Congressional ORC Hearing Makes More Headlines

Lawmakers Call for Clear Data to Help Fight America's Theft Surge
Member of Congress calls for better data on organized retail crime & other theft

In testimony endorsing a bill that would have the Department of Homeland Security tackle organized retail crime, the National Retail Federation left out its previous statistics on its impact.

David Johnston, NRF vice president of asset protection and retail operations, appeared before the House Homeland Security Committee's Subcommittee on Counterterrorism, Law Enforcement and Intelligence to endorse the "Combating Organized Retail Crime Act," which has been introduced in both the House and the Senate. Among the bill's provisions are expansion of the federal enforcement of criminal offenses related to organized retail crime and of the scope of conduct that qualifies as an offenses; latitude for prosecutors under federal money laundering statutes; and the establishment of an Organized Retail Crime Coordination Center "within the Department of Homeland Security to coordinate the federal law enforcement activities related to organized retail crime."

Johnston's oral testimony and the group's written statement to the committee didn't include statistics specific to organized retail crime or other kinds of theft. The lack of certainty, which includes confused terminology as well as numbers, may be a sticking point for lawmakers.

"We've got to figure out some solutions there, but, you know, smash and grab, organized crime, retail theft - it's hard to figure out which is which," Lou Correa (D-California) said during the hearing. "But if you don't know which is which, then it's even harder to come up with a good solution. And I look forward to working with all of you and trying to figure this out. Get some real data, so that, based on that data, folks up here can come up with good public policy with the administration and come up with real solutions in real time."

Johnston described organized retail theft as a serious and growing problem. "Employees, consumers communities, we are all victims of organized retail crime," he said. "Our retailers have reported, as I eluded in my oral testimony, many of them have seen increases of 100% or more over last year ... Those were all time highs to begin with last year. Injuries, deaths, so employees are fearful. No employee should wish to go to work in fear for their job. No employee should have to quit or leave a job for fear." retaildive.com


Cooperation, Communication, and Collaboration Key to Fighting ORC
Rising ORC: Congressional hearing highlights need for national action
The House Homeland Security Committee's Subcommittee on Counterterrorism, Law Enforcement, and Intelligence held a hearing Tuesday entitled, "From Festive Cheer to Retail Fear: Addressing Organized Retail Crime." The hearing lasted for more than two hours and included seven witnesses.

"You think having a billionaire like George Soros spending $40 million of his own money, supporting leftist prosecutors, and DAs who are soft on crime might have something to do with it?" Rep. Eli Crane, R-Ariz., questioned three of the witnesses. "Any trends there?"

The three law enforcement witnesses and Democratic lawmakers did not agree with the Republicans' assessment that the issue of ORC is because of Democrat policies on crime and the border.

There was shared disappointment when it came to the safety concerns these criminals pose. The witnesses shared some store workers have even lost their lives.

A bipartisan group of lawmakers and retail industry leaders are pushing for the passage of the Combatting Organized Retail Crime Act. The proposed legislation would establish coordination between several agencies to stop the wide-scale theft.

A recurring theme throughout the hearing was the need for more cooperation, communication, and collaboration between law enforcement agencies. wpde.com


NRF's Wrap-Up of Congressional ORC Hearing
ICYMI: NRF Expert Testifies Before House Hearing on Retail Crime
WASHINGTON, December 13, 2023 - Yesterday, the House Homeland Security Committee Counterterrorism, Law Enforcement, and Intelligence Subcommittee held a hearing titled "From Festive Cheer to Retail Fear: Addressing Organized Retail Crime."

NRF Vice President of Asset Protection and Retail Operations David Johnston testified on behalf of the retail industry. A copy of his written statement for the record can be viewed here and a recording of the full hearing is available here.

On ORC's Alarming Growth: "Despite some recent press articles that look to downplay ORC or argue about data, it is abundantly clear from retailers' experience with ORC that the criminal activities we witness in stores across the nation and the incidents of violence tied to them are on the rise."

