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Mitigating retail violence

By Scott Thomas - National Director, Signature Brands at Genetec

Rising retail violence is top of mind for retailers worldwide. Since re-opening after pandemic lockdowns, retailers have seen incidents of aggression increase across the board. This includes violence related to theft or other crimes such as active shooter events. In some parts of the country, the danger has increased so dramatically some major retail and hospitality chains are closing locations.

Major municipalities have also seen a reduction in law enforcement personnel. With reduced officer availability, response to property crimes often decreases. With little or no deterrence, criminals may feel emboldened and the number and frequency of theft incidents increases significantly.

2022 was the most violent year on record for retail (confirmed here by D&D Daily) While companies continue to combat organized retail crime (ORC) theft and cybersecurity, it's workplace violence that is impacting operations and staffing the most.

Recently, Loss Prevention Magazine found that 60 percent of respondents had witnessed an incident of workplace violence within their company in the past year.

Types of retail violence

Many kinds of violent incidents impact retailers. Three of the most common are violence that escalates from theft, spontaneous violence (often linked to mental health issues), and violent crimes occurring in the surrounding neighborhood.

No customer issue is worth putting an employee's safety at risk. Many retailers are now instructing staff not to intervene personally if they see shoplifters pushing a cart full of unpaid merchandise out the door. While these thefts may lead to significant losses, they can escalate quickly with worse consequences. If the thief has a gun or another weapon on their person, they can be deadly.

In certain neighborhoods, violent crimes such as assault, robbery, shootings, or carjackings have also increased in recent years. Though the retailer may not be directly targeted or even implicated, these incidents have an impact. If employees don't feel safe, they will seek other employment. When customers are concerned about violence in the neighborhood, they won't visit the store.

Impacts to retailers | Practical solutions to improve safety and security | Leveraging technology to improve safety: Read Full Article Here
 

Summer 2023 Weekend Shooting Analysis
America's Crime & Violence Surge Continues

160 Shootings - 39 Killed - 160 Injured in 15 Big Cities Over Holiday Weekend
Big city gun violence fatalities dropped 39% from 2022's Memorial Day Weekend

The D&D Daily's Big City Weekend Violence Study - Memorial Day to Labor Day

The Daily's annual study analyzes weekend shooting data in 15 major U.S. cities from Memorial Day Weekend through Labor Day Weekend 2023

Starting this past Memorial Day Weekend, the D&D Daily compiled and analyzed data from 15 major U.S. cities to get a snapshot of summer gun violence.

Over Memorial Day Weekend 2023, from May 26th through May 29th, there were 160 shootings recorded in these 15 big cities, resulting in 39 deaths and 160 injuries.

The data shows that big city shootings fell 5% from last year (168 shootings reported over the same weekend in 2022) and injuries dropped 2% (163 injuries reported over the same weekend in 2022). But big city gun violence fatalities fell 39% in 2023, with 64 deaths reported in 2022 and 39 deaths reported this year.

The D&D Daily will continue to track this data throughout the summer to capture the weekend violence trend in our nation's big cities as warm weather typically brings about more crime and violence.

Click here to see the list of incidents per city and follow along each week as this spreadsheet will be updated every Monday. docs.google.com

Read more coverage about America's crime and violence surge in the section directly below
 

The CEO ORC Chorus is Growing

Retailers, Law Enforcement and Lawmakers Issue Chorus of ORC Warnings
Experts say ORC is fueled in part by weak penalties & lax enforcement

Not just shoplifting: Here's why companies say retail theft is such a big deal

Many retailers say retail theft is on the rise and is leading to lower profits.

For several years, the terms shrink, retail crime and organized retail theft have echoed from the mouths of politicians, police officers, trade groups and the country's most prominent retail executives.

Politicians and police departments have sounded the alarm about rising retail theft, and are calling for stricter enforcement and prosecution to fight it.

Trade groups and retailers have griped about shrink's effect on profits, and warned it could lead to store closures, employee-retention issues, safety concerns and reduced investment returns over time.

All of these parties have urged passage of legislation they say would better equip law enforcement officials to crack down on the growing trend and catch those responsible.

Which retailers have cited shrink and retail theft as a problem?

