Retailers Turn to Technology to Fight Violence
Mitigating retail violence requires a layered approach

By Scott Thomas - US National Director, Signature Brands at Genetec

No retailer is immune. Convenience stores, fast food restaurants, grocery stores and malls are likely targets. Any type of retailer can experience in-store violence, with perpetrators ranging from unstable or angry individuals to organized retail crime (ORC) gangs.

Multi-layered security approaches can help

Retailers are turning to technologies that can increase real-time situational awareness, deter criminal acts, gather evidence and enhance collaboration with local law enforcement.

Real-time situational awareness: A unified security platform integrates a range of technologies from a single command center, giving stores the ability to identify and respond to threats faster. For example, a unified platform can combine video from various sources like automatic license plate recognition (ALPR), facial recognition, or body-worn cameras equipped with real-time analytics for detecting known suspects or vehicles, which may signal a crime is about to occur.

Modern deterrents: Self-checkout stations are an increasingly common target for criminal activity. Weight sensors and overhead cameras connected to a unified security platform can alert staff to irregular activity and speed responses. Body-worn cameras (BWCs) are also being tested.

Evidence gathering: Retailers are being encouraged by law enforcement to bolster evidence gathering and collaborate with other retailers to bring down large ORC theft and fencing operations. Modern security systems with cloud-based storage and sharing capabilities can easily meet those needs.

Private and public collaboration: Security technology that integrates with local law enforcement can produce crime-fighting partnerships. This aids in threat assessment and early dispatch, giving responding officers visibility into emergency situations.

Making stores smarter and safer: A retailer’s top priority is to keep its employees and customers safe. Technology is one tool that helps retailers mitigate retail violence.

A multi-layered approach that includes unified security platforms, sophisticated real-time analytics and private-public collaboration can help. While there will always be criminal activity, retail stores can take steps to protect their brand, their inventory and most importantly, their employees and customers.

Contributing factors | Impacts to retailers | Read the full article here: securitymagazine.com


ALTO Store Alliance Helps Cut Violence & Shrink by 30%
Kroger and Walgreens have a new way to fight theft

It's an approach that will appeal to anyone looking to make an example out of every person who tries to steal (Walmart and Target take note).

Both Walgreens and Kroger have been working with Alto, a company that mixes technology and human resources to make it easier for retailers to give law enforcement what they need to arrest and prosecute shoplifters.

How Walgreens and Kroger's new partner works

Alto customers get access to an app that allows its frontline workers — clerks, check-out people, and those folks who monitor self-checkout — to report on-sight incidents as they happen. Once they do that, Alto assigns a support person to the store who immediately heads out to the location in order to collect evidence, which is then passed on to Alto's legal which "helps build cases for the DA to hold offenders accountable."

"These minor thefts add up, and offenders are getting more violent. Alto is also able to connect the dots between offenders who target different stores it works with (e.g. a Walgreens and a Target), which they could not do on their own."

"Stores in the Alto alliance have reported up to 30% reduction in shrink and violent incidents over the past 12 months," the security company shared.

Alto helped a retail partner catch the 'Diaper Guy'

Alto CEO Cristian Lopez shared a recent success story with TheStreet. One of the company's retail partners had a repeat offender known by the nickname "diaper guy." Her had been stealing from the store on a weekly basis. This ultimately led to the suspect being arrested. And, in this case, it turned out to be a success on multiple fronts as the former "diaper guy," was given rehab as an option by the court.

That, of course, is a best-case version of potential outcomes. This program results in more arrests — that's the goal, not helping criminals turn their lives around. Working with Alto, however, does give stores a missing piece of the puzzle if they're looking to use potential arrest and punishment as a way to deter other criminals. thestreet.com


Target's Bumpy Road Continues After Announcing Crime Closures
As Target shutters some stores, retailer looks to prove it can grow and avoid new setbacks

Target’s store closures, which it attributed to theft, were the latest in a string of public setbacks.

In the Harlem neighborhood of New York City, Target’s first store to open in Manhattan has permanently shut its doors. The retailer has closed eight other city stores around the country.

Target’s closures, which the company blamed on theft and violence at a time when sales have stagnated, marked the latest in a series of public setbacks for the big-box retailer— a jarring turnabout for a company seen as a major Covid pandemic winner.

The company, in many ways, embodies both the benefits retailers saw during the Covid pandemic spending boom and the unique challenges they have faced coming out of it.

Like other retailers, Target is dealing with softer sales. It has coped with other dynamics, too, including stocking too much of the wrong inventory, backlash over its Pride collection, and losses from theft and organized retail crime.