On the Widespread Impact of ORC: "Retail theft is not a victimless crime. It impacts jobs, consumers and communities in several ways. 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."

On the Need for Federal Support: "We need government at every level to take actions that curtail the ability and opportunity for these criminal organizations to profit from stolen merchandise, and to send the signal that this type of criminal activity will no longer be tolerated."

As the leading authority and voice for the retail industry, NRF has long advocated for policy solutions, including the Combating Organized Retail Crime Act, to stifle the threat of retail crime in stores large and small across the country.   homeland.house.gov


Shoplifting Losses Outweigh Any Savings from Self-Checkout Machines
With Theft on the Rise, Dollar General, Walmart, and Other Retailers Ditch Self-Checkout Machines

Retailers hoped to cut employee wages with self-checkout machines. It turns out they can't catch shoplifters.

Small retail businesses owners looking to cut costs should learn from the mistakes of their large corporate competitors, many of which are walking back their investments in self-checkout technology. Walmart, Target, and most recently Dollar General are all rethinking their DIY checkout systems, as losses from increased shoplifting have come to outweigh savings from reduced employee headcount.

Dollar General CEO Todd Vasos told investors during the company's third quarter earnings call last week that it plans to boost its employee wage budget over the next year in order to expand human supervision around self-checkout areas. A main reason for the move, Vasos said, was the rising rate of "shrink"--an industry term for shoplifting--that's eaten into Dollar General's bottom line.

So how do you combat the spreading sticky-hands epidemic if new technology appears to facilitate that very theft? For Dollar General, the effort starts with redeploying staff to keep an eye on the thousands of self-checkout units it's introduced across its 19,000 stores, in part to cut labor costs. In that way, company leadership hopes that having people watching the machines will keep customers honest.

Lowes CEO Marvin Ellison, however, thinks there's an easier and better solution. Ellison believes the secret to the home improvement chain's success in limiting 2022 losses from theft to just one percent of total sales lies in having maintained--and even increased--staff levels in stores in the first place, but not just at checkout.

Investing further in floor associates training and salaries, he adds, not only results in better service for customers, but also inspires employees to be eagle-eyed in their shared defense of Lowes' interest. Meaning, even in the battle against shrink, you only get what you pay for.  inc.com


Ranking the Most Dangerous & Safest States
Safest and Most Dangerous States in the U.S.: Annual Ranking Updated

WalletHub ranks the safest and most dangerous states using 52 key indicators, including personal, residential, financial, roads and more.

Vermont is the safest state in the U.S., while Louisiana ranks as the most dangerous, according to the 2023 Safest States in America report by personal finance website WalletHub.

The annual rankings look at 52 key metrics grouped into five major categories: personal and residential safety; financial safety; road safety; workplace safety; and emergency preparedness.

New Hampshire, Utah and Massachusetts round out this year's top five safest states. This is the third consecutive year Vermont has taken top honors in WalletHub's Safest States rankings.

Connecticut ranked highest in personal and residential safety on this year's list, while Utah topped the rankings in financial safety, New Hampshire topped the list for road safety, Vermont led the way in workplace safety and Alaska earned top honors for its emergency preparedness.

This Year's Most Dangerous States

Louisiana ranked 50th on this year's list at 32.99 overall, about two points lower than Mississippi (34.86). Arkansas, Texas and Florida are the other three states at the bottom of this year's list.

