ORC's Perfect Storm
NRF: Meeting the challenge of organized retail crime

The retail industry is responding with innovation and collaboration

NRF surveys show that organized retail theft has been a growing problem over the past five years. The brazen, targeted and coordinated activity occurs in communities across the United States.

How did we get here?

Several states have worked to keep non-violent criminals, or those with minor misdemeanor offenses, out of the U.S. criminal justice system. Diversion programs and other job and economic development programs encourage these individuals to become productive members of society.

States have also changed laws regarding the amount of bail assessed to minor offenses, increased felony theft thresholds and worked to remove non-violent offenders from the prison system in the hopes they do not become "career criminals" or fall into a life of more violent crime. The result is that criminals can recruit people to steal inexpensive items in great quantities with no fear of retribution or prosecution.

COVID-19's impact

Unfortunately, pandemic-era retail innovations also attracted enterprising criminals looking to exploit gaps in security and take advantage of opportunities to quickly resell merchandise online, on street corners, in black markets and even back to the retail supply chains and stores they stole from. A perfect storm for organized retail crime emerged - and the results of that storm are being captured on mobile devices and shared via social media and news stories across the country.

Solutions

The costs for security budgets for retailers have grown significantly in recent years - partly due to these retail crimes. Retailers continue to revisit their policies and shift strategies to fight and prevent ORC-related incidents. NRF supports their efforts through advocacy and opportunities to convene the retail industry's leading professionals in loss prevention, asset protection and cybersecurity. nrf.com

Walgreens Crime-Fighting Partnership with ALTO
Walgreens expands partnership with Alto US to reduce crime

Walgreens is focusing on crime prevention as it looks to reduce theft in its stores.

The pharmacy retailer said it is expanding its effort to address theft and organized retail crime across more than 2,200 stores nationwide in partnership with Alto US, a provider of loss prevention and tech-enabled security services. The Alto solution has been used across approximately 500 Walgreens stores since 2019.

In the stores where Walgreens has partnered with Alto, theft has been cut by nearly 30%, according to Todd Lyle, VP of asset protection solutions at Walgreens.

The solution puts Alto's "customer success specialists" in Walgreens stores to foster collaboration between team members, law enforcement, prosecutors and community members. The effort is not only aimed at preventing crime, but also helping to identify and assist in the prosecution of crime suspects.

"Retail crime is one of the top challenges facing retailers today," said Lyle. "Alto shares our commitment to provide a safe environment for our patients, customers, and team members. Our expanded partnership with Alto compliments our asset protection and operations teams while directly supporting 2,250 stores and communities we are honored to serve."

Walgreens noted that retail crime has evolved beyond shoplifting and petty theft to the sale of stolen and counterfeit goods online, with unregulated, online marketplaces and third-party sellers giving criminals additional means to sell stolen and legitimate goods. On Walgreens' earnings call in January, CFO James Kehoe said that organized crime has helped to increase shrink 40% to 50% "over the last two years."

The company is advocating for the passing of the Integrity, Notification, and Fairness in Online Retail Marketplaces (INFORM) for Consumers Act, which would require online marketplaces to collect and verify third-party sellers' government ID, tax ID, bank account information and contact information, and require high-volume sellers to disclose that contact information to consumers. chainstoreage.com

More States Take Action Amid ORC Surge
Ohio fights retail theft by regulating sales on on-line marketplaces like Facebook

Ohio became the third state - after Arkansas and Colorado - to regulate sales on such sites such as Amazon, Ebay and Facebook Marketplace.

States are doing something that Congress has yet to accomplish - make it harder for criminals to sell stolen items online. On Wednesday, Ohio became the third state - after Arkansas and Colorado - to regulate sales on such sites such as Amazon, Ebay and Facebook Marketplace, according to the Retail Industry Leaders Association.

The new laws require "high-volume" sellers, people who sell at least $5,000 worth of items within two years, to share their banking and identification information with sites in order to keep professional thieves from making a fast dollar.

Ohio's new law comes nearly four months after NBC News embedded with local police in Perrysburg Township, south of Toledo, as undercover detectives busted organized theft rings who hawk stolen new-in-box power tools on Facebook Marketplace.