Some other retailers, such as Nordstrom and Walmart, have also shut stores in major cities — though they have not specifically blamed theft. Those companies’ closed stores, in San Francisco and Chicago, respectively, may have also felt the impact of people moving to suburbs or spending half or more of their workweeks at home.

Target’s Mulligan said evaluating and closing stores is a routine part of operating a company. Some locations don’t work, he said, and Target believed the nine stores that it closed in the New York, Seattle, Portland, Oregon, and San Francisco areas weren’t safe anymore.  cnbc.com


Lawmakers Urge NY Governor to Sign Bill Establishing Retail Crime Task Force
NY state lawmakers, Capital Region law enforcement call for retail crime task force
Two Capital Region state Assemblymembers are urging New York Governor Kathy Hochul to sign a bill they say will protect retailers and their employees.

Assemblyman John McDonald of the 108th district, one of the measure’s cosponsors, says $4.4 billion is lost to retail theft annually in the state, and $100 billion nationally. Speaking Thursday in Albany as the holiday season neared, the Democrat called on Hochul to sign the bill, which would establish a state organized retail crime task force.

The 15-member body will consist of appointed representatives from retail business organizations, law enforcement, and other interests. Assemblywoman Pat Fahy, whose 109th District includes Albany, says theft also drives business away from local stores and toward online retail.

Albany Mayor Kathy Sheehan says theft is often a symptom of larger problems in society. “We have hundreds and hundreds of empty beds sitting in facilities that provide addiction services. And so we're not connecting people to those services as well,” Sheehan said.

Melissa O’Connor of the Retail Council of New York State says 14 other states have already established a similar task force, and New York must follow their lead.

“In the meantime, the Retail Council of New York State continues to work with community groups, law enforcement, prosecutors, lawmakers to educate them on the challenges facing small and large stores throughout the capital region in the state. And we look forward to having this bill signed into law ultimately,” O'Connor said.

Hochul’s office says the Democrat is reviewing the legislation. wamc.org


Will ORC Continue to be the Hot Topic in Earnings Calls?
Retail ‘shrink’ is about much more than theft, analysts say
As retail earnings kick off this week, investors will be watching closely to see whether organized retail crime is still casting a shadow over the sector.

Crime has been a hot topic in recent earnings seasons, cited by major retailers such as Target Corp. In August, when Target reported second-quarter results, CEO Brian Cornell reiterated his previous comments about inventory “shrink,” saying that the company is facing an “unacceptable amount” of retail theft and organized retail crime.

But analysts say there is much more to retail-industry shrink than just theft. “Over the course of 2022 and 2023, retailers have increasingly highlighted rising shrink concerns and related headwinds on margin,” William Blair analyst Dylan Carden said in a recent note. “We believe context is important, namely that much of the increase in 2022 was related to shrink normalization coming out of the pandemic, when temporary closures and subsequent in-store shopping restrictions led to a more dramatic decrease in shrink.”

William Blair analyst Carden says elevated shrink is expected in 2023, coinciding with growing organized retail crime. However, he feels there’s a disconnect between the expected increase in shrink and the level of attention the topic has drawn. “While theft is likely elevated, companies are also likely using the opportunity to draw attention away from margin headwinds in the form of higher promotions and weaker inventory management in recent quarters,” Carden added. “We also believe some more recent permanent store closures enacted under the cover of shrink relate to underperformance of these locations.” marketwatch.com


Murders Drop 10% in Chicago, But Robberies Up 25%
Despite drop in murders, other major crimes are up significantly

Chicago sees highest crime year post-pandemic
Chicago is looking at its highest crime rates since before the COVID-19 pandemic, leading some to question the criminal justice system's overall effectiveness.

While Chicago has seen murders drop by 10 percent in 2023, other major crimes have significantly increased. Car thefts are up 52% and robberies are up 25%. Chicago saw nearly 80,000 major crimes in 2023, which, according to Wirepoints, is 29,000 more crimes than in 2019.

Ted Dabrowski of Wirepoints told The Center Square that crime is increasing due to a lack of support for the men and women in uniform.

"Until you get the police to be able to do policing freely and confidently and with confidence, I think we are going to have a big problem," Dabrowski said. "Especially with the continued lack of support they've seen from Chicago leaders and others."  washingtonexaminer.com


House ORC Bill Gets More Cosponsors
H.R.895 - Combating Organized Retail Crime Act of 2023
Four new co-sponsors signed onto the legislation (3 Republicans and 1 Democrat), bringing the total to 83 cosponsors (43 Democrats, 40 Republicans). It's picking up activity. Is your representative supporting it?