In May, Target, Dollar Tree, Home Depot, T.J. Maxx, Kohl's and Foot Locker all cited shrink, retail theft or both as a reason for lower profits or hits to gross margins. In the past, Walmart, Best Buy, Walgreens, Lowes and CVS have all cited shrink and retail theft as an issue.

After the Covid pandemic led to widespread store closures and lockdowns, e-commerce became the primary way consumers shopped, which caused organized retail theft to increase, some experts said.

Organized retail theft has also increased because it can be low risk relative to other criminal ventures, such as armed robbery or drug dealing.

For example, the crime of petit larceny is charged in New York when an individual steals less than $1,000 worth of goods. If convicted, the defendant faces up to a year in jail. But they can also receive probation, community service and fines, in addition to restitution.

Further, individuals charged with petit larceny in New York are almost always automatically released after their arrest because of recent criminal justice reforms to the state's bail law.

Supervisory Special Agent John Willis, who is part of an organized retail theft task force out of the Homeland Security Investigations Charlotte field office, said individuals he has arrested for the practice have cited the low-risk nature of the offense as the reason for committing it. cnbc.com

RELATED: Former Home Depot CEO Bob Nardelli on retail shrinkage & organized theft


Ulta CEO David Kimbell "Personally Heavily Involved to Help Find ORC Solutions"
Ulta Working To Combat Surging Retail Theft As Q1 Sales Rise 12.3%
The company is implementing additional mitigation strategies in its stores - including placing fragrances in locked cabinets - to combat organized retail theft that is expected to slightly reduce its operating margins for the full year.

In their Q1 results press release and webcast they stated:

"As a percentage of net sales, gross profit decreased to 40.0% compared to 40.1% in the first quarter of fiscal 2022, primarily due to higher inventory shrink."

"Similar to what other retailers have shared, we continued to see pressure from inventory shrink this quarter," Kimbell said. "While shrink is the result of various factors, theft - specifically organized retail crime or ORC - is an increasingly concerning challenge, especially as we've seen a rise in violence and aggression during these incidents."

As a result of inventory shrinkage, Ulta is lowering its full fiscal year 2023 operating margin outlook from an initial target of 14.7%-15% to 14.5%-14.8%. At the same time, the firm is raising its net sales target for 2023 to $11bn-$11.1bn, versus an earlier estimate of $10.95bn-$11.05bn.

"ORC impacts all of our stakeholders, guests, associates, brand partners, investors and communities, and it will not be solved by retailers alone," Kimbell said.

Noting its first priority is the safety and well-being of its associates and guests, Ulta says it is committed to ensuring a safe work environment and is investing in fixtures, training, support structures and increased staffing and security to "aggressively" address the ORC trend, which is impacting major retailers across the US including Target Corp., Walmart Inc. and Kohl's.

Moving into 2023, Ulta expected the problem to moderate with mitigation tactics it put in place, but the trend has gotten worse and the company expects it to continue throughout the year.

Kimbell sees the issue as a "macro" problem that requires a macro solution. "I'm personally heavily involved in it to help try to find solutions, both for our business and hopefully contribute to some answers across retail."

Meanwhile, Ulta, which operates 1,359 stores, is taking new actions, including placing fragrance - among targeted, higher-priced merchandise - in locked fragrance cabinets.

Additionally, Ulta is investing in security guards in certain locations. informa.com


Retailers Say No to Unsupervised Teens As Crime & Violence Spikes
Businesses Saying No to Unsupervised Teens Amid Crime Surge

The storied teenage tradition of the mall hangout could be coming to an end.

Malls, movie theaters and other businesses around the country are increasingly imposing rules requiring teenagers to be accompanied by adult chaperones, The Associated Press reported Sunday (May 28).

The reason? Bad behavior among teens, some of it inspired by TikTok. The report noted that these policies have many fans, who say these rules prevent disruptions to business and foster a safer environment for shoppers.

It's a change that's happening as many retailers say they're dealing with an uptick in crime, particularly theft.

For example, Ulta Beauty CEO Dave Kimbell said last week he was worried about an escalation of violence and aggressive behavior seen during organized retail thefts.

However, critics of the new parental controls say they can stunt social development in teenagers, who had already been spending a lot of time online thanks to the pandemic.