Both chambers of Ohio's legislature passed Ghanbari's bill unanimously in March, and the governor signed it on Wednesday. It becomes effective July 6.

A spokesperson for Amazon, wouldn't comment on Ohio's new law and said the company still supports the House version of the INFORM ACT. "It would prevent an unworkable patchwork of state-level regulations," the spokesperson said.

Illinois, Michigan, New York and several other states are now considering laws similar to what Arkansas, Colorado and Ohio have passed.

Meanwhile, Congress has not yet finalized its version, the INFORM Consumers Act, which has both House and Senate drafts. Tech giants such as Amazon and Ebay support the House version, passed in February, which would require sellers who earn more than $20,000 in online sales to disclose their banking information. nbcnews.com

   RELATED: Ghanbari's bill to combat organized retail crime signed into law

Theft is Crushing NYC Businesses
Op-Ed: New York City's retail theft spree, seen up close
Small businesses across all five boroughs are being pummeled by retail theft, and it's putting us, as well as our employees and customers, in considerable danger. We need to address this spike in crime before more New York businesses are forced to close.

The numbers tell part of the story. The NYPD reports that grand larceny is up 56% year to date across the city. Burglary is up 30.8%. Petty larceny, 38%.

However, New Yorkers must also understand what this feels like from the perspective of someone who operates a small business. I opened the doors of my first boutique in 1989. Working in retail for three decades, theft has become something that I'm unfortunately all too familiar with. However, the times have certainly changed. Retail theft has become more brazen, violent and organized.

Like many other retailers across the city, I am grappling with unpaid rent and having to hire additional staff just to combat the crime. For a small business owner such as myself, these prices are debilitating. Although my business may be better off than others, hiring security guards is still off the table.

Businesses across the city and of all different industries are being targeted. According to the NYPD, we haven't seen a crime wave like this since 1995. Just from January through September, there were more than 26,000 complaints for shoplifting - 6,000 more than the previous year. No wonder businesses are being forced to keep their products under lock and key, something that Al Sharpton can attest to firsthand.

In Washington, Congress is considering the INFORM Consumers Act. It aims to curb retail theft by requiring e-commerce platforms to vet their third-party sellers and prevent thieves from selling stolen products online. The criminals who rob my stores are no longer turning only to the streets to sell my clothing - they're likely ending up on sites like Amazon and Facebook Marketplace.

And right here in New York State, lawmakers are considering legislation that would establish a retail crime task force. To stop these criminals, law enforcement officials and retailers must work hand in hand. I hope that Albany sees the merits of this measure and passes it this year. nydailynews.com

Cracking Down on 'Ghost Guns'
Biden announces measures to crack down on 'ghost guns'

The White House said there had been a tenfold increase in reports of 'unserialized, privately made firearms' since 2016

Joe Biden has announced an attempt to crack down on "ghost guns", kits which can be bought without a background check, from which a working gun can quickly be made, and which have been used in an escalating number of shootings.

In a release, the White House said 20,000 "unserialized, privately made firearms" were reported to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in 2021, a tenfold increase on 2016.

Ghost guns are an increasing problem for US law enforcement. The critical component in building an untraceable gun is the lower receiver, a part typically made of metal or polymer. An unfinished receiver - sometimes referred to as an "80% receiver" - can be legally bought online with no serial numbers or other markings and no license required.

On Monday, the administration also released an executive action to regulate "split receiver" firearms with serial numbers and background checks and to require gun sellers to maintain sales records more than 20 years old. theguardian.com

NYC Subway Station Attack - The City's Violence Epidemic Continues
At least 16 injured in Brooklyn subway shooting, undetonated devices found
At least 16 people were injured, including eight who were shot, when a suspect set off a smoke grenade and unleashed gunfire on a Brooklyn subway train during Tuesday morning rush hour, the NYPD and law enforcement sources told The Post.

The gunman - possibly disguised as an MTA construction worker and wearing a gas mask - launched his bloody assault around 8:30 a.m. on a Manhattan-bound N train at the 36th Street station in Sunset Park, where authorities later discovered several undetonated devices, FDNY and police said.