 
The Times UK: 'Crime Epidemic' in Retail
UK: ‘Pressure cooker’ of shoplifting puts staff at risk, says Co-op

Supermarket suffers 1,000 incidents a day, from theft to assault

Co-op has warned that urgent action is required to stem a “crime epidemic” as shoplifting, abuse, violence and anti-social behaviour incidents in its stores almost doubled to 300,000 this year.

The retailer has suffered around 1,000 incidents every day across its network of 2,400 shops over the first six months of the year.

Staff faced 1,130 physical assaults, up 35 per cent year-on-year, while antisocial behaviour and abuse levels rose 39 per cent to 36,000.

Specialist teams have detained 3,000 serious offenders this year but more than three quarters of the time police have failed to show up, leading bosses to warn of a “pressure cooker” situation with store workers and customers put at risk.

Matt Hood, the Co-op managing director, said that more than £200 million had been invested over recent years in initiatives including CCTV, body-worn cameras, dummy packaging and undercover guarding.

The union has launched its Respect for Shop Workers week, with Co-op hosting more than 50 MPs and police chiefs in its stores to demonstrate the impact retail crime has on staff.

Retailers lost a record £950 million to customer theft in the 12 months to March 31, up from £663 million the previous year, according to the British Retail Consortium. thetimes.co.uk


‘Curbing UK retail crime will need a broad approach’
The surge in shoplifting is becoming an urgent issue for retailers. With the crime up 25% in the past year, the police recorded more than 365,000 theft offences against businesses, putting staff and profits at risk.

Retailers are sounding the alarm. The Co-op noted that thieves cost it £33m in the first half of 2023, while Dame Sharon White, outgoing chair of John Lewis Partnership, recently labelled shoplifting an “epidemic” that cost her business an additional £12m year on year.

Beyond the direct effect on the bottom line, shoplifting has had a devastating impact on staff morale.

The Retail Trust found that 80% of retail employees experienced a deterioration in wellbeing in the past year.

For an industry struggling to attract and retain people in sufficient numbers, ensuring the safety and wellbeing of store staff becomes even more critical.

The rise of organized retail theft

About two-thirds of those stealing from local shops are repeat offenders, some with connections to organised crime, according to a report by the Association of Convenience Stores. retail-week.com


In Case You Missed It
UK: Theft to cost retailers £7.9bn in 2023, study finds
Among those that have seen an increase in employee theft over the past year, 70% state they've seen an increase in organised crime in DCs.

Co-op boss says criminal gangs are operating ‘exempt from consequences’

Why is retail theft on the rise in Massachusetts?

It's International Fraud Awareness Week
What You Can Do to Get Involved in Fraud Prevention
Fraud Week is the perfect time to go a step further in your role as an anti-fraud professional and to start discussions amongst peers, coworkers, executives and stakeholders in your community about how important fraud prevention is to society as a whole. You can use any of the free resources provided, or get creative and put your own twist on some of the ideas presented below.

Ways to Get Involved

• Post on social media using informative images with the tag #fraudweek

• Invite a Certified Fraud Examiner (CFE) to talk to your employees and coworkers virtually on how to avoid common mistakes when preventing fraud.

• Download the free Fraud Week logo to share on materials or websites.

• Involve your local chamber of commerce or city council to spread tips on fraud prevention for small businesses.

• Encourage your governor to issue a proclamation (.doc) declaring that your state supports Fraud Week.

• Issue a press release showing your organization's support by using this customizable press release template (.doc).

• Host a talk or seminar for your coworkers or community on regularly staying aware of fraud prevention best practices. You can post that event to share what you are doing on our events page.

• Perform a fraud check-up for your organization and present your findings to executives, as well as a proactive plan for how to remedy weak spots in your current controls. fraudweek.com

   RELATED: International Fraud Awareness Week Resources


Businesses & Consumers Continue to Embrace Biometrics
Mastercard Launches Biometric Payments Partnership With NEC
Mastercard has teamed with NEC to bring biometric checkout to the Asia Pacific region. The partnership, announced Tuesday (Nov. 14), combines NEC’s facial recognition and liveness verification technology with Mastercard’s payment operations, and comes as consumers and businesses are increasingly embracing biometrics.

“As retailing environments continue to evolve and choices in ways to pay rapidly expand, biometric solutions offer a seamless, quick and secure checkout, without needing to unlock a phone or insert a PIN,” Ajay Bhalla, president, Cyber and Intelligence Solutions, Mastercard, said in a news release.

Mastercard launched its biometric checkout program in Brazil last year with its “Smile and Pay” offering, allowing in-person payments to transact with a smile or the wave of a hand. The company says the technology’s benefits for merchants include shorter lines, added security and more hygienic conditions, while offering a “more engaging relationship” with customers.

