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NRF Reports Retail Shrink Nearly a $100B Problem  

The 2022 National Retail Security Survey, released today by the NRF, shows violence is a growing threat to retailers

WASHINGTON, September 14, 2022 - Retail shrink, when taken as a percentage of total retail sales in 2021, accounted for $94.5 billion in losses last year, up from $90.8 billion in 2020, according to the 2022 National Retail Security Survey released today by the National Retail Federation. Organized retail crime (ORC), a critical component of that shrink, is a growing challenge both for retailers and the industry at large.

"The factors contributing to retail shrink have multiplied in recent years, and ORC is a burgeoning threat within the retail industry," NRF Vice President for Research Development and Industry Analysis Mark Mathews said. "These highly sophisticated criminal rings jeopardize employee and customer safety and disrupt store operations. Retailers are bolstering security efforts to counteract these increasingly dangerous and aggressive criminal activities."


The survey found that the average shrink rate in 2021 was 1.44%, a slight decrease from the last two years but comparable to the five-year average of 1.5%. The majority of retailers report that in-store, ecommerce and omnichannel fraud have risen. Violence is a growing area of concern and retailers are prioritizing addressing guest-on-associate violence, external theft and ORC. 

Increase in Risk and Threat Priorities over
the Past Five Years

The COVID-19 pandemic created more challenges for retailers. A large majority (87.3%) of respondents said the pandemic resulted in an increase in overall risk for their organization. Retailers specifically cited an increase in violence (89.3%), shoplifting (73.2%), ORC and employee theft (tied at 71.4%) as a result of the pandemic.

Retailers reported a 26.5% increase in ORC, on average. Even more alarming, the vast majority (81.2%) said the violence and aggression associated with ORC increased in the past year.

The 2022 National Retail Security Survey was conducted online among senior loss prevention and security executives in the retail industry. The study was done in partnership with the Loss Prevention Research Council and is sponsored by Appriss Retail. Click here to view the full report.

Click here to read the D&D Daily's Breaking News Alert on the new report
 

ADT says new Virtual Assistance program boosting efficiency, savings

The program is aimed at cutting back in-person service calls

Many security companies at this week's GSX show who serve residential customers likely have dealt with increasing demand for services and the higher costs of providing it. But ADT has rolled out a virtually based service program for residential customers that the company says pays big dividends in terms of cost savings, efficiency and customer satisfaction.

ADT's Program

ADT launched Virtual Assistance, a program billed to provide increased flexibility for appointment scheduling and faster resolution of many service demands without having to send a technician to the home every time.

A 'perfect storm'

Jesse Coomber, ADT's vice president of operations, says a variety of factors led to ADT's decision to create the virtual service program, including the 3G sunset, the COVID-19 pandemic and the resulting snapback of demand for home-security services. Coomber says trying to send a technician to every service call was becoming inefficient and costly. securityinfowatch.com

GSX 2022 Spotlight: Genetec Inc. Security Center previews a significant new element to its software management suite, as cloud offerings expand In this interview at GSX 2022, Kyle Hurt, Senior Director of Sales for Genetec in the United States, discusses an array of new technologies that range from advanced software data for Security Centers to some innovative access control solutions. Click here to learn more

Retail Violence Remains a Global Challenge
The Global Economic and Retail Headwinds in Seven Formidable Charts

By Tony D'Onofrio, Global Retail Influencer & Prosegur's CEO & Managing Director, Global Retail Business Unit

The world faces multiple challenges for the balance of 2022, into 2023, and it may even extend into 2024. Multiple negative forces are combining to slow the dramatic growth of the pre-pandemic decade.

A recent Wall Street Journal article, 'COVID-19 is Still Killing Hundreds of Americans Daily', reminded us that the disease is on pace to remain the third-leading cause of death in 2022. The war in Ukraine continues to place a harsh toll on people's lives and feeds global economic uncertainty, especially with energy prices.

The retail industry recovered quickly from COVID-19, but Inflation is now placing additional burdens on growth. Supply chains are in some cases doing better, but shortages and long waits on basic products continue.

Adding to my popular webinar series, 'The Disruptive Future of Retail', this article expands on the global economic and retail headwinds section included in the September 2022 edition. The overall presentation examined the challenges we are facing, how the retail industry is responding, and where technology will take us next.

Retail Violence Needs to be Addressed

2021 and the first quarter of 2022 saw increased violence and fatalities in the retail industry. Alarmingly, USA retail customer fatalities were up 24% in 2021 and are up 13% in Q1/2022, according to the D&D Daily's latest reporting. Store associates' deaths were up 24% in 2021, and are up 32% in Q1/2022.

USA is not alone in seeing increased retail violence. Some 106 of UK's leading voices wrote to Police and Crime Commissioners in England and Wales about their concerns with increased retail violence. Similar trends are emerging in Canada.

