Retail Leaders Urge Passage of ORC Bill at Congressional Hearing
The subcommittee chairman blamed soft-on-crime policies for the problem

'Not a Victimless Crime': Retail-Industry Leaders Testify on Rising Organized Retail Theft and Fraud
Select leaders from the retail industry testified before the House Homeland Security Subcommittee on Counterterrorism, Law Enforcement, and Intelligence on rising organized retail crime across the U.S., with one witness declaring that the coordinated theft and fraud of retail items is "not a victimless crime."

The congressional testimony on Tuesday comes amid the Christmas shopping season as large organizations of professional shoplifters take advantage of soft-on-crime policies to steal store goods and, in many cases, resell them on the black market to make a profit. Organized retail crime is defined as two or more individuals, as part of a criminal enterprise, illegally obtaining retail merchandise through theft or fraud.

"Retail theft is not a victimless crime. It impacts jobs, consumers, and communities in several ways," said David Johnston, vice president of asset protection and retail operations at the National Retail Federation, according to the hearing's publicly available written testimony. "Increased violence involving theft has caused injury to employees and consumers, the unfortunate death of some retail associates, and a fear of working or shopping in high-crime locations. This makes it difficult for retailers to retain or find labor to support consumers."

In his opening statement, subcommittee chairman August Pfluger (R., Texas) said organized retail crime is different from shoplifting or petty theft, and that even transnational criminal organizations crossing the southern border into the U.S. are contributing to increasing retail theft in both urban and rural areas. Lenient crime legislation, including high felony-theft thresholds and weak bail-reform laws, are failing to deter criminals from engaging in such illegal activity after they are released, added Pfluger.

A combination of these open-border and soft-on-crime policies is causing big-box retailers to shut down business in certain locations. In addition to monetary loss, organized retail crime comes with heightened levels of violence.

The other witnesses, apart from Johnston, who testified in the retail-designated panel included Scott Glenn, vice president of asset protection at Home Depot; Abby Jagoda, vice president of public policy at the International Council of Shopping Centers; and Summer Stephan, district attorney of San Diego County, Calif., who testified on behalf of the National District Attorneys Association.

All four witnesses urged Congress to seriously consider passing the Combating Organized Retail Crime Act to further crack down on organized retail crime.  nationalreview.com  c-span.org

Click here to watch yesterday's hearing

   RELATED: Home Depot exec calls on Congress to pass bipartisan ORC bill


Home Depot VP of AP Says ORC 'Continues to Grow'
'We wouldn't invest to prevent that problem if we didn't see it affecting us'

Congress weighs in on retail theft, organized crime
Home Depot VP of Asset Protection (HD) Scott Glenn, who testified before Congress yesterday, joins Yahoo Finance to discuss the issue and what the hearing addressed.

JARED BLIKRE: Talk to me about the data point that you're bringing to Congress today because going back to that NRF change in statistics saying that nearly half of the industry's missing merchandise in 2021 was the result of organized theft, but that number is looking like it was more likely closer to 5%. That's obviously a huge change. So what data point are you citing to support the idea that organized retail crime is leading to a necessary increase in retail theft?

SCOTT GLENN: Yeah. So NRF and our third-party partners are helpful, but they're not-- they're not what we rely on. We rely on our own internal data, and our own trajectory, and what we're seeing in our stores every day. And so you know, what we are seeing is that the problem continues to grow. It's putting pressure on us year over year. And we are investing to prevent a problem, and we wouldn't invest to prevent that problem if we didn't see it affecting us day in and day out. So I appreciate the retraction, but that's not really what we rely on to make our business decisions.

JARED BLIKRE: Do you think this legislation is really what's needed to enable the federal authorities to crack down on this? Does it enable you, guys? I guess bottom line what I'm asking is what's different about this particular act?

SCOTT GLENN: What I would tell you is there's a patchwork of local, state laws out there and they vary by jurisdiction. We've been working very closely with many attorneys general who have established task forces to address this. Some of them use RICO laws to address this type of problem within their particular states. Ultimately, what we're looking for is that federal level when an attorney general is kind of barred from going outside of their state and aggregating upwards where complexity and the breadth and scale of some of these crimes warrant some type of federal action. finance.yahoo.com


Foreign Criminal Organizations Fueling U.S. Theft Surge?
Foreign-run organized theft rings ravaging US retail stores with immigrant shoplifters: FBI
Federal investigators have tracked major retail theft incidents back to criminal organizations in Europe and South America that send non-U.S. citizens into the United States with the sole objective of stealing.

