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The U.S. Crime Surge
The Retail Impact

 

Retail crime is a 'spiraling problem' in Kansas, the state's AG says, as rising drug use leads to a surge in shoplifting in Wichita

• Organized retail crime is rising in Wichita, Kansas, according to a report by CNN.
• Rising drug use in the area is leading to a surge in shoplifting, local crime officials say.
• Items being targeted include Lego sets, jewelry, beauty products, and Tide detergent.

Wichita, Kansas, is becoming a hotbed for retail crime, according to a report by CNN.

Kansas Attorney General Kris Kobach told CNN that it was a "spiraling problem" in the state that left both store employees and the general public "frustrated."

"To see this much retail crime, it's shocking," Captain Casey Slaughter, who leads Wichita Police Department's property crimes bureau, told CNN.

Retail crime is rising across the US. Organized retail crime at retailers was 26.5% higher in 2021 than in the previous year, according to a study by the National Retail Federation.

It's a problem in Wichita, too. Retail theft in the city in 2023 so far is up 35% over the five-year average, Slaughter told CNN.

Slaughter said that thieves were "basically taking anything that can be quickly carried out of the store," and would often sell them on online marketplaces or at small stores afterwards. He said that the most stolen items reported by retailers included expensive clothing and footwear, Lego sets, jewelry, beauty products, sporting goods, power tools, and Tide detergent.

"Property crime is an emerging problem in Wichita," Joe Sullivan, Wichita's police chief, said at a Sedgwick County board of commissioners meeting in April. "I'm very concerned about the sudden rise in burglary and retail theft."

One of the city's Victoria's Secret stores loses around $30,000 a month to theft, the fourth-highest of the retailer's stores in the US, Sullivan said. He added that outdoor leisure retailer Cabela's said that its Wichita store was its worst for loss nationwide.

"There's a small number of people committing the vast majority of this large number of crimes," Sullivan said.

In Derby, a smaller city to the south of Wichita, retail crime is primarily from big box stores, the city's police chief Robert Lee said during an April meeting.

"What we see now is much more organized rings of shoplifters," Lee said. "We see them where they can more easily dispose of the property that they steal quickly: They don't have to go to pawn shops anymore, they just take care of it on social media and sell it that way, but we see them now much more likely to confront store employees, confront the police, and use extraordinary means to facilitate their escape. We see a lot of high-speed pursuits as results of shoplifts."

Local crime officials say that drugs, and in particular fentanyl, a synthetic drug like heroin but 50 times more potent, appear to be driving a lot of the retail crime. Drug-associated deaths by Sedgwick County residents increased by 91% from 2015 to 2020, according to county data, largely due to a sharp rise in opioid-associated deaths.  businessinsider.com

 

The nationwide reckoning over how to respond to open-air drug markets.
It's like trying to close Pandora's box after letting her run free for years.

The root cause of so much of the spike in property crimes in major cities. 

The downward spiral is causing retailers to close stores and sending cities into 'doom loops'.  With tax bases eroding, police forces frozen to act and unable to fill their ranks, homeless populations growing 9% last year with no end in site

Unable to really analyze the depth of the property crime problem

Since 2015, homelessness in Los Angeles has increased by 70% in the county and 80% in the city and spiked again 9% since last year.

LA County is the nation’s most populous, with about 10 million people. More than 1 in 5 of all homeless people in the U.S. live in the county, based on a 2022 federal tally.

Homelessness rose in the U.S. after pandemic aid dried up

Homeless Numbers Rise in U.S. Cities

The number of homeless people counted on streets and in shelters around the U.S. has broadly risen this year, according to a Wall Street Journal review of data from around the nation.

Community Shelter Board, a government-supported organization that reported a 22% homeless increase in the Columbus, Ohio-area.

The Journal received data from 67 of the 100 locales with the highest homeless counts last year, along with many others. Preliminary data show 48 of those 67 reported an increase this year, with combined counts up 9% from the numbers HUD published for those places in 2022 and 13% since 2020. Some places said comparisons to 2020 are better because of counting disruptions during the pandemic.

If this trend holds, the U.S. could notch a sharper climb after several recent years of smaller recorded increases  aol.com

 

Minneapolis Homicides Up 65% & Shootings Doubled Since 2019

A federal consent decree will make policing more difficult and expensive without reducing crime.