It's the third straight year Louisiana has ranked at the bottom of this list. Alabama escaped the indignity of being in this year's bottom five, dropping Florida into the group. The other four states at the bottom of the list remained unchanged from 2022. securitysales.com


Deadly surge: Looking for solutions to the cycle of violence
From 2016 to 2021, 1,550 people in Memphis lost their lives due to homicide, and another 362 have died through Dec. 1 of this year. Between 2016 and 2019, juvenile homicides hovered between 15 and 19 a year. In 2020, the number jumped to 40 juvenile homicides - more than double any of the four years prior. That number dropped in 2021 to 33. dailymemphian.com


The Progressive View: Theft is not driving chain stores out of San Francisco

Strong Security Measures Key to Retail Success
Peace of Mind in the Retail Sector: Facility Security

Implementing strong facility security measures, for both products and personnel, is essential to the longevity and success of any business

Product: Organizations have to protect their assets, both tangible and intangible, to produce revenue. From expensive equipment to intellectual property, these valuable assets are the bread and butter of any organization.

Employees: Assets may be the items that bring in revenue, but employees are the wheels of the organization. Without employees, of course, there would be no one to ensure that products are being handled correctly and orders are being carefully fulfilled. Providing a safe environment for employees is foundational to successful business by allowing employees to focus on the tasks at hand, rather than on unnecessary concerns about personal safety.

Community: It is important that there is a synergy between the organization and its neighbors. Installing proper security measures throughout the facility, and therefore reducing the business as a target for criminal activity, increases trust and improves the reputation of the business.

Liability: Implementing proactive facility security can protect an organization against legal consequences and financial burdens.

Compliance: Failure to adhere to these standards can result in legal actions, fines, and reputational damage. Businesses that follow proper security regulations demonstrate their integrity and their commitment to full compliance.

Threats: Security threats are dynamic, and businesses must be proactive in their response. This requires being in a network that keeps you in the loop with new and evolving information about threats and their corresponding security solutions. Being prepared with foundational, state-of-the-art facility security allows businesses to face unexpected challenges with confidence. sapphirerisk.com


The Hayes Report on Loss Prevention
Quarterly - Winter 2023-2024 - Vol. 39 No. 1

Topics: 2023 NRSS - Trends in Shoplifting Statistics - The LP Basics = Increased Profits - Testing For Success - The Bulletin Board

Mark Doyle Talks --- Let's Make 2024 a Great Year

Goodbye 2023, Hello 2024! For many retailers 2023 was a difficult year with a stagnant economy, increased inflation which slowed consumer buying, and increases in organized retail theft, where many of these incidents were displayed in the media. When I look to 2024, I think preparation will be one of the keys to shrinkage improvement. Hopefully you have already begun your YE shrink program review and have started to make adjustments or corrections for 2024. Upon receiving and analyzing your 2023 YE shrink results, final program adjustments should be made, Target/Focus locations selected, and programs promptly rolled out (within 3-4 weeks of receiving YE shrink results). Let's make 2024 an awesome year, and don't forget to follow us on the web, LinkedIn, Facebook and X!

Click here to read the full newsletter


Keeping Stores Open Helps Online Sales Too
New ICSC Study Quantifies How Physical Stores Drive Online Sales

Brick-and-mortar store openings increase online sales by nearly 7 percent; closures drive 11.5 percent drop

NEW YORK, December 12, 2023: Today, ICSC released its latest report, The Halo Effect III: Where the Halo Shines, quantifying the impact of opening or closing physical stores on online sales and retailers' overall performance. The study - the third installment in ICSC's industry-leading research on the halo effect of brick-and-mortar retail on online sales - proves again the power of physical retail by demonstrating that a new store boosts online sales, while a closed store impedes them.

The extensive research, spanning in-store and online sales of 69 retailers and 2,103 individual stores, reveals that opening a store boosts online sales in the trade area surrounding that store by an average of 6.9 percent in the immediate weeks following the store's opening. For emerging, direct-to-consumer (DTC) brands, the benefits are even higher - the correlating halo effect for online sales is 13.9 percent when opening a new store. Conversely, closing stores has an even greater negative impact on retailer performance, resulting in an 11.5 percent drop in sales.

Across nearly all categories, online sales increased following the opening of a store and decreased when a store closed.

