Target Announces Wave of Crime Closures

9 Target Stores Closing Across 4 States Over Theft & ORC
Target Closes Select Stores to Prioritize Team Member and Guest Safety

We have made the difficult decision to close nine Target stores across four states, effective Oct. 21.

In this case, we cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance. We know that our stores serve an important role in their communities, but we can only be successful if the working and shopping environment is safe for all.

Before making this decision, we invested heavily in strategies to prevent and stop theft and organized retail crime in our stores, such as adding more security team members, using third-party guard services, and implementing theft-deterrent tools across our business. Despite our efforts, unfortunately, we continue to face fundamental challenges to operating these stores safely and successfully.

Looking ahead, we remain committed to serving these guests with more than 150 locations open in markets where the closures are taking place and an always-open experience at Target.com.

Our Efforts to Combat Theft and Organized Retail Crime


In our stores:

• Additional security team members, using third-party guard services, and implementing theft-deterrent tools across our business.

• On a limited basis, implementing tools such as locking cases

• Investing time and resources in training our store leaders and security team members

In technology:

• Making significant investments in cyber defense to combat retail theft, fraud and abuse.

• Partnering with the U.S. Department of Homeland Security's Homeland Security Investigations (HSI) division to combat retail theft.

• Applying our cyber capabilities to combat organized retail crime.

   Read Target's full press release here: corporate.target.com

   More Coverage of Target's closures: WSJ | New York Times | CNN | Axios 


The Industry Responds to Target's Crime Closures
RILA Statement on Target Store Closures
Washington, DC - The Retail Industry Leaders Association (RILA) issued the following statement in response to today's news that Target is closing select stores due to retail theft and organized retail crime threatening the safety of their employees and customers:

"Organized retail crime, habitual theft, and violence are significant challenges for retailers of all sizes, compounded by complex societal issues like mental health, addiction, and homelessness. Target's announcement today lays bare the substantial problems that exist in communities across the U.S., and the tough decisions that many retailers currently face.

"With that understanding, RILA launched a partnership with the National District Attorneys Association (NDAA) to help drive collaboration, education, and resources to help combat the problems of organized retail crime and habitual theft. As part of that partnership, RILA recently launched the Vibrant Communities Initiative, a whole-of-community, holistic approach to addressing retail crime. Our goal is to better understand the underlying, systematic drivers of habitual theft and recidivism so that retailers can help communities craft an effective long-term response. By collaborating with a wide range of stakeholders, including police, prosecutors, social service organizations and technology solution providers, our aim is multifaceted: Pilot new technologies and collaborative tools across the retail and law enforcement ecosystem, arrest and prosecute career offenders and those who are violent in stores; develop practices for identifying individuals qualified for diversion and steering them to appropriate social services as an alternative to incarceration.

"We know there is no one-size-fits-all solution, nor will there be an overnight resolution to the challenges facing retailers, law enforcement and local community leaders. But our objective is to identify effective approaches that can be shared and applied across the country to enact long-term, systemic change in how communities can tackle this challenge."   rila.org


NRF's 2023 National Retail Security Survey in the News

NRF's Findings Leave Shoppers Worried Ahead of Christmas Shopping Season
A troubling retail trend may make holiday shopping more dangerous

The National Retail Federation released its annual retail safety survey this week.

Shrinkage - a measurement of losses calculated by retailers - has been the topic of earnings calls from everyone from CVS Health to Foot Locker to Target, but with the holiday shopping season creeping up on us, consumers should be worried about a rise in a dangerous trend when it comes to retail theft.

It doesn't take much effort to find videos of large groups of people grabbing large amounts of merchandise off of store shelves and racks before running out of the stores. The latest numbers from the National Retail Federation's annual Retail Security Survey show that while the problem has gotten worse in recent years, shrinkage as a percentage of of sales has remained within historical limits.

Retailers reported average shrinkage of 1.6% in 2022. While that number was from 1.4% in 2021, it is in-line with the 1.6% that was reported in 2020 and 2019. Retailers reported average shrinkage of 1.4%, 1.3% and 1.2% in 2018, 2017 and 2016, respectively.

