Shoplifting Surges 45% in Chicago
Illinois retailers, communities suffer from shoplifting and robbery spikes
Business owners and taxpayers are paying a big price for retail theft. According to CWBChicago, shoplifting reports have soared 45% this year, making 2024 the worst year for retail theft in the city since at least 2003. Illinois Retail Merchants Association President and CEO Rob Karr told The Center Square that the burglaries and thefts are troubling.

“It continues to create significant financial and psychological harm not only to the people who own and manage the businesses, but to the people who work there. It is a clear factor in hiring difficulties, particularly within the city of Chicago, as people are worried about their own safety,” Karr said.

Capital One Shopping estimated that Illinois lost nearly $3 billion in revenue to theft in 2022. The retail thefts cost Illinois an estimated $185 million in tax revenue. Illinois Gov. J.B. Pritzker signed legislation in 2022 that gave the Illinois Attorney General and other law enforcement agencies more tools against organized retail theft.

Karr and the Illinois Retail Merchants Association supported House Bill 1091, which was also known as the INFORM Act. The law took effect on January 1, 2023.

Despite rising numbers of reported thefts, Karr said there may not be any need for new laws.

“In terms of policy, I think the policies are in place to do this. Could there be tweaks? Maybe, but let’s give the opportunities for the changes that were made to fully take effect,” Karr explained.

Illinois Restaurant Association President and CEO Sam Toia provided The Center Square with a statement, saying, “Crime is an issue here in Chicago and in all urban areas throughout the United States. We would love to see more presence of officers and security guards throughout our 77 communities. Officer presence serves as a strong deterrent."

CWBChicago suggested that increased crime reporting may be contributing to the surge of shoplifting cases in Chicago. In addition, CWB data and police records show that proximity to migrant shelters may be contributing to increases at some stores.  gazette.com


The Theft-Fueled Shopper Exodus
Locking up items to deter shoplifting is pushing shoppers online
Locking up merchandise at drugstores and discount retailers hasn't curbed retail theft but is driving frustrated consumers to shop online more, retail experts tell Axios.

Why it matters: Retail crime is eating into retailers' profits and high theft rates are also leading to a rise in store closures. Secured cases can cause sales to drop 15% to 25%, Joe Budano, CEO of anti-theft technology company Indyme, previously told Axios.

The big picture: Aisles full of locked plexiglass cases are common at many CVS and Walgreens stores where consumers have to wait for an employee to unlock them. Target, Walmart, Dollar General and other retailers have also pulled back on self-checkout to deter shoplifting.

Amazon CEO Andy Jassy spoke of the "speed and ease" of ordering online versus walking into pharmacies on a call with investors last week. "It's a pretty tough experience with how much is locked behind cabinets, where you have to press a button to get somebody to come out and open the cabinets for you," Jassy said.

CVS spokesperson Amy Thibault told Axios that the chain uses "a variety of different measures to deter or prevent theft and locking a product is a measure of last resort." "Different products experience different theft rates, depending on store location and other factors, and our product protection decisions are data driven," Thibault said.

But there is some debate about how deep the problem is and if retailers are using theft as a scapegoat for other challenges.  axios.com


Retail Theft Bills Finally Advance After Month of Stalling
California lawmakers move forward with stalled set of retail theft bills
The bills had been stalled for more than a month after Democratic leaders unsuccessfully tried to use it as a bargaining chip to negotiate the crime-related initiative off of the November ballot. Lawmakers from both sides of the aisle seemed relieved the bills were making progress again.

"I have met with many groups in my community from police chiefs, small business owners who really need us to step up on this issue and I'm so proud we're pushing this package forward," said State Sen. Susan Rubio, D- West Covina.

In the state senate, debate was brief. Some Democrats were divided over one of the bills that creates a new crime for organized retail thieves.

"This measure and others like it are making our communities unsafe because these measures deepen mass incarceration," said State Sen. Lola Smallwood-Cuevas, D- Los Angeles.

"I firmly believe that our communities no matter if you live in the Humboldt coast or down in Temecula- your community will be safer based off of the action that was taken by the legislature," said Senate Pro Tem Mike McGuire after the votes.

Republicans are bracing for Democrats to use the bills to campaign against the ballot initiative now known as Proposition 36. The initiative asks Californians to raise penalties for repeat thieves and fentanyl dealers.

Lawmakers are expected to send the bills to the governor's desk on Monday. kcra.com

   RELATED: Watch out Prop 36


Retail Security Tax Credit Hopes to Push Stores to Invest in Security
What Retailers Need to Know About Using New York’s Retail Security Tax Credit
On April 20, 2024, the New York State legislature passed its annual budget measure for fiscal year 2025, which addresses multiple priorities and enacts key proposals from Governor Kathy Hochul. Of significance to New York business owners, workers and consumers, the measure includes a new Retail Security Tax Credit, which for tax years 2024 and 2025 will provide assistance to businesses for investing in necessary equipment to protect their employees and merchandise.