Mastercard’s latest partnership is happening amid a flurry of product launches involving biometric payments, including Amazon’s announcement that it was integrating radio-frequency identification tags into its biometric-first Just Walk Out retail stores.

Research by PYMNTS Intelligence finds that of the nearly 60% of consumers surveyed who had conducted online purchases in the prior 30 days, 51% used biometrics.

“Drilling down into the data further reveals that facial recognition and fingerprint scans emerged as the most popular biometric methods, with about 28% and 49% of consumers using them, respectively,” PYMNTS wrote in September. “In addition, 58% of facial recognition users use the method more than once weekly.” pymnts.com


Self-Checkout Woes Continue
Walmart, Costco and other companies rethink self-checkout

The backlash against self-checkout is growing, and stores are starting to dial back on the technology after it exploded over the past few years.

Retailers are rethinking self-checkout. Shrink has been a growing problem for retailers, who have blamed shoplifting for the increase and called for tougher penalties. But retailers’ self-checkout strategies have also contributed to their shrink problems.

One study of retailers in the United States, Britain and other European countries found that companies with self-checkout lanes and apps had a loss rate of about 4%, more than double the industry average.

Stores have tried to limit losses by tightening self-checkout security features, such as adding weight sensors. But additional anti-theft measures also lead to more frustrating “unexpected item in the bagging area” errors, requiring employees to intervene.

Walmart removed self-checkout machines at some stores in New Mexico earlier this year. ShopRite pulled them at a Delaware store after customer complaints. Wegmans last year ended a mobile app that allowed customers to scan, bag and pay for groceries while they shopped after reporting losses. Costco said it’s adding more staff in self-checkout areas after it found that non-members were sneaking in to use membership cards that didn’t belong to them at self-checkout.

Five Below, the discount toy retailer, said that shrink at stores with more self-checkout lanes was higher. The company plans to increase the number of staffed cash registers in new locations. cnn.com  cbsnews.com


Retailers Be Aware: Possible Unrest Coming Today
Biggest protest during S.F.’s APEC is expected today. Here’s what to know
Organizers are planning to gather again Wednesday in what could be the tensest demonstration yet in opposition to the international conference. Protesters are planning to try to block attendees from entering APEC’s CEO summit, where high-profile attendees include the CEOs of Microsoft, Google, Salesforce and OpenAI.

The No to APEC Coalition, a group of over 100 distinct activist organizations from various nationalities and with various agendas, is planning to gather in the heart of San Francisco at Market and Powell streets and march to the heavily barricaded and secured Moscone Center, where thousands of foreign dignitaries are crafting economic deals behind closed doors. With the arrival of President Joe Biden and Chinese President Xi Jinping along with other world leaders, security will be the tightest it has been all week.

The protests have the potential to harm the city’s reputation, if they either get chaotic or are handled with a heavy hand by law enforcement agencies. The city is already under a microscope as officials try to clear unhoused people and open-air drug users and dealers from its streets.  sfchronicle.com


Americans Cut Retail Spending By 0.1% in October
US retail sales fell in October for the first time in seven months
Americans cut their retail spending in October for the first time since March, with interest rates at a 22-year high. Retail sales, which are adjusted for seasonality but not inflation, fell 0.1% in October from the prior month, the Commerce Department reported Wednesday. That’s the first monthly decline since March and was a smaller decline than economists were expecting.

October’s decline in retail spending is potentially an early sign of a slowing economy as US consumers get squeezed by higher borrowing costs and they continue to rack up credit card debt. Retail sales account for a portion of total consumer outlays, which account for about two-thirds of overall economic activity.

The National Retail Federation expects spending this holiday season, which it defines as Nov. 1 through Dec. 31, to grow 3% to 4% from the same period last year. That would be down from a 5.4% increase in holiday sales last year and a 12.7% jump in 2021, according to Commerce Department figures. cnn.com wsj.com


The Bay Area's Retail Exodus Continues
Bay Area REI store will close in January
An REI store in Fremont is closing permanently in mid-January, the company confirmed to SFGATE. The outdoor apparel and gear shop has operated at 43962 Fremont Blvd. for more than a decade. It hasn’t yet confirmed its final day of operation.

"The operating costs of the store – payroll, building and property maintenance and care – unmet sales growth, a less-than-ideal location for customers, and more mean that the location is no longer a good fit for the co-op," the spokesperson said.

The announcement comes as other large retail chains shutter locations throughout the Bay Area and REI itself rethinks its brick-and-mortar strategy. The company laid off 275 employees in October as part of a restructuring of its store operations. sfgate.com


Hy-Vee’s retail stores will be closed Thanksgiving Day

Avon Launches Retail Stores in UK