The suspect is believed to have set off the smoke grenade moments before firing off a barrage of bullets, police sources told The Post. Cops and sources said at least five people were shot in the third car of the train and others were injured by smoke inhalation. A pregnant woman was among those hospitalized, sources said. nypost.com

In Case You Missed it: Lawmakers pass bill to combat the rise in ORC in Illinois
The legislation closes gaps in current Illinois law that criminals exploit and provides law enforcement with more tools to address ORC. Reported in the D&D Daily's ORC column here.

Keeping Your Safety Program Up to Date
How Effective Is Your Workplace Safety Program?

Learn how to transform your safety culture from contentment to involvement.

While it is essential to have a safety program, it's critical to transform culture from contentment to involvement. Several factors influence the need for manufacturing organizations to incorporate a safety program within their facilities. Regulations are viewed as primary by many individuals with a mindset of contentment. Individuals that exhibit an involvement mindset understand the impact safety has on the well-being of the workforce.

Requirement: It's The Law

Workforce safety is mandatory within all organizations. In 1970 the U.S. Congress created the Occupational Safety and Health Administration (OSHA). OSHA is responsible for making certain that safe and healthy working conditions exist in all industries. Accomplishment is achieved by setting standards and ensuring compliance. Government regulations guarantee organizations continue to focus on the reduction and elimination of workplace injuries.

Financial Impact

Another primary factor driving organizations to continue to seek a reduction in injuries is cost. A safety incident incurs a cost of medical care as well as in productivity and the mental health of individuals. Each incident generates a direct financial impact on an organization. After seeing a colleague's injury in the workplace, the mental state of employees can last throughout their careers and contribute indirectly to significant cost implications to the organization.

Consistent From Year to Year - Characterization of Workplace Injuries - Severity of Risk - Workplace Structure - Employee Education - Shifting to Involvement ehstoday.com

Retailers Make List of 2022's Best Companies
Wegmans Is Among This Year's 100 Best Companies to Work For
Fortune is marking the 25th anniversary of its "100 Best Companies to Work For" list, and Wegmans Food Markets Inc., which has been included each year since its inception, has taken the No. 3 spot for 2022.

The list is compiled based on surveys from more than 4.5 million U.S. employees. Topics covered included trust, respect, fairness and camaraderie, and the ranking took into account experiences of employees across all demographics.

Wegmans ranked as a Best Workplace for Working Parents, Millennials and Women in 2021 and topped the list of Best Workplaces in Retail.

Other retailers included on this year's Best Companies to Work For list are Target Corp. at No. 12, Publix Super Markets at No. 92 and Nugget Market Inc. at No. 95. Publix has also been included on the list each year for the past 25 years. progressivegrocer.com

Kmart's Slow, Steady Decline
Once a retail giant, Kmart down to three U.S. stores after NJ closing
Once the Kmart in Avenel, New Jersey shutters, the number of Kmart stores in the U.S. - once well over 2,000 - will be down to three last holdouts, according to multiple reports, in a retail world now dominated by Walmart, Target and Amazon.

Kmart's decline has been slow but steady, brought about by years of falling sales, changes in shopping habits and the looming shadow of Walmart, which coincidentally began its life within months of Kmart's founding in 1962.

Struggling to compete with Walmart's low prices and Target's trendier offerings, Kmart filed for Chapter 11 bankruptcy protection in early 2002 - becoming the largest U.S. retailer to take that step - and announced it would close more than 250 stores.

Kmarts continue to operate in Westwood, New Jersey; Bridgehampton, on New York's Long Island, and Miami. fox10phoenix.com

Retail Rations
Stores Ration Sales Of Baby Formula With Nearly 30% Of Popular Brands Sold Out
A baby formula shortage in many parts of the U.S. is forcing retailers to ration their supplies. Walgreens is limiting shoppers to three infant and toddler formula products per transaction.

A recent review of supplies at 11,000 stores indicates that nearly 30-percent of popular baby formula brands may be sold out. Cities like San Antonio and Minneapolis are reporting out of stock rates for certain formulas even higher than that, well above 50-percent.