There’s no doubt that Minneapolis is in crisis. Police resignations and retirements have shrunk the number of sworn officers by 35% since the unrest of 2020. While the city’s 2023 budget contains funding for 731 officers to protect and serve Minneapolis’s 425,000 residents, the department currently only has 571 officers—496 of whom are assigned to the division that answers 911 calls. And while the post-Floyd upsurge of violence ebbed slightly in 2022, Minneapolis is still a much more dangerous city than it was a few years ago. Last year the number of homicides was 65% higher than in 2019, while reports of gunfire and the number of shooting victims doubled over that period.

The Justice Department announced last week that the Minneapolis Police Department will operate under a federal consent decree.   An investigation sparked by the 2020 killing of George Floyd determined that the city unlawfully discriminates against blacks and Native Americans in its enforcement activities. The terms of federal oversight are yet to be negotiated, but Minneapolis officials should think twice before signing on the dotted line. These agreements typically make effective policing more difficult and expensive without significantly reducing crime. wsj.com

Retail Wire Today: Should Costco Be Going To War Against Card Sharers?

The confirmation comes after posts on social media showed shoppers venting about at Costco employees asking for their ID cards again at the checkout line. Costco reintroduced self-checkout in 2019.

Costco in a media statement said it has always asked for membership cards at regular checkout and  the photo-checking extends the policy to self-checkout. The statement read, “Our membership policy states that our membership cards are not transferable and since expanding our self-service checkout, we’ve noticed that non-member shoppers have been using membership cards that do not belong to them. We don’t feel it’s right that non-members receive the same benefits and pricing as our members.”

Some social media complainers noted that they were making purchases for their elderly parent. Some felt harassed by Costco’s staff asking for their photo ID. Wrote one angry Redditor, “I get WHY they are doing it, but they need better training because these employees are treating people like we’re all there to shoplift.”  retailwire.com

 

Friday: Costco's New Self-Checkout  Security Procedures Backfiring

Sounds Like Costco Has Self-Checkout Shrink Issues
Abrupt Policy Change for Costco - Who pride themselves on never having any shrink issues!

Costco customer says interrogation triggered by new ID policy offended her

Longtime Costco customer Leronda Jackson was offended Wednesday when an employee at the retailer’s Centerville store claimed Jackson’s face didn’t match the one on the back of her membership ID card.

Costco nationwide recently announced a new policy that calls for employees to check store membership ID cards against the person using them, especially at the self-check registers, because nonmembers have been using other people’s cards.

Wednesday evening, Jackson recounted: It all began with a random interrogation at the self-scan registers, Jackson said, and tensions rose from there.

“The young lady just said, ‘I’m going to need to check your card. We’re doing facial recognition. It’s our new policy.’ I said, Yeah, I heard about it.” (Ed. Note: And they actually labeled it as facial recognition)

So, the Englewood woman said she gave the employee her membership card -- complete with the color photo of Jackson on the back.

She said, ‘Well, this is not you. ' "

“And I said, It says Leronda Jackson. That is me. So she said, ‘No, I’m saying this picture is not the person I’m looking at.’ "

“I said, Look, that’s me, That is my card. And then as my voice began to raise, she said, ‘Well, I’m sorry, it’s the lighting in the store and maybe I don’t have good eyes today.’ "

Jackson finished scanning and paying for her items and left. She returned a while later to speak with an assistant manager, who offered an apology. The assistant manager chalked it up to a “training issue,” Jackson said.

Jackson said she also has shared her experience on her Facebook page, which is called “Black Women Who Love Costco.”

“You’d be surprised how many people have had this happen,” Jackson said.

 

The 'E' in Email Stands for Evidence

Email Comments Will Be Used as Evidence

"Email has become to civil law what DNA has become to criminal law: a rich source of indisputable evidence that can change case outcomes on a dime."

Managers typically write hundreds of emails each day, and as a result, email has become an often-casual means of communicating quick thoughts and ideas. The same goes for instant messages and other forms of electronic chatting.

"And it's just this casual informality that makes it all so concerning," Nowak said. Every electronic communication that a manager writes "has the potential of being blown up on a large video screen and placed in front of a jury as evidence of their state of mind at the time they wrote it—a state of mind that may reveal some form of ill intent that they allegedly harbored against a plaintiff/ex-employee based on that individual's age, race, disability or other protected status." 

Never Attempt to Destroy Electronic Evidence

Simply deleting a problematic email may be a mistake for several reasons. First, deleting electronic communication may be ineffective because it often can be recovered after it's deleted.