"We have to allow spaces for young people to be independent and develop socially beyond the context of the virtual digital environment," Jake Bjorseth, head of trndsttrs, a Gen Z-focused advertising agency, told the AP.

He warned that the chaperone rules could backfire by causing kids to spend even more time in digital spaces and less time in physical hangouts.

But Marshal Cohen, chief industry adviser at market research firm Circana, argued that these policies are also about shifting to a post-pandemic consumer environment, marked by a sharp drop in spending by shoppers ages 18-24. pymnts.com  apnews.com


Walgreens Designs New Chicago Store to be a Fortress Against Theft
New anti-theft Walgreens store in has just 2 aisles of touchable merchandise
CHICAGO - In what was once a typical Walgreens, there are now just two short aisles of so-called "essentials" where "customers may shop for themselves." If you want anything else-a bottle of booze, a deodorant brand deemed "non-essential"-you'll need to order it at a kiosk and pick it up at the counter.

After undergoing a few weeks of construction, the store reopened on Tuesday. "This redesigned store will have the latest in e-commerce offerings to increase customer service, mitigate theft, and increase safety for our customers and employees," the company said in a pre-opening statement.

And, boy, are there a lot of employees. Three greet you inside the front door, essentially asking why you're there. The pharmacy is in the back and to the left, equipped with a fancy new kiosk system of its own. An employee will teach you how to use it.

To the right, gated by anti-shoplifting devices to protect the inventory, two rows of low-rise shelves offer a very limited selection of those so-called "essentials." Unlike the tall shelves you're used to seeing in your neighborhood Walgreens, this store's shelves are no more than five feet tall, giving everyone a clear look at what everyone else is up to.

When we visited on Wednesday morning, two employees were dedicated to the "shop for yourself" section. But if you want anything other than the very basic of basics, you'll need to use one of the iPad-like "kiosks," where a sign invites you to "Let us do the shopping" from the store's "full selection."

The company's pre-opening letter said the new concept is "aimed at bringing the community a greater convenience and safety." cwbchicago.com


New Zealand PM Responds to Retail Crime Spike With $4,000 Subsidies
$11m for 3000 more fog cannons by end of year, PM announces
An extra $11 million will help extend the Government's "incredibly popular" fog cannon subsidy scheme for retailers, Prime Minister Chris Hipkins has announced.

Hipkins announced the new measures at his post-Cabinet media conference today. The PM also signalled additional initiatives to address crime in the coming weeks.

"Small retailers continue to tell us that the scheme is working well and that they feel safer knowing that they are better protected against things like ram raids and burglary.

"The retail crime spike that we have been experiencing is utterly unacceptable. Those business owners and their employees experiencing the spike first-hand should not have to be fearful when they go to work.

The Government opened applications for the $4000 subsidy in February, and the PM said demand had increased significantly in the past month. 1news.co.nz


Another State Pushing for Stiffer Retail Theft Penalties
Alabama House addresses organized retail theft this week
The Alabama House of Representatives met on Wednesday. The first item on the special-order calendar is legislation levying heavy criminal penalties on persons engaged in organized retail theft.

Senate Bill 206 (SB206) is sponsored by State Senator Clyde Chambliss (R-Prattville). SB206 is being carried in the House of State by Representative Allen Treadaway (R-Morris). Rep. Treadaway is the sponsor of the House of Representatives version of the bill.

Treadway warned in committee that without stiffer penalties on organized retail theft, more stores, including Wal-Mart and Target, will close. Treadaway said that organized teams of thieves are systematically preying on the state's retailers.

This legislation is supported by the Alabama Retail Association. altoday.com


Another Seattle Retailer Closes Over Crime
Bartell Drugs' Ballard location to close next month
Bartell Drugs will close one of its two Ballard locations on June 8 over an array of concerns including the store's financial performance. The store is the third Bartell location in Seattle to close in less than a year.

While Rite Aid didn't specify crime as a factor for closure, Ballard businesses, including Bartell, cited concerns about crimes such as shoplifting and assault, leading to financial losses and employees feeling unsafe in a 2020 survey.