These foreign crime rings are flying operatives into the country to do as much damage as possible at major stores, and the thefts contributed to the $112 billion total in retail losses in 2022, up from $94 billion in 2021, according to the FBI and Department of Homeland Security officials who briefed House lawmakers Tuesday.

Investigations launched by DHS's U.S. Immigration and Customs Enforcement's Homeland Security Investigations arm focus on the head honchos behind organized crime rings and have uncovered several such foreign-based groups that have targeted and continue to focus their efforts on hurting U.S. retailers.

"One such example is the South American Theft Groups (SATGs), which include organizations based in Colombia, Chile, and other countries," said Michael J. Krol, special agent in charge for HSI, in written testimony. "These groups recruit members and facilitate travel into the United States for individuals who then commit strategic thefts of high-value electronic devices. Items are stolen, consolidated, shipped to another location in the United States, and ultimately illicitly exported to foreign countries."

Krol pointed to another crime ring in which Romanian organized theft groups, or ROTG, based out of Eastern Europe recruit people to travel to the U.S. to commit various types of crimes, including retail theft.

FBI Deputy Assistant Director of the Criminal Investigative Division Jose A. Perez said the agency has launched an initiative targeting the South American theft groups and shared intelligence with law enforcement worldwide.

This specific ring consists of citizens from Chile and other South American countries who exploit tourist visas to travel to and from the U.S. to steal and then ship the goods internationally. washingtonexaminer.com


Can California Become the 'Model for America' in Fighting Theft?
Key to combatting retail theft is cracking down on online sales of stolen goods

By Cristine DeBerry is the Founder & Executive Director of the Prosecutors Alliance of California

The ease and speed of this digital convenience comes at a cost, as an alarming number of online retailers are peddling stolen goods taken directly from brick-and-mortar stores.

It's fair to assume that online retailers are vetted and trustworthy, given the fact that we willingly store our personal and financial information on these platforms. Yet, the reality is unsettling - a substantial portion of these seemingly legitimate online marketplaces harbor sellers dealing in stolen merchandise. Just last year, 41 people were arrested in New York after a three-year investigation uncovered $3.8 million of stolen goods from Bloomingdales and Duane Reade were being sold on eBay. In 2021, an Atlanta based father and daughter duo were sentenced to federal prison for selling more than $6 million of stolen goods on Amazon, Walmart & Sears. And in California, a man was arrested in the biggest organized retail crime bust in California history for selling $8 million in stolen goods in 2020.

The anonymity of the online marketplace makes it nearly impossible to distinguish between reputable sellers and those engaged in organized crime trafficking in stolen goods.  While retailer complaints about the explosion of thefts are overblown, we can reduce organized retail theft by cutting off the avenue for resale via online marketplaces like Amazon and eBay.

Many online platforms already utilize verification systems to highlight reputable storefronts. It begs the question - why not extend this practice to identify and promote verified, legitimate sellers? In 2022, the Prosecutors Alliance of California sponsored SB 301 that echoed the INFORM Act, passed by Congress, which took effect in June 2023 and requires online retailers to identify high-volume third-party sellers in an effort to prevent online sales of stolen goods and deter organized retail theft.

As a trailblazer of legislative initiatives, California has an opportunity to lead the charge in combating retail theft. By implementing a verification system for online sellers we can establish an extensive process to verify online sellers. Requiring online platforms to implement compulsory training for all online retailers, enables them to qualify for a verification checkmark. An extensive verification process would allow consumers to make informed decisions about who they're purchasing from, allowing them confidence that they are supporting legitimate businesses rather than fueling the retail theft epidemic.

