getaway vehicle while pursuing a suspect in a retail theft operation at a Target store in Big Flats, near State Sen. Tom O'Mara's home, on the evening of Friday, March 30.

Sen. O'Mara voiced his concern over the increasing trend of retail theft not only in urban areas but also in rural regions like the Southern Tier.

This growing issue, attributed to lenient policies on crime and punishment, has made retail workers fear for their safety, with a staggering 80 percent concerned about potential active shooter situations. O'Mara criticized the reluctance of Albany Democrats to strengthen criminal penalties, a sentiment that counters the stance of Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins, who believe harsher penalties do not deter crime.

The situation has sparked a broader debate on how to effectively combat retail theft and other crimes, with Governor Kathy Hochul proposing a $45-million plan to address the issue, including establishing a state-level task force and increasing funding for local law enforcement.

However, without the support for increased criminal penalties, many question the efficacy of these measures. The incident and the response from state officials underscore the complex challenges New York faces in curbing retail theft and ensuring public safety. fingerlakes1.com


Kroger's Anti-Theft & Self-Checkout Policies Face Backlash
'Insanity,' says Kroger shopper as he blasts chain's two-pronged anti-theft approach - changing checkout model is answer
Kroger shoppers are getting fed up with the grocery giant's anti-theft measures, saying the store should completely change the way they check out shoppers.

One customer recently took to social media to express his frustration over the security policies, calling it "insanity" to continue shopping at Kroger. "Dear #Kroger, my cart slams stop at exit," the shopper claimed.

He went on to say that a security employee at the Kroger location asked for his receipt, then looked at it and the items in his cart. After doing so, the shopper said the security worker then was able to let him exit the store. "Goes to get device that unlocks cart, allows me to exit," the shopper wrote.

The customer went on to claim that if Kroger "paid customers to check people out" instead of having shoppers use self-checkout operations, the store might not have to use additional anti-theft measures.

Another shopper claimed the additional security measures sound like a "nightmare."  "I liked self-checkout at first because I hate talking to people. It was a faster option," they said.

"But my wife says our Kroger basically has one cashier and all self-checkout, and then they check receipts at the door. This sounds like a NIGHTMARE."  the-sun.com

3,200+ NYPD Settlements Worth $83M
NYC paid $83 million in claims against the NYPD in under-the-radar settlements
McBride's case is one of 3,219 claims against the NYPD that were settled by Lander's office between Jan. 1, 2022, and March 11, 2024, prior to a lawsuit being filed. The Daily News obtained a database of the settlements.

The total amount of $82.7 million in under-the-radar claims in that period included $9.2 million for settlements of $10,000 or less, The News analysis shows. That's in addition to the $249 million paid out to resolve NYPD lawsuits in 2022 and 2023. nydailynews.com


Real-time crime center opened in DC on Monday to combat crime

Violent crime is down in D.C. What changed?
 

Utilizing Biometrics Can Mitigate Shrink & Reduce Fraud
But like any technology, striking a balance is key

Facial recognition: Balancing security and privacy in the retail sector

Facial recognition helps to reduce the risk of fraudulent activities, but it also poses some security and privacy concerns.

Facial recognition software is one of the latest biometric identifiers that companies are relying upon to streamline business operations. While facial recognition is being utilized to fight shoplifting threats, it also poses a significant security and privacy threat.

Loss of product, other than sales, in the retail industry is known as shrinkage. Shrinkage can be comprised of theft, accounting errors or broken items. While the average 2023 shrink rates were 1.6%, the largest percentage of shrink rates were between 2% to 2.99%, with 22.6% of polled retailers reporting levels in this range. Overall, theft makes up 65% of a retailer's shrink rate, but can be as high as 70% for some retail subsectors. Also, alarming is the statistic that retailers saw the number of shoplifting incidents involving violence increase by 35%.