Read Tony D'Onofrio's full article here

Big Box Stores 'Overwhelmed with Theft & Crime'
Portland area Target employee shares frustrations, dangers of working in crime-ridden store
For the past five months, FOX 12 has sought to interview leaders of some big box stores overwhelmed with theft and crime in the Portland area, but one after one, they all turned down interviews.

The corporations also declined to let their loss-prevention mangers address burgeoning shoplifting and organized retail crime, something that employees and retail associations consider to be an overwhelming problem.

But FOX 12 met a woman who works at a local Target who was willing to share her experience on the job. She offered valuable insight at what big-box employees are up against and why it's so hard to stop thieves.

"We will have people who will fill up backpacks, suitcases, wagons, and just walk out the door," the employee said. "Some guests will do a smash and grab. They take a hammer, or sledgehammer of some sort and smash the glass doors that are protecting the electronics and grab what they can and walk out."

Since the pandemic, the woman said theft has exploded and becomes particularly bad during closing time.

The woman told FOX 12 she understands Target's safety policy, but she says so do thieves who in turn, feel invincible. FOX 12 reached out to Target for comment on this story. Spokesman Brian Harper-Tibaldo sent along the following statement:

Safety is Target's highest priority, and in response to elevated incidents of theft in the Portland area, we've taken a number of steps to ensure the safety of our team and guests. This includes hiring more security team members, installing more security cameras and using a third party to provide additional security in select stores. We invest time and resources in our store leaders and security team members so they can protect themselves and de-escalate potential safety issues. We also work directly with law enforcement on an ongoing basis to address organized retail crime."

Target's Portland store off of NE Halsey Street is one of the retailers top loss locations in the country. kptv.com

The Great Debate: How to Deter Shoplifters
Aurora councilmembers clash over mandatory jail sentences to deter retail theft
Some on Aurora City Council want mandatory jail sentences of at least three days for those who steal $300 or more in retail goods - but a proposal to do just that drew criticism from progressive council members who argue that jail time won't deter people from committing more crimes.

The proposal, which Councilmember Danielle Jurinsky introduced at Monday's meeting, received initial approval from the city council. Councilmembers Alison Coombs, Juan Marcano and Ruben Medina voted against the bill. Councilmember Crystal Murillo was absent. The ordinance will return for a second reading before it can receive final approval.

Jurinsky brought the proposal to the table in response to an increase in retail theft in the city's Havana Street corridor. That area saw more than 36 thefts in 2017; 34 in 2018; 36 in 2019; 30 in 2020; 39 last year; and, 20 to date in 2022. The ordinance also references an increase to organized retail crime.

At committee meetings, police department representatives have said that, while city data does not indicate a serious spike, it shows an increase in retail theft over the past five years. Police also believe retail theft is underreported.

Asked by Marcano if she considered other solutions than jail time, Jurinsky said she did not. "I believe it's time we start putting people in jail," she said.

At an August meeting for the Public Safety, Courts and Civil Service Policy Committee, Chief Cassidee Carlson with the Aurora Police Department said she recently attended a Havana Street business improvement district meeting where retail theft was the group's main concern.

Major box stores have brought in their regional loss prevention managers, who said stores in Aurora are some of their highest grossing units but they are worried about losses from theft, Carlson said. Shoplifting is a perplexing crime for patrol officers to tackle because the suspect is usually gone by the time police can respond, she said. denvergazette.com

CVS Continues to Battle ORC
CVS Health completes rollout of time delay safes in three southern states to help reduce organized retail crime

All 213 CVS Pharmacy® locations across Louisiana, Mississippi and Arkansas now using time delay safe technology

As part of an ongoing commitment to support law enforcement and help build safer communities, CVS Health® today announced the installation of time delay safe technology in all 213 CVS Pharmacy locations, including those in Target stores, across three states in the southern U.S. The states and corresponding number of pharmacy locations include Louisiana (133), Mississippi (57) and Arkansas (23).

The safes are anticipated to help prevent pharmacy robberies and the potential for associated diversion of controlled substance medications - including opioid medications such as oxycodone and hydrocodone - by electronically delaying the time it takes for pharmacy employees to open the safe. In addition, the safes are anticipated to benefit the safety and well-being of CVS Pharmacy customers and employees.

The company's rollout of time delay safe technology is in support of each of these states' partnerships with local and state law enforcement and the retail community to fight back against escalating organized retail crime.

CVS Health first implemented time delay safe technology in 2015 in CVS Pharmacy locations across Indianapolis, a city experiencing a high volume of pharmacy robberies at the time. The company saw a 70 percent decline in pharmacy robberies among the Indianapolis stores where time delay safes had been installed. Since then, the company has introduced time delay safes across 32 states nationwide, and the District of Columbia, resulting in a 50 percent decline in robberies at CVS pharmacies in those local communities. prnewswire.com

Wegmans Self-Checkout App Shuts Down Over Theft Losses
Shoplifting losses force Wegmans to shut down self-scanning app
Wegmans will discontinue its SCAN App, which allows shoppers to scan and bag purchases as they move through the store, because too many people have been using it to shoplift. The company said it's aware the app is popular, but it is losing too much money to keep it going.