By pursuing smart strategies to combat retail theft, California can become a model for the rest of the country and the world to follow - so you can buy your shampoo, and legally use it too. ocregister.com

 
Examining the Authority of Retail Security Guards
Security guards vs. shoplifters: What can guards do?
Security guards are often seen standing at store entrances and patrolling establishments' property, especially more during the holidays when store thefts tend to increase. But in Washington state, security guards don't have the same authority as commissioned police officers when it comes to stopping a shoplifter.

Except for helping in medical emergencies and breaches of the peace, security guards essentially have the same rights to act on crime as a citizen, according to SQ Attorneys, a team of Seattle criminal defense attorneys.

A breach of peace generally equates to an action that causes alarm or threatens a disturbance to the community. So a security guard could conduct a citizen's arrest and wait for a law enforcement officer to take the suspect into custody if a suspect crossed that threshold.

At a store, a guard can detain a shoplifting suspect if he or she has "reasonable grounds" to believe the suspect stole or was trying to steal from the store, according to state law. Those reasonable grounds includes knowledge the suspect has concealed possession of unpurchased merchandise from the store.

Under such circumstances, guards can ask a suspect to wait for an officer to arrive, but they cannot hold them against their will or use force, SQ Attorneys says.

A store's own policies on theft prevention and enforcement, in accordance with state law, often determine the actions of the guard, owner or employee.

Security guards have become more commonplace at Washington businesses, according to Mark Johnson, senior vice president of policy and government affairs at the Washington Retail Association. Johnson said increased thefts have caused more retailers to hire security personnel.

He said retailers with extreme theft issues have hired armed and unarmed guards as a "last resort" to keep their business open and provide a safe working and shopping environment. spokesman.com


Thefts Surge 30% in Pennsylvania
Retail theft rises in Pennsylvania after years of decline: report
After several years of declining retail theft, Pennsylvania has recently seen a jump in its number of retail theft offenses. According to data released by the Unified Judicial System of Pennsylvania, the state had a 30% increase in retail theft offenses from 2021 to 2022. The total number of retail offenses in 2021 it was 24,786 and in 2022 that number grew to 32,256.

This increase came after several years of declining retail theft numbers from 2018 to 2021. Despite the large increase in 2022, however, total offenses still have not reached pre-pandemic levels. In 2018 the total number of retail thefts offenses was 39,612 and in 2019 the total was 38,880.

The courts also released statistics on retail theft demographics as well as the months and counties with the most retail theft. According to this data, 50% of retail theft defendants between 2018 and 2022 were male, while 48% were female. The gender of the remaining 2% was unknown.

More, out of a total 84,887 defendants, 30% were between the ages of 26 and 35. The second highest age group was 36 to 45 at 20%, followed by 46 to 65 at 19%, and then 19 to 25 at 18%. December was the month with the highest percentage (10%) retail thefts between 2018 and 2022. It was followed by January, February, and October which each accounted for 9%. abc27.com


Crime Pushing Residents Out of Portland
Majority of Portland voters say they'd consider leaving if they could as crime, homeless concerns persist, new poll finds
About two-thirds of Portland voters say the city is on "the wrong track" and more than half would think about leaving if they could afford to, according to a new poll commissioned by the Portland police union. Sixty-eight percent of people surveyed said the city is "losing what made it special," with only about one in five voters saying the city's best days lie ahead. oregonlive.com


Oakland neighborhood uniting to help deter crime in their streets

1,000+ potential N.Y. State Police recruits attend processing weekend, most in decade

Personal Safety is Top Concern for Retail Workers
Store associates want new technology to detect threats and boost safety

Nearly Two-Thirds of Retail Workers Are Worried About Personal Safety this Holiday Season

New report highlights ways that technology, communications, preparedness and training can help retailers create safer stores for staff and shoppers alike

CHICAGO--As the year's peak shopping season hits its stride, an inaugural Retail Worker Safety Report from Motorola Solutions found that many retail workers and managers perceive safety incidents at their stores are on the rise. The survey's U.S. respondents reported that petty theft (54%), grab-and-run incidents (35%) and hostile customer interactions (31%) have increased in their stores over the past year, and as a result, nearly two out of three are at least somewhat concerned for their personal safety at work heading into the holiday shopping season.