Crime rates in Ballard have decreased since, according to data from Seattle Police Department. The total number of offenses declined from 2,901 in 2020 to 2,750 in 2022, data shows. seattletimes.com


Seattle store blames 'far left' city council after 11 break-ins
A Seattle business owner blamed the city council for enabling criminals as his family's two stores struggle to stay afloat following 11 break-ins last year.

SF Mayor Breed's Budget Adds 440 Officers & 22 SFPD New Civilian Positions
Wages for officers, paramedics, EMTs and 911 dispatchers are also set to increase. Under the current proposal, SFPD's budget will increase by 8.8% from the current year, to $776.8 million.

Here Are The UK's Biggest Shoplifting Hotspots

UK: Steak, coffee and cheese locked up as shoplifting rises

New Zealand: 'Going toward wrong direction': New Zealand sees spike in retail crime

Auditing Worker Safety at Dollar General
Dollar General investors vote to probe worker safety, after years of complaints

Dollar General stores have been cited by OSHA and local authorities for safety hazards for years.

Dollar General workers who have expressed concerns about their safety for years have finally gotten the attention of company shareholders.

Shareholders have approved a proposal that asks for an audit of worker safety at Dollar General stores, according to preliminary results of a proxy vote announced at the retailer's annual meeting on Wednesday. The proposal asks for a third-party audit of how Dollar General's policies and their implementation at stores affects workers' well-being.

Domini US Impact Equity Fund, which says on its website that it uses its investments "to create a more fair and sustainable world," presented the proposal at the annual meeting. Outside the site of the meeting in Goodlettsville, Tennessee, Dollar General workers from around the US demonstrated in support of the proposal and asked the company to do more to protect them at work.

A Dollar General spokesperson confirmed that the audit was approved according to preliminary results. "We encourage employees to share their feedback through the many Company-provided channels so that we can listen and work together to address concerns and challenges, as well as to celebrate successes," the spokesperson said.

Employees and shoppers say that many of Dollar General's stores are understaffed and overrun with merchandise. The problem has gotten so bad at some stores that local fire marshals have forced them to close because unpacked merchandise is blocking fire exit paths. Employees have also gotten injured on the job, while others have been murdered while working at the stores, CNN reported.

Safety hazards at Dollar General stores have also gotten the attention of the Occupational Safety and Health Administration, or OSHA, which has proposed fines on Dollar General of $21 million since 2017. The company's violations are severe and frequent enough that Dollar General earned a "severe violator" designation from OSHA in March. businessinsider.com  cnbc.com


14-Day Boycott Over "PRIDE" & LGBTO-Friendly Clothing Line Roll-Out Cost 17% of Stock Price
Target's stock loses $12.7B, sinks to lowest level since 2020 over boycotts
Target's stock has lost a whopping $12.7 billion over the past two weeks, hitting its lowest levels in nearly three years as the "cheap chic" discount retailer continues to face backlash over LGBTQ-friendly kids clothing.

Shares went from $160.96 on eve of boycott to $133.42 in early Wednesday trades after dropping for eight straight sessions - the stock's longest losing streak since November 2018. That's off 17% from two weeks earlier on May 18.

As a result of the incessant backlash, the retailer said it would remove items from the "PRIDE" collection - citing "volatile circumstances" and "significant confrontational behavior" - but did not specify which ones.

Target has also announced that would move its Pride section to the back of its stores in some Southern outposts after displays were knocked over by protestors who also confronted workers. nypost.com


How Walmart and the 'water bed effect' raise food prices at smaller groceries

Patagonia accuses Nordstrom of selling fake Patagonia merch at its Rack stores


Quarterly Results

Ulta Beauty Q1 comp's up 9.3%, net sales up 12.3%

Nordstrom Q1 Nordstrom banner net sales down 11.4%, Rack down 11.9%, net sales down 11.6%
 

Senior LP & AP Jobs Market

Manager Organized Retail Crime Investigations job posted for Rite Aid in Los Angeles, CA
The primary purpose of this position is to identify and investigate all aspects of organized retail crime in the stores/geographic area assigned, and to assist in conducting special high-level investigations as needed. Develops strategies to reduce organized retail criminal activity. With a focus on investigating organized retail crime, this position helps to identify and develop appropriate reporting methods and mechanisms to maximize efficiencies and best practices within the area of responsibility and across the asset protection organization. careers-riteaid.icims.com