Given the fact that retailers strive to provide a safe environment for workers and customers, and employees are often not trained to interfere with violent thefts, utilizing biometric identifiers can be a key way to mitigate theft without endangering employees. wtwco.com


Target Continues to Retool Self-Checkout
Report: Target Adds Camera-Based Tech to Self-Checkout Registers
Target is reportedly adding camera-based systems to its self-checkout registers to deter theft. The new technology detects items on scanners, alerts the shopper if an item is not scanned, and helps the company track the shopper if they fail to scan items even after being notified, Bloomberg reported Monday (April 8), citing internal company documents.

The system has been piloted in some stores and will be rolled out to others this year, according to the report.

The report comes about a month after Target announced that it would limit self-checkout to 10 items or fewer at most of its stores beginning March 17. The retailer also said in a March 14 fact sheet that it would open more staffed checkout lanes.

In addition, Target said it would enable store leaders to determine the hours that self-checkout lanes are open. In some cases, they will limit the use of those lanes the only the busiest shopping hours, according to the fact sheet.

The retailer said at the time that it is making these changes to ensure that self-checkout lanes allow shoppers to complete their purchases quickly. When piloting the 10-item limit at 200 stores last fall, it found that the self-checkout lanes in those stores were twice as fast as those in others. pymnts.com


In-Store Shopping Making a Comeback?
Luxury brands are placing billion-dollar bets on in-store shopping

Luxury brands seek new retail storefronts in a bet that shoppers prefer in-store experiences.

While vacancies in retail real estate have surged since the pandemic, luxury brands from Gucci to Chanel are betting big bucks that their in-store experience will draw in shoppers for the long haul.

Kering, which owns Gucci and Saint Laurent, recently spent $1.4 billion on a building in Milan's Via Montenapoleone, The Wall Street Journal reported. The purchase comes in addition to a $1 billion property acquisition on New York's Fifth Avenue made by the company in January, the outlet reported.

While e-commerce has surged since the pandemic, increasing by $244.2 billion or 43% in 2020 over the previous year according to Census data, and with more and more retail establishments - including Rite Aid and 99 Cent Stores - permanently closing their doors in recent months, luxury brands haven't shied away from opening new locations to serve shoppers in person.

Forbes reported in October that luxury storefronts accounted for 38% of new store openings and 40% of retail leasing over the last year, with Dior opening stores in Orlando, Detroit, and Austin, while Alexander McQueen opened new locations in Atlanta, Boston, and Charlotte, North Carolina. businessinsider.com


'Just Walk Out' Tech Getting Yanked from Whole Foods
Whole Foods to pull Amazon's Just Walk Out technology from stores

The specialty grocer, which operates the checkout tech at just two stores, will follow the same path as Amazon Fresh stores in the U.S., a spokesperson confirmed Friday.

Whole Foods Market plans to remove Amazon's Just Walk Out checkout system from the only two stores that offer the technology, a spokesperson confirmed via email Thursday.

The specialty grocer will instead install more self-checkout stations and traditional registers at these locations, but the spokesperson did not say when these changes would happen.

The disclosure comes a few days after Amazon confirmed plans to remove Just Walk Out from its U.S. Amazon Fresh stores as part of its ongoing revamp of that chain. retaildive.com


Frustrated Dollar Tree shoppers threaten to ditch the store after it announces $7 items
Everything at Dollar Tree was a single price for years: $1, then $1.25. That helped it stand out from Dollar General, which has sold merchandise at various price points for years. Now, as Dollar Tree strays from its traditional pricing strategy, customers are considering shopping elsewhere.

Best Buy just laid off a bunch of Geek Squad workers

Jersey Mike's reportedly eyes $8 billion sale

How Should US Retailers Handle Parental and Paid Leave?
 

Senior LP & AP Jobs Market

Director of Risk Mgmt job posted for WKS Restaurant Corp. in Cypress, CA
The Director, Risk Management at WKS Restaurant Group is a key leadership role responsible for overseeing all aspects of risk management within the organization. This includes strategic oversight, insurance program leadership, asset protection and security, food and industrial safety regulations, compliance, claims and litigation management, loss control and prevention strategies, and team leadership and development. indeed.com