When taken as a percentage of total retail sales, shrinkage represented $112 billion in losses for retailers in 2022 compared to $94 billion in losses the previous year, with internal and external theft accounting for about two-thirds of losses.

But the biggest issue retailers are facing is the rising level of violence associated with the shrinkage they are seeing. thestreet.com


CNBC's Take On The NRF Survey Results
'Retail theft isn't actually increasing much, major industry study finds'

The effect of theft on retailers' bottom lines is largely in line with what it has been in past years, according to a key National Retail Federation study.

Retail theft has caught the attention of the masses in recent years, from startling smash-and-grab videos during the depths of the Covid pandemic to corporate earnings calls where retailers like Target and Foot Locker are discussing losses from organized retail crime more than they ever have.

But the effect of theft on retailers' bottom lines is about the same as it has been for years, according to the latest data released Tuesday in the widely used industry survey conducted by the National Retail Federation.

Total retail shrink grew to more than $112 billion in 2022, up from $93.9 billion the year before, according to the newest National Retail Security Survey. The metric, which accounts for various types of inventory loss including theft, damage and vendor error, generally rises as retail sales climb.

While retailers and the NRF are increasingly saying crime is cutting into profits, losses from internal and external theft last year were largely on par with historical trends. They made up 65% of total shrink, the survey found.

External theft, which includes organized retail crime, was again reported as the largest source of shrink last year at 36.15%, but that was slightly below 37% in 2021. Internal theft, or goods stolen by employees, rose slightly to 28.85% from 28.5% in 2021. Process and control failures and errors made up 27.29% of shrink in 2022, up from 25.7% the year prior. cnbc.com

   More Coverage of the NRF survey: Reuters | MSN | Chain Store Age | Footwear News

   Read the NRF's National Retail Security Survey here


How Some Retailers Are Beating the Theft Surge
Costco, Lowe's, Best Buy, and Tractor Supply are winning the battle against retail theft in a strikingly similar way

Leaders from Costco, Lowe's, Best Buy, and Tractor Supply have said their businesses aren't so affected by the theft surge.

Even as these retailers acknowledge a major problem facing their peers, they are managing to limit its effect on their businesses - Lawton even said shrink rates at Tractor Supply have come down for two years running.

Taking a closer look, it's clear that these four companies have several striking similarities - qualities that are helping them win the war on retail theft.

1. Store location and layout - With the exception of Best Buy, three of the four chains tend to have their stores in more suburban and rural locations that see fewer people.

2. Big, heavy merchandise - A lot of the merchandise these four retailers sell is too unwieldy to be conveniently stolen.

3. Secure displays - For smaller or more expensive items, all four retailers aren't afraid of requiring customers to get help.

4. Less self-checkout - Another big theme is the way each retailer handles self-checkout, which has been blamed for spikes in theft rates when it is introduced at stores.

5. More staff per square foot - All four retailers prioritize having knowledgeable, helpful staff and have high levels of customer engagement. businessinsider.com


Los Angeles DA Squabbles with Retail Group Over Theft Funding
Can anything be done to combat retail thefts? DA Gascón discusses
Los Angeles County District Attorney George Gascón said his office is committed to prosecuting these crimes to the fullest, and that they try to obtain the highest bail possible in certain circumstances. Despite that, overcrowding in the jail system can mean people who commit crimes like retail thefts are quickly released and sometimes reoffend.

"We're trying to make sure that our response to this is tailored based on the realities that we work with," he said. "So when people are there that... are repeat offenders, that they're gonna be held back in confinement until they face their charges and it's determined whether they're guilty or not."

Recently, the state of California offered various jurisdictions up to $2 million in grant money. The Los Angeles County District Attorney's Office did not apply.

Gascón points to many things as to why, including the resources the Los Angeles County Sheriff and Los Angeles Police departments already have, the capacity to hire in a timely fashion and the way bureaucracy works.

That is not a sentiment echoed by Rachel Michelin, President of the California Retailers Association. Michelin is disappointed Gascón did not apply for the funding, saying more resources are needed to combat retail theft and other issues throughout L.A. County. She believes that money could have augmented some of the other funding in the county.