"SCAN users have told us they love the app and the convenience it offers. We love it too and have tried many adjustments to keep it. Unfortunately, the losses we are experiencing from this program prevent us from continuing to make it available in its current state," the company said in an email to SCAN customers.

Shoplifting - or shrinkage as it's called in the retail industry - is a known hazard at self-checkout, especially with handheld devices. But retailers generally accept a certain threshold of loss, which is offset by customer satisfaction and lower labor costs.

Whether it's by mistake or on purpose, the most common losses occur when customers fail to scan an item before bagging it or scan the barcode of a less expensive item, according to a report by Loss Prevention Magazine.

The same report warned that a retailer's losses could increase by 33% with a handheld scanning program.
Tops Markets uses a similar self-scanning program, which it will keep in use, it said. It has been able to keep losses manageable so far.

Wegmans introduced the SCAN App in 2020, just as Covid was transforming shopping habits. It was available in more than 90 Wegmans stores across the Northeast, including 11 stores in Western New York, according to the chain's website. buffalonews.com

How a new credit card code could help stop mass shootings
Code offers "significant" new tool for identifying shooters, one advocate said.

Portlanders are taking precautions to avoid being attacked in response to rising crime

Crime turns into hot-button issue headng into midterm elections

US: 97.2M Cases - 1M Dead - 93.4M Recovered
Worldwide: 615M Cases - 6.5M Dead - 594.1M Recovered

Private Industry Security Guard Deaths: 362   Law Enforcement Officer Deaths: 796

COVID Cases, Hospitalizations & Deaths

An Example of How Retail Workers Literally Risked Their Lives During COVID
German man gets life sentence for murdering cashier in COVID mask row
A German court sentenced a 50-year-old man to life behind bars on Tuesday for last year murdering a petrol station worker who insisted he follow rules and wear a coronavirus mask.

The shooting in the western town of Idar-Oberstein over pandemic restrictions shocked Germans at a time of fear that coronavirus deniers were turning to violence. The court found the defendant, identified only as Mario N. due to privacy laws, guilty of murder and sentenced him to life.

He had admitted killing the 20-year-old petrol station worker but pleaded to manslaughter with limited culpability. An expert had found alcohol in his blood. Prosecutors said the victim, a cashier, had asked the man to comply with rules and wear a face mask while paying for beer at the petrol station.

After initially refusing to do so and leaving, the defendant returned wearing a mask but pulled it down when approaching the cashier and after another brief exchange shot him in the head. The victim died immediately and Mario N. later gave himself up at a police station, saying the coronavirus measures were causing him stress.

Resistance to German restrictions aimed at curbing the spread of the coronavirus grew during 2020 and 2021 with thousands of people taking to the streets, including civil rights activists, vaccine opponents and far-right radicals. reuters.com

The Post-COVID Remote Work War Continues
The great RTO/WFH war means COVID is really over this fall
The latest loosened COVID guidance from the U.S. Centers for Disease Control and Prevention and the advent of Omicron boosters make it exceedingly clear: Employers that want workers to return to the office can demand it, and will.

Social-distancing is no longer recommended-nor is quarantining if you've been in close contact with someone with the sometimes deadly virus. The suggested quarantine length was lowered to five days-a time at which many people still spread the virus, according to researchers. Protection from Omicron boosters seemingly serves as further permission for employers to compel workers to return. Boosters are expected to provide good protection against severe disease and death from dominant circulating strains BA.4, BA.5, and their offspring. A point often missed: They're not expected to provide protection from infection and aren't known to prevent long COVID (though they may reduce the likelihood of it).

If it wasn't clear before, it is now: Working from home is no longer a veritable right for those eligible, but a privilege. fortune.com

America is Learning to Live with COVID
Public perception of COVID risk at low point: survey
Americans' concern about COVID-19 is at a low point as many move on from the pandemic even with the virus continuing to circulate, a new survey finds. The latest Axios-Ipsos Coronavirus Index released Tuesday found that views about mask wearing and concern about community spread of the virus have both dipped.

"The latest results find a country that has largely - though not completely - moved on from the pandemic," the report states.

The percentage of respondents who said they sometimes or always wear a mask when outside the home has dropped to 37 percent, down from 71 percent last September and 89 percent in September 2020. Americans reporting they're at least somewhat concerned about COVID-19 has also dipped, though not quite as steeply: The share is now at 57 percent, down from around 80 percent last September. thehill.com

Modern Digital Collaboration Tech Is Paving the Way to Hybrid Work
As they continue to experiment with new workplace models, companies lay the foundations to support remote collaboration.

Lingering airline crew shortages, surging demand threaten fall & winter travel seasons

Should I get the new COVID-19 booster? Here's what you need to know

WHO urges action as 17M long COVID cases estimated in Europe region