Retail Crime 'Changing the Fabric of Society'?
'Stores are afraid,' warns ex Toys "R" Us CEO amid crime surge

The former retail leader explained how people have changed their attitudes to theft

THE former CEO of the renowned chain Toys "R" Us has warned about how retail theft could impact society. Gerald Storch explained how retailers had apparently become afraid of stopping theft and shoplifting.

The former retail leader explained how changing attitudes had impacted the rise in retail crime. Storch said an apparent focus away from this type of theft had impacted stores. He claimed there was a disregard to prosecute in-store crime.

The former CEO said police often did not stop or arrest thieves as "they know that if they arrest someone they're just going to be back on the street." Storch also claimed that these changing attitudes could have a greater impact on people and not just cops or stores.

"I think in the last few years there's been kind of an attitude that we have bigger things to deal with and this isn't that serious a crime, and let's focus on the big crimes, and not on you know petty theft as they might call it," he added.

"But the reality is that the gross misunderstanding of what's going on it's changing the fabric of society."

The former CEO raged about the increased use of glass to cover and lock items in stores. This anti-theft method would require an employee to come over and unlock these doors to retrieve goods for shoppers.

Storch said one impact of this would be rising costs for stores and therefore shoppers. He also explained that increasing rates of theft could lead to some closures.

Despite this, Storch claimed these retailers have been worried about stopping the crime that has affected them. "The stores are afraid to stop people because they're afraid they are going to get sued," he claimed. the-sun.com  foxbusiness.com


The Rise of 'Inconvenience Stores'
The inconvenience store: Why are shops locking up even more merchandise?

You may have noticed a surge in items stowed behind security glass

In an attempt to stop retail theft, big chain stores are locking up more and more of their wares. But customers are not happy about the extended wait times and decreasing ease of scooping up even the cheapest items in a hurry.

How bad is the shoplifting problem?

Some research suggests the shoplifting problem these lockups are combatting is overblown. A nonpartisan research organization called The Council on Criminal Justice tracked shoplifting trends in 24 cities from 2019 to the middle of 2023, and found that rates decreased in more than two-thirds of the cities over that time, said The Los Angeles Times. Exceptions were New York and Los Angeles, which both saw increases in shoplifting, defined as "stealing goods valued at less than $950."

However, in 2022, "nearly 70% of retailers reported a rise in organized retail crime ... contributing to theft and losses of as much as $69 billion a year," said Forbes, citing statistics from the Retail Industry Leaders Association and the Buy Safe America Coalition. So-called retail gangs were performing "coordinated attacks," targeting products they could "steal in bulk and easily resell online, with some groups netting millions in profits."

How are lock-up efforts going?

The most obvious result of lock-up efforts is a loss of business for brick-and-mortar retailers. Many shoppers now prefer the ease of Amazon delivery to waiting around helplessly for an employee to unlock their merchandise. "Retailers aren't clueless," said Forbes. "They know customers hate finding stuff locked up. It typically results in a 15% to 25% reduction in sales."

New products are now being born of the apparent need to stop the rise in theft. Security solutions company InVue has seen sales for its smart locks surge 86% year-to-date, after rising 31% last year, said Forbes. Its customers include Lowe's and Best Buy. Walmart "began testing a new type of locked case this year that can be opened by any employee with a smartphone," Forbes added.  theweek.com


Theft Surge Fueling 'Dramatic Increase' in Anti-Theft & LP Solutions
How point of sale and display solutions can reduce retail theft in 2024

Given the surge in theft, there is now a dramatic increase in requests for anti-theft and loss prevention solutions from retailers.

In the ever-evolving landscape of retail, businesses face an ongoing challenge: theft.

Despite many retailers implementing additional security measures such as extra guards, security barriers, and employee body cams, the issue of stolen goods continues to plague the industry. To overcome this issue, retailers must adopt point of sale and display solutions to help combat loss.

The issue of retail theft has been intensified by the impact of the cost of living crisis, with the Office for National Statistics releasing new data late in 2023 stating that theft had increased by 25% since 2022.

Suppliers and their solutions

While the burden of theft often falls on retailers and the police, retail suppliers have a significant role to play when it comes to preventing theft. One way suppliers can help retailers protect themselves is by developing cutting-edge point-of-sale and product display solutions.

Point of sale and display solutions

Retractable lanyards and anti-theft security tethers offer a straightforward yet highly effective solution for displaying products of all value while minimizing the risk of theft or accidental displacement. Anti-sweep hooks are another solution and are designed to prevent people from sweeping secure products with a strong and secure hold, enabling retailers to showcase products and merchandise in a way that's both visually appealing and organized whilst deterring theft.

Embracing a range of anti-theft solutions

POS and display solutions are just one of many ways retailers can help prevent theft. It is necessary to have a combined approach that makes it a lot more difficult for shoplifters to steal. Introducing intelligent analytics is one way as it can detect unusual behavior, prompting real-time alerts. Other ways include extra security guards, facial recognition systems, and signage displaying the consequences of theft.