Michelin also believes the amount of retail theft happening in the state may be more than what we realize. She thinks this is due to either retailers not reporting the crimes or police reports not taken at the scene of these thefts. abc7.com


San Francisco: Post-Apocalyptic Wasteland or Victim of a Media Narrative?
'They're making up stuff': How the narrative of S.F. as dystopian hellscape is affecting the city

A barrage of vitriolic stories might make you think San Francisco is a post-apocalyptic wasteland

San Francisco is a dystopian hellscape overrun by armed criminals and fentanyl addicts, its streets teeming with human waste, its buildings crumbling before our eyes.

That's the situation according to recent stories in major media outlets from CNN to Good Morning America, from the Financial Times to Newsweek, along with legions of posters on TikTok, Twitter, YouTube and Facebook, and perennial S.F. haters like Fox News, the New York Post and, of course, Elon Musk. Presidential candidates Ron DeSantis and Robert F. Kennedy Jr. also chimed in last week.

"They're making up stuff," said Rodney Fong, CEO of the San Francisco Chamber of Commerce. "It is absolutely unfair."

Civic and business leaders, as well as marketing experts, readily acknowledge that San Francisco faces major social problems amid a sluggish pandemic recovery. But the overwrought narrative that the city is in zombie apocalypse territory can only hurt it, they say.

"It is misrepresenting the city badly," said longtime press agent Lee Houskeeper.

In GMA's segment about Westfield giving up its namesake mall, a correspondent broadcasting live said it was "simply too dangerous" for him to be in Union Square or outside the mall at that hour, although, in fact, he was standing on a city sidewalk in the predawn darkness.

"It's definitely making prospective tenants think," said Kazuko Morgan, vice chair of real estate brokerage Cushman & Wakefield. "The due diligence is taking longer than ever before. This whole thing is just so blown out of proportion. They make it seem like it's Armageddon."  sfchronicle.com


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In Case You Missed It

Rexall Rolls Out Auror's Retail Crime Intelligence Platform Canada-Wide
Solving the ORC problem with Auror's Retail Crime Intelligence Platform
Rexall is one of Canada's leading pharmacy brands, with nearly 400 locations. Like many organizations, Rexall regularly faced obstacles in combating crime, loss, and harm - especially from repeat subjects and ORC groups.

Lack of structured intel on the incidents reported by stores, delayed intelligence, and the inability to identify and link subjects were frustrating challenges that hindered asset protection/loss prevention (AP/LP).

Rexall partnered with Auror to evolve its approach to solving the ORC problem. Rexall experienced early success during their 90-day pilot, and from 2019 to 2022, reported an impactful 17% reduction in shrink across their locations.

For Daryl Blackmore, Rexall's Director of Asset Protection, ensuring store safety was a key issue to address. "Empowering stores to take safe action is easier with Auror," says Daryl. With the rise in threatening behavior and ORC, actionable intelligence has never been more important. Daryl continues, "With the right information at the right time, our team members can stop accidents before they start."

With Auror's Retail Crime Intelligence platform, Rexall gained a clear view of how significant repeat subjects were to the company's profitability. When compared to non-repeat offenders, their financial impact was obvious. The average loss per incident for repeat offenders was $153, whereas the average loss per incident for non-repeat offenders was $30.

Rexall could now show high value cases to law enforcement in the Auror platform quickly and effectively. Working with Auror, 29% of all incidents were reported to law enforcement, 14 ORC investigations resulted in arrest warrants, and 12 ORC investigations results in criminal charges.

Following their initial pilot, Rexall completed a nationwide roll-out of Auror's Retail Crime Intelligence platform. Since then, Rexall has led a shift from collecting intelligence to driving outcomes. As the wins continue to come in, it's clear their approach is working. And it will only continue to improve as visibility across their stores increases even more. auror.co
 

It's Official: FTC & States File 'Landmark' Lawsuit Against Amazon
Amazon 'illegally illegally wields monopoly power, harming customers and hurting rivals.'

FTC and 17 states file sweeping antitrust suit against Amazon
The Federal Trade Commission and 17 state attorneys general on Tuesday filed a much-anticipated antitrust case against Amazon, alleging the retailing giant illegally wields monopoly power to maintain higher prices, harming customers and hurting rivals.