"Even worse, deliberately or even accidentally destroying evidence relevant to a legal dispute may lead to claims of spoliation of evidence,"

Codifying the Damage Is Dangerous - Descriptive Words Are Not Your Friend - Employ the Attorney-Client Privilege Properly shrm.com

 

‘It Can Be a Bit Polarizing’—Finance Chiefs Weigh Return-to-Office

Worker morale. Productivity. Cutting costs. CFOs explain what they are thinking about with return-to-office policies.

The return-to-office discussion has upended the workplace. 

So far, most U.S. companies—51%—are opting for some kind of hybrid-work arrangement, according to a report covering more than 4,000 companies conducted by hybrid-workplace software company Scoop. The share of people in the office under a so-called structured-hybrid work arrangement, which requires workers in the office a set number of days, increased to 30% in the second quarter of this year, up from 20% in the first quarter, according to Scoop. Fully flexible work arrangements, which are defined as remote working all of the time or letting employees decide if and when they are in, dropped 3 percentage points, to 28%, in the second quarter.  

Many finance chiefs are stuck somewhere in the middle, toeing the company line on issues such as the effect on workers’ morale, productivity and the potential bottom-line impact of unused office space. Yet on a human level, many empathize with workers’ view on the return-to-office question and what’s more, welcome the ability to work from home themselves.  wsj.com

 

NRF: 2023 Top 100 Retailers

NRF’s annual look at the top U.S. retailers based on sales rankings

Following years of unrelenting change, the country’s Top 100 retailers have delivered a surprise: greater consistency than expected. David Marcotte, senior vice president for Kantar, says other than just a few exceptions, “everybody grew, and at more or less the same rate.”

Walmart takes the top spot on this year’s list with $499.65 billion in U.S. retail sales for the year, growth of 7.8%. Amazon.com follows with sales of $232.46 billion, growth of 6.7%. Costco Wholesale, The Kroger Co. and The Home Depot once again round out the top five, although this year the grocer — thanks to the impact of the supply chain and other factors in the supermarket sector — has jumped a spot above the home improvement store.  nrf.com

Rank	Company	2022 U.S. retail sales (billions)
1	Walmart	$499.65
2	Amazon.com	$232.46
3	Costco Wholesale	$164.15
4	The Kroger Co.	$147.62
5	The Home Depot	$145.94
6	Target	$107.59
7	CVS Health Corporation	$106.18
8	Walgreens Boots Alliance	$103.91
9	Lowe's Companies	$89.28
10	Albertsons Companies	$76.15

 

Top 100 Retailers 2023 List

 

The running list of major retail bankruptcies

From Toys R Us to J.C. Penney, many retailers have filed over the past few years. Here’s who has fallen victim since 2017.  retaildive.com

2023 - 9 So Far

Rockport Group files Ch. 11
Christmas Tree Shops files Ch. 11
Bed Bath & Beyond files Ch. 11
David’s Bridal files Ch. 11
Shoe City files Ch. 11
Tuesday Morning Ch. 11
Independent Pet Partners files Ch. 11
Party City files Ch. 11
Forma Brands files Ch. 11

 

Rite Aid could be looking at more store closings

Rite Aid announced during its Q1 earnings call that it closed 25 stores during the opening months of the fiscal year, and more could be on the horizon.  Since late 2021 Rite Aid has shuttered 180 stores. supermarketnews.com

 

Dollar General goes cashierless at one store in North Carolina

Walmart Tests 1,500 sq. ft. tiny stores, 'General Markets', in popular vacation spots.

Christmas Tree Shops to Liquidate All Stores

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	Regional Manager, Loss Prevention (Western Territory) Remote - posted June 28 The Regional Loss Prevention Manager is responsible for the control and reduction of shrinkage at the stores in their Territory. Investigate and resolves all matters that jeopardize or cause a loss to the company's assets. Has ownership for all company related shrinkage programs in their assigned stores.
	Regional Manager, Loss Prevention (Central Territory) Remote - posted June 28 The Regional Loss Prevention Manager is responsible for the control and reduction of shrinkage at the stores in their Territory. Investigate and resolves all matters that jeopardize or cause a loss to the company's assets. Has ownership for all company related shrinkage programs in their assigned stores...
	Regional Director, LP & Safety (Midwest) MN, MO, IL, KS, WI, MI, IN, or WA - posted June 27 We are looking for a Regional Director of Loss Prevention to join us in MN, MO, IL, KS, WI, MI, IN, or WA. You will develop, execute, and maintain shrink and shrink compliance initiatives. You will also conduct internal and external field investigations, loss control auditing, store safety programs, and compliance programs and audits...