"The holiday bustle can be a stressful time for retailers. Sales associates and managers shouldn't have to be concerned about their safety on top of everything else," said Sharon Hong, vice president, Ecosystem Solutions at Motorola Solutions. "Our report found that retail workers are looking for more technology that can help them be better aware of safety threats..."

Key findings from the report include:

• Low-tech communication channels are still heavily relied upon during store emergencies: Retail workers and managers said they access landline telephones (58%) and PA systems (45%) to report store safety concerns while nearly one-third (28%) would rely on yelling to inform coworkers of an incident.

• Technology can play a meaningful role in increasing retail workers' feelings of safety: Respondents said their stores currently feature video security systems (76%), alarm systems (64%) and merchandise sensors (44%), but that additional technologies would make them feel safer such as artificial intelligence (AI) to detect guns (42%), access control systems to lock doors when threats are detected (36%), wearable/mounted panic buttons to alert for help (30%) and license plate readers to identify vehicles associated with criminal activity (30%).

• Some retailers are updating their safety and security protocols to support preparedness: About one-third (36%) said their employer has introduced a new worker safety measure in the past 12 months, with top changes including increased emergency response training (49%), more timely communication about in-store incidents (41%) and additional security personnel (33%).

• Retail workers who feel safer stay longer: One in four (26%) respondents said they have considered leaving retail due to safety concerns.

To view the full findings of Motorola Solutions' 2023 Retail Worker Safety Survey, download the report here.  businesswire.com


Union Claims Kroger-Albertsons Merger Will Kill 1,200 Jobs
Teamsters Urge FTC to Reject Kroger-Albertsons Sale to C&S
The International Brotherhood of Teamsters is calling on Federal Trade Commission (FTC) to reject the sale of any assets of The Kroger Co. or Albertsons Cos. to C&S Wholesale Grocers as proposed in the companies' September 2023 divestiture plan. The Teamsters represent more than 22,000 members at Kroger and Albertsons nationwide.

Under the proposed divestiture plan, the union estimates that 1,200 Teamster jobs would likely disappear in the first weeks and months following the asset transfers, regardless of the eventual buyer. These estimates reflect displaced grocery distribution volume from Teamster-represented distribution centers servicing the remaining Kroger and Albertsons stores to those being sold.

"C&S has driven one grocery business after another into the ground for 30 years. This anti-union company has just one playbook when it comes to acquiring Teamster companies or grocery distribution contracts where our members work: Close it down, bail on pensions, and move the work to one of their nonunion sites," said Tom Erickson, Teamsters Central Region International VP and director of the Teamsters Warehouse Division. "The proposed plan by Kroger-Albertsons is unacceptable and we urge the FTC to reject it." progressivegrocer.com

   RELATED: U.S. lawmakers send letter to FTC protesting Kroger, Albertsons merger


Strong December Coming for Retailers?
Half of U.S. consumers left most of their shopping for December: report

Even though many retailers launched deals in October, a portion of holiday shoppers have waited until this month to start, according to a survey.

Following retailers' October and November sales, more than half (56%) of U.S. shoppers are more likely to do their holiday shopping in person in December than in other months, according to a recent Shopify-Gallup Holiday Shopping Pulse survey of 1,888 consumers.

Nearly half (49%) of U.S. holiday shoppers said they plan to do the majority of their holiday shopping this month. While 53% of consumers aged 50 or younger plan to do all or most of their shopping in December, 44% of shoppers aged 50 or older said the same, the survey found. retaildive.com


New York's minimum wage to increase to $16 per-hour New York beginning Jan. 1
New York's minimum wage will increase to $16 per-hour in New York City, Westchester and Long Island. The minimum wage price per-hour for the rest of the state will raise to $15. As part of the FY 2024 budget, Governor Hochul secured the increase for New York's minimum wage through 2026 and index to inflation beginning in 2027. It will be a $0.50 increase in 2025 and 2026, in 2027 the annual increase will be at a rate determined by Consumer Price Index for Ubran Wage Earners and Clerical Workers for the Northeast Region. wgrz.com