Conversely, when closing a location, home stores and department stores took the biggest hit to their online sales, declining by 32.2 percent and 26.1 percent, respectively - emphasizing the importance of a space where consumers can test, browse, and shop for products in those categories especially.

To view The Halo Effect III report, click here. The first report in ICSC's series can be viewed here, and the second report here. icsc.com


Average U.S. Store Size Smallest in 17 years
The American Store Is Shrinking

Evolving shopping habits, rise in e-commerce soften demand for department stores, other big-box space

The average store size in the U.S. is the smallest it's been in at least 17 years, reflecting profound changes in the way Americans now shop. The rise in e-commerce and a growing distaste for giant emporiums are softening demand for department stores and other big-box space.

The end result: Retailers signed leases averaging 3,200 square feet during the first three quarters of 2023, the smallest size since data firm CoStar Group began tracking this metric in 2006.

"A shopping center today looks very different than it did 10 years ago," said Brandon Svec, CoStar's national director of U.S. retail analytics. "The focus is much more on experience, much more on food and beverage."

Despite these changes in retail's landscape, overall demand for store space is robust. Nationwide, the rate of available retail space was 4.8% in the third quarter, the lowest level in the 18 years the data has been tracked by real-estate-services firm CBRE.

Rather than filling sprawling department stores with an array of merchandise, many retailers have started using data from online orders, social-media and foot-traffic analytics to customize smaller inventories to the local population. They have also bolstered store infrastructure to make it easier for customers to pick up and return items bought online.

This allows them to keep fewer items in stores and shrink their footprints to fit into the open-air shopping centers where customers are increasingly shopping.  wsj.com


'Self-Screening Terrorist Stations'
US tries travelers as airport security; DIY indifference
The good news: The U.S. government has a plan for replacing some airport security staff with self-screening terrorist stations.

The bad news: Travelers in the near future could be shucking their shoes, belts and keys while speed-walking through a see-through security tunnel.

Twenty-three years after convincing travelers in the U.S. their lives depended on partially undressing for strangers in public facilities, the Department of Homeland Security wants to see if people will do the same thing on their own.

The innovation is available to members of the biometric-based PreCheck program. Comparing the idea to ordering hamburgers at kiosks, DHS says a pilot for the Screening at Speed Program will be tried at Las Vegas' Reid International Airport next month.

It's not a biometric system. Just automated radiation exams either in tunnels or booths. biometricupdate.com


The Big Wins by Unions in 2023

A sector-by-sector look at this year's work stoppages and what some labor groups have gained

Union workers across America flexed their collective muscle this year, using strikes, strategic walkouts and picket lines large and small to elicit concessions from their employers.

This year proved to be one of the busiest for strikes in recent years. In October, for example, there were 4.5 million days of idleness because of work stoppages nationwide, the most of any month in four decades, according to preliminary data from the U.S. Bureau of Labor Statistics.

The end of the United Auto Workers' strike helped November's jobs report, with roughly 30,000 jobs added back to payrolls. The unemployment rate edged lower to 3.7%, near historic lows. wsj.com


eBay rolls out in-person consignment concierge
eBay is offering its online consignment selling experience in the physical world - via bus.

Report offers a new narrative of how Starbucks landed in union trouble

5 retailers that need a strong finish for the year


Quarterly Results

Lululemon Q3 comp's up 13%, comp stores up 9%, DTC up 18%, net sales up 19%

Inditex (Zara) Q3 sales up 11.1%
 

Senior LP & AP Jobs Market

Executive Director, Asset Protection job posted for CVS Health in Washington, DC
As the Executive Director, Asset Protection Field Operations, you are an experienced proven leader with a deep operational knowledge of all retail store functions that could adversely impact profitability in our most complex and challenging markets. Through extensive field experience, you have an acute awareness of the drivers of shrink, how those change based on different store types, and most importantly how to mitigate them most effectively. You will help create the broader strategy and tactics but will ultimately own the flawless execution of those strategies and the expected financial outcomes. jobs.cvshealth.com