"Our complaint lays out how Amazon has used a set of punitive and coercive tactics to unlawfully maintain its monopolies," FTC Chair Lina Khan said in a statement. "The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them."

She added, "Today's lawsuit seeks to hold Amazon to account for these monopolistic practices and restore the lost promise of free and fair competition."

The legal showdown comes after Amazon attorneys gave no ground in discussions last month with the FTC, both Politico and the Wall Street Journal reported. The complaint focuses on Amazon's business practices that the FTC contends block lower prices on rival sites and compel merchants to use the e-commerce company's logistics and advertising services.

The lawsuit alleges that Amazon is operating uncompetitively in two markets - the online superstore that most consumers are familiar with, as well as the market for online marketplace services bought by sellers.

Amazon allegedly uses anti-discounting techniques to deter online retailers from offering prices below Amazon's. The retailer will "bury discounting sellers so far down in Amazon's search results that they become effectively invisible," the FTC claims.

The lawsuit also alleges that Amazon pushes sellers to use its expensive fulfillment service in exchange for obtaining "Prime" eligibility for their products, which the FTC noted is a "virtual necessity for doing business on Amazon." cbsnews.com  forbes.com  nytimes.com

   Read the FTC press release here


Amazon Responds to Lawsuit
The FTC's lawsuit against Amazon would lead to higher prices and slower deliveries for consumers-and hurt businesses
Over the last several years, we've engaged cooperatively with the U.S. Federal Trade Commission (FTC) during a broad-ranging investigation of our business. It was our hope the agency would recognize that Amazon's innovations and customer-centric focus have benefited American consumers through low prices and increased competition in the already competitive retail industry.

We respect the role the FTC has historically played in protecting consumers and promoting competition. Unfortunately, it appears the current FTC is radically departing from that approach, filing a misguided lawsuit against Amazon that would, if successful, force Amazon to engage in practices that actually harm consumers and the many businesses that sell in our store-such as having to feature higher prices, offer slower or less reliable Prime shipping, and make Prime more expensive and less convenient.

The FTC's complaint alleges that our pricing practices, our Fulfillment by Amazon offering, and Amazon Prime are anticompetitive. In so doing, the lawsuit reveals the Commission's fundamental misunderstanding of retail. aboutamazon.com


New Legislation to Fight Online Counterfeits
Senators Coons, Tillis introduce SHOP SAFE Act to crack down on harmful counterfeit e-commerce goods
WASHINGTON - U.S. Senators Chris Coons (D-Del.) and Thom Tillis (R-N.C.) introduced the Stopping Harmful Offers on Platforms by Screening Against Fakes in E-Commerce (SHOP SAFE) Act today to protect consumers from harmful counterfeit products that are sold online.

Last year, Americans spent more than $1 trillion on e-commerce for the first time ever. As more American consumers opt to shop online, they are increasingly vulnerable to the rising number of harmful counterfeit goods sold on e-commerce platforms - toys, car seats, electronics, bicycle helmets, apparel and footwear, car parts, and more. The SHOP SAFE Act would reduce the availability of harmful counterfeit products online by incentivizing platforms to engage in best practices for vetting sellers and goods and stopping repeat counterfeiter sellers.

"As Americans have increasingly turned to e-commerce for convenience, selection, and safety, some third-party sellers have begun to exploit consumers' trust in established online marketplaces to trick them into purchasing dangerous counterfeit goods," said Senator Coons. "These counterfeit goods pose health and safety risks, damage the reputations of legitimate brands, and line the pockets of organized crime. The bipartisan SHOP SAFE Act is an important step that will protect consumers and encourage greater transparency and accountability."

The SHOP SAFE Act will:

• Establish trademark infringement liability for e-commerce platforms when a third party sells a counterfeit product that poses a risk to consumer health or safety and that platform has not implemented certain best practices;

• Require brand owners to provide platforms with advanced notice of their mark(s) and a point of contact so that the platforms can implement proactive measures to prevent sales of counterfeit goods; and

• Provide a safe harbor from liability for platforms that vet sellers to ensure their legitimacy, remove counterfeit listings, and remove sellers who repeatedly sell counterfeits. coons.senate.gov


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