   RELATED: Local business owners react to NYS minimum wage increase


Uniqlo plans more than 20 new stores in North America in 2024

Casey's will add 150-plus stores in fiscal 2024; enters 17th state

Total retail sales rise 0.77% in November, according to CNBC/NRF Retail Monitor

Kroger orders employees back to the office

Los Angeles, CA: $500K Retail theft ring targeted Home Depot, Lowe's, CHP says
Authorities have arrested three people and seized roughly $500,000 worth of merchandise stolen from home improvement stores in Southern California, the California Highway Patrol announced on Tuesday. 54-year-old Jose Rivera, 43-year-old Fernando Hernandez, and 45-year-old Rogelio Ramirez Salgado face charges including organized retail theft, receiving stolen property and weapons-related offenses. On Dec. 11, investigators assigned to CHP's Organized Retail Crime Task Force raided a hardware and plumbing supply business on S. Central Avenue in L.A. where they discovered a massive stockpile of stolen goods, officials said. Items recovered included small tools, buckets of paint, extension ladders, and plumbing fixtures, along with larger and more expensive items such as water heaters and furnaces which, authorities say, were taken by various "boosters" from the home improvement stores. CHP says investigators also recovered five firearms and approximately $30,000 in cash. The search warrant was the result of a month-long investigation.  yahoo.com


Chicago, IL: Clothing store owners considering giving up on Chicago after latest crash-and-grab
Store owners in the West Loop said they can't take much more - having been hit by crash and grabbers Tuesday morning. The thieves did thousands of dollars in damage and stole $50,000 to $100,000 in merchandise - and this incident was the store's third hit in less than a month. CBS 2's Tara Molina has been investigating retail theft for years. She turned to the experts to see what can be done with this latest example of how difficult the crimes are to prevent. SVRN occupies a storefront on the ground floor of the 6-year-old Aberdeen East luxury apartment building at 171 N. Aberdeen St., right off Randolph Street. The streetwear store touts its mission as, "Bringing forth intersectionality within the industry by a means of self-expression through fashion, art, and culture." The owners - brothers David and Robert Kim - also told us they have done everything possible to protect themselves. The burglary happened around 3 a.m. The video shows the burglary crew was prepared - using several sport-utility vehicles and a chain to pull one of the concrete barriers - set up in front to protect the store - into the street. The thieves then pulled a vehicle up onto the sidewalk to crash through the front of the store and its security fencing.  cbsnews.com


Memphis, TN: Dozen more suspects charged in recent smash-and-grab burglaries
Shelby County District Attorney General Steve Mulroy announced Tuesday 12 more people have been charged in recent burglaries as part of the ongoing Operation Broken Bottles. "This situation is intolerable," said Mulroy about the recent rash of crimes. Mulroy said the recent smash-and-grabs are part of an organized retail crime ring. The Memphis Police Department said Operation Broken Bottles is aimed as cracking down on the break-ins and crimes across the city at various liquor stores, clothing outlets, cell phone retailers, and smoke shops. At the end of June, MPD announced 15 people had been arrested. The D.A. said those suspects were indicted, and these most recent charges bring the total number of suspects facing prosecution to 27. Mulroy said 18 remain in custody, and three of those charged have not been arrested and now have outstanding warrants. "We are taking these smash and grab jobs seriously," said Mulroy during Tuesday's news conference. "We are going to vigorously prosecute them. The message should be clear. If you commit these crimes, you will be prosecuted and you will go to prison." "One of the things that I like to say about organized retail crime, it is an absolute epidemic," said Jonathan McGraw with the Tennessee Organized Retail Crime Alliance. "It is on an epidemic level. It is impacting billions and billions of dollars that are causing just massive losses to retailers."  localmemphis.com


Mobile, AL: Grocery cashier charged with Organized Retail Theft
A grocery store cashier is being charged under Alabama's new retail theft law that went into effect September 1st. It seeks to deter the crime that cost Alabama retailers $1.2 billion last year, according to data from Capitol One. At the Navco Road Piggly Wiggly, Mobile Police say cashiers were putting on a show for the surveillance cameras by pretending to scan items but not pay for them. "Two cashiers sliding for each other," said owner Kamal Constantine. "That means not charging on the register." Store management spotted what was happening and detained 30-year-old Stephanie Hawthorne, who is now charged with organized retail theft. Police say the other unidentified cashier ran away. "It is a big problem," said Nancy Dennis, Alabama Retail Association Public Relations Director. Dennis says Alabama's new Retail Theft Crime Prevention Act cracks down on the problem. The new law allows retailers to sign warrants without leaving their store and gives thieves real jail time.  mynbc15.com