Demystifying demand:  retailcustomerexperience.com


'Retail Theft is Happening Everywhere'
'Retail theft is a scourge around the world ... it is concentrated among a few bad actors'

Shopper Mixed Signals, Retail Theft And Department Store Futures

Retail Economic Indicators

Also proof of global trend, local expression, the Australian retail crime reporting network (covering 60% of Australian retailers) found that almost 1 in 10 retail crimes across Australia is violent. Out of 700,000+ crimes reported to the network in the year ending April 2023, 16% including threatening or violent behavior, which is trending slightly higher than the US or New Zealand, but I'm guessing that's not true for the UK (retailers there have also been urging the government to pass new legislation to account for the increase in theft). I talk to people in many countries and every one of them say "retail theft is on the rise in my country" - I'm pretty sure it's happening everywhere, driven by the combination of inflation and labor pressures.

The Australia crime report found that just 10% of individuals cause 61% of all retail crime in Australia, with repeat offenders four times more likely to be threatening or violent. That has a bit if a creep factor to it, that I'm not even sure is legal in the US - companies that offer return fraud protection have to also offer paths for remediation if someone is incorrectly blacklisted, or wants to challenge a blacklisting. So while it's useful to know the concentration that's happening around retail theft, companies have to be careful about pooling their lists to track individual offenders.

The Bottom Line

What did we learn this week in retail? The shopper is still all over the place, no matter what country they shop in. The economy has not cratered and confidence in both a soft landing and rate cuts gets higher by the day, especially as inflation softens. Retail theft is a scourge around the world, but if we can extrapolate Australia's results, it is apparently highly concentrated among a few bad actors - which does lend credence to the NRF's focus on organized retail crime, for example. Retailers get to keep their cookies (for now), but no one is saying that means they should stop planning for a cookieless future.

And department stores are most likely the next on the chopping block after big box stores, having tried and still failing to come up with an alternative strategy to losing all their shoppers to online or directly to the brands.  forbes.com


Summer Consistently Sees More Violent Crime
Times of day, months when violent crime is most rampant
Crime happens year round, but violent crime tends to spike during the summer months.

According to a 2014 report by the U.S. Department of Justice (DOJ), there were seasonal trends found in violent crime that happened over close to two decades, with more people falling victim to violent acts during June, July and August.

Rates of violence that involve weapons and serious injury were up in the summer compared to the winter and spring, according to the DOJ.

Another study on the impact of heat on crime was done in 2019 by the University of Southern California, where it was discovered that, on average, overall crime increased by 2.2% and violent crime rose by 5.7% on days when high temperatures were above 85 degrees Fahrenheit, compared to days below that temperature.

More than one-third of all violent crimes (murder, violent sexual assault, robbery, aggravated assault, simple assault and kidnapping) committed by those under 18 happen between noon and 5 p.m., according to the organization. For adults 18 and older, 30% of all violent crimes occur between 6-11 p.m. foxnews.com


Olympic Village Hit With String of Thefts

Maine's deadliest mass shooting raises questions about police training
 

Internal Missteps or External Pressures?
Are Five Below's Problems Self-Inflicted?
Shares of Five Below crashed recently as the sudden deterioration in sales trends and abrupt exit of its CEO Joel Anderson led some analysts to believe the chain's challenges were related more to internal missteps than external pressures.

In response to the underperformance, Five Below is testing price reductions at about 100 stores and launched a marketing test in late May to help drive conversion and traffic. Self-checkout is being removed to tackle shrink, and cost optimization efforts have been implemented. Five Below's merchants are "definitely looking at new trends, chasing trends, finding new ways to drive footsteps," he added.

In the near term, Five Below's core customers "are clearly prioritizing needs over wants," but improvement is expected as the retailer's offering becomes more "needs-based" in the back half. Anderson said, "Back-to-school is a reason they have to come in our stores. And certainly, holiday, our entire store becomes a need store." retailwire.com
 

Retail's Focus on Customer Satisfaction Continues
Should All Retailers Offer Instant Refunds?
Reshop is changing things up when it comes to the refund process by offering instant refunds, bypassing the traditional waiting period that consumers have come to expect.

Launching this new program with major partners like Alo Yoga, Steve Madden, and Orveon's cosmetic brands, Reshop will give consumers access to their return funds immediately after completing their returns instead of receiving store credit.

Katie Pridham, Reshop's chief commercial officer, summarizes the new refund platform's dual benefits: instant refunds enhance consumer satisfaction and help merchants recover lost revenue through repeat sales. According to the company's research, 90% of shoppers will favor merchants that provide instant refunds, and two-thirds of Americans think "returns are the absolute worst part of shopping."  retailwire.com


DoorDash is delivering for Lowe's, Ulta, and other retailers

Mall of America welcomes 12 new tenants