Part of the problem stems from an Abbott Nutrition recall in mid-February for select lots of Similac and other formulas made in Sturgis, Michigan. Manufacturers are ramping up production to make up the difference, but admit it may take weeks for them to catch up. erienewsnow.com

Rising gas prices push inflation to 40+ year high
Inflation in March rose 8.5 percent, the fastest pace since 1981. Gasoline prices, which jumped 18.3 percent in March, were the prime culprit. Fuel prices have risen since Russia launched its unprovoked attack on neighboring Ukraine. usatoday.com

FTC sues Walmart after claiming that it deceptively advertised some of its products

Vitamin Shoppe owner makes bid for Kohl's

Lowe's Chief Financial Officer Dave Denton to exit May 2

(Update) Man Faces 25 Years in Prison for Running $20 Million Retail Crime Ring Across Multiple States
An Illinois man was convicted at trial of running a retail crime ring and now faces up to 25 years in prison. Artur Gilowski, 48, was found guilty of conspiracy to commit interstate transportation of stolen property and conspiracy to commit mail fraud. According to evidence presented at trial, he enlisted thieves who stole tens of thousands of products - valued at over $20 million - from retail stores across the country. The thieves then shipped the pilfered goods to Gilowski, who sold them on various ecommerce platforms, generating more than $11 million in profits.

The thieves registered under false names and used "booster skirts" (garments with concealment pouches for stolen goods) as well as electronic transmitters designed to disrupt retailers' anti-theft and loss-prevention measures. Gilowski received more than a million dollars in cash from his crime ring - including $97,000 that was found in the center console of his truck - which led one of his coconspirators to testify at trial that Gilowski "treated money like trash." Five of his co-conspirators pleaded guilty prior to trial. Gilowski is set for sentencing on August 2. invisionmag.com

Riverside, CA: Thousands of Dollars in Merchandise and Owner's Kobe Memorabilia Stolen From Thrift Store
Two men broke into Abbins Thrift Store in Riverside twice last Thursday, making off thousands of dollars worth of merchandise intended for low-income individuals and the owner's personal collection of Kobe Bryant memorabilia. Their crimes caught on security footage, the men first broke in around 2:30 a.m. and stole high end shoes and other items, according to owner Alex Villarreal. "They ripped off about 30 jerseys that we had -- some that were autographed," he said. They returned a few hours later in the daylight, filling trash bags with as many items as they could. Villarreal says one of the thieves even wore a pair of shoes that they stole in the first break-in. The pair made off with around $8,000 worth of goods and Villarreal says his biggest loss is his Mamba, or Kobe Bryant, memorabilia. A huge Bryant fan himself, Villarreal spent years accumulating expensive jerseys which he would display in the store. nbclosangeles.com

Arnold, MO: Police seek man, woman for allegedly stealing 10 laptops from Target
Authorities are trying to find a 34-year-old St. Louis man and a 28-year-old St. Louis woman who allegedly smashed glass display cases and stole laptop computers from area Target stores. The pair allegedly stole 10 laptop computers from the Arnold Target store, Arnold Police reported. At about 6:45 p.m. March 27, employees at the Target in Arnold told police they heard what sounded like glass breaking, and then they saw a man and woman take nine HP laptop computers and one Acer laptop computer from the case. The two ran out of the store with the computers and drove away in a black Cadillac SUV that didn't have license plates, the report said. The computers were worth a combined $4,569.90, according to the report. Investigators found a screwdriver near the broken display case, Arnold Police reported. On March 30, Target's Regional Loss Prevention officer informed Arnold Police that the man and woman had been identified by St. Louis County Police following similar incidents at stores in St. Louis County, Lt. Jason Valentine said. However, as of April 1, no computers had been recovered, and the man and woman had not been located or arrested, he said. myleaderpaper.com

Lincoln, NE: Cell Phones, Smart Watches Taken In T-Mobile Burglary
An alarm sent Lincoln Police to the T-Mobile Store at 2820 Pine Lake Road around 2:30 a.m. Sunday, April 10th. Officers arrived to find the front glass door shattered and a large rock was located nearby. Officers then saw several drawers and display cases had been rummaged through. An early inventory shows several cell phones and smart watches were taken. The estimated loss is $6.720. Damage is estimated at $200. klin.com

Gig Harbor, WA: Police seeks 3 theft suspects accused of stealing $6,000 in merchandise

Murfreesboro, TN: Police want help identifying subject captured on camera in attempted shoplifting of a push-mower and chainsaw case

Midland, TX: Man accused of stealing cameras from Best Buy