Salt Lake City, UT: Anti-Retail Theft 'Operation Holiday Steals' Leads to 28 Arrests
This week, the Utah Attorney General's CASE Strike Force concluded a multi-day retail theft blitz that resulted in 28 arrests and $12,000 recovered stolen property. The sweeping anti-theft sting included assistance from Cottonwood Heights Police, Salt Lake City Police, Taylorsville Police within their respective jurisdictions. In addition, Sandy Police, Park City Police, South Salt Lake Police, Adult Probation and Parole, State Fire Marshall, Immigration and Customs Enforcement, and U.S. Postal Inspectors assisted with personnel and equipment. These operations focused on individuals and groups stealing from nine participating retailers including Home Depot, Nordstrom, Target, Ross, T.J.Maxx, Sierra, HomeGoods, Old Navy, and Kohl's. This was in an effort to combat retail theft during the holiday shopping season.  attorneygeneral.utah.gov


Saratoga Springs, NY: Thieves steal $100,000 of merchandise from local boutique
A Saratoga Boutique was broken into and ransacked by two thieves early Tuesday morning. Surveillance footage shows two people smash through the door of Lola Saratoga on Broadway. Police were called to the store around 5am. It's estimated that over $100,000 worth of designer handbags were stolen during robbery. Lola owner Megan Druckman tells NewsChannel 13 she believes the thieves had meticulously cased the boutique. Druckman fought back tears as she talked about how hard she worked growing the business from nothing to a very popular boutique over the last ten years.   b95.com


Clearfield County, PA: Update: Woman Involved in Theft Ring Targeting Walmart Stores Pleads Guilty
An Altoona woman involved with a theft ring targeting Walmart stores and removing over $25,000 in merchandise, pleaded guilty to felony conspiracy charges Monday in Clearfield County. Police say Tammi Marie Koch, 38, was arrested after she returned to the Clearfield Walmart on Dec. 5, 2022. According to the affidavit of probable cause, she was part of a larger investigation into thefts at several Walmart stores, both in and out of Pennsylvania. Koch was identified as the "main female involved." Her tattoos helped make that connection because she had been arrested in Keyser, W. Va., for grand larceny at its Walmart. A Walmart employee on a task force told police Koch and a man later identified as John Setser, 32 also of Altoona, "pushed an entire cart full of merchandise, worth $1,664.49 past all points of sale" and made no effort to pay on Sept. 23, 2022. The two others involved in a November theft are Bridget Rezac, 48, and Travis Scott Chichy, 44, both of Altoona. During the second theft, video reveals that Koch and a man, separate after they enter the store with each filling up a cart before Koch leaves without paying again. She reportedly took items worth $2,196.58 at that time. In her interview with investigators, Koch admitted that the thefts occurred at various places but was shocked at the total dollar amount taken. She explained the items were sold online but "people do not pay that much for the items." Koch stated that she "likes to help people and gives friends and family money." On Monday, Koch was sentenced by President Judge Fredric J. Ammerman to 12 months to three years in state prison for felony counts of conspiracy/retail theft and receiving stolen property. This will run consecutive to a state prison sentence of six months to 24 months she received in Clarion County for misdemeanor retail theft on Nov. 15.  gantnews.com


Santa Rosa, CA: Police Arrest Theft Ring Suspects and Recover $10,000 of Merchandise
A theft crew in Santa Rosa faced heat from the police as they were nabbed in connection with a high-value heist of designer jackets valued at around $10,000. The Santa Rosa Police Department reported events that led to multiple arrests. The frosty caper began yesterday when two men allegedly orchestrated a retail theft, snatching armfuls of pricey outerwear from a store in the 2400 block of Magowan Drive. After their grab-and-dash, they quickly got in a waiting vehicle driven by a female accomplice. A vigilant witness noted the vehicle's license plate, initiating a rapid police investigation.  hoodline.com