The introduction of the Retail Security Tax Credit is a significant step toward addressing the growing issue of retail theft in New York State. Each year, retailers throughout the state of New York lose around $4.4 billion from various kinds of thefts. The financial burden of theft on retailers is substantial, and this tax credit aims to alleviate some of that pressure by incentivizing businesses to invest in robust security measures. By doing so, it not only helps protect the merchandise but also ensures the safety of employees and customers.

Moreover, the comprehensive approach taken by Gov. Hochul’s administration, which includes increased penalties for offenders and enhanced support for law enforcement, underscores the seriousness with which the state is tackling organized retail crime. The budget agreement includes the new tax credit among Gov. Hochul’s five-point policy plan aimed at creating more secure environments for both businesses and consumers.

To be eligible for this tax credit, a business must meet these requirements: retailtouchpoints.com


One of the Top Products for ORC?
Here's why thieves are stealing Lego sets

Legos are popular among thieves because of their street value. The toys are easy to sell and hard to trace.

Police say Legos are being targeted by both organized crime rings and individual shoplifters. Often, thieves steal to feed a drug habit. “They need to get cash every day to get their next fix,” said Chief Andrew Shearer of the Springfield Police Department. “You have to turn and burn and steal things to make cash to buy the drugs.”

Legos are popular among thieves because of their street value. The toys are easy to sell and hard to trace. Police reports showed stolen Lego sets listed on Facebook Marketplace and other online platforms. Often, they can be resold at close to the retail price, if in mint condition and unopened.

Some were sophisticated operations involving criminals who swapped out bar codes, while other criminals just walked out the front door.

Many large retailers lock up their Lego sets or use anti-theft devices, such as spider wrap. Spider wrap prevents thieves from opening Lego sets and removing the pieces. It also contains a device that can be detected by monitors located near the store entrance or exit in the event someone tries to steal the box of Legos.

Consumers can help too. Deeply discounted or suspicious-looking Lego sets found online or elsewhere are probably stolen, so don’t buy them.  kgw.com


Everyday Americans Turn Toward Theft
Retail theft on the rise: Here’s why Americans have resorted to shoplifting to make ends meet
More than one in five Americans has resorted to shoplifting just to make ends meet.

“Lots of people are struggling in the face of still-rising prices, and they’re going to somewhat desperate measures to help them get by,” noted Matt Schulz, chief credit analyst for LendingTree, an online lending marketplace which recently quizzed shoppers about their patterns of theft. “With inflation stubbornly sticking around, that’s not likely to change soon.”

LendingTree’s data – the result of a survey of 2,000 U.S. consumers ages 18 to 78 - shows that 23% of Americans have shoplifted, and 90% of recent shoplifters say they were motivated to do so because of inflation and the current economy.

The study showed that 52% of shoplifters were older than 16 at the time of the crime and 55% of thieves say they hid the items on their bodies. Meanwhile, 36% hid the items in purses or bags and 25% carried them out in plain sight. Millennials (30%) and those without children (30%) are the most likely groups to utilize the latter bold strategy.

And Schulz says what they’re shoplifting tells you a lot about why they’re shoplifting: “These generally aren’t thrill-seekers looking for an adrenaline rush or a big score,” he added. “These folks are taking things they really, really need, like food, clothing and even makeup.”  silive.com


Another Example of the Youth Contributing to ORC Surge
Kids aged 11, 13 among suspects arrested for "violent and prolific" organized retail crime in San Francisco
Two children aged 11 and 13 years old were among a group of suspects in what police called "violent and prolific" organized retail crime that included dozens of smash-and-grab robberies in San Francisco, police said Thursday.

Some of the retail thefts involved violence against store employees, the San Francisco Police Department said in a statement. In most incidents, eight to 10 suspects would rush in and ransack the stores, at times breaking glass display cases to steal items, police said.

In several cases, police said suspects would force their way into stores that were closed but still occupied by workers. The suspects would often go behind the counters to confront employees, steal high-value items or or try to take cash from the register, police said.  cbsnews.com


Connecticut: Lawmakers discuss statewide efforts against credit card skimming

72-hour wait period and other new gun laws go into effect in Maine
 

Big Lots is on the Brink - 315 Closures Possible
Is Bargain Hunting Enough To Keep Big Lots Afloat?
Big Lots is celebrating National Bargain Hunting Week from Aug. 12-18, 2024, with daily “Bargain of the Day” offers featuring discounts of 20% to 75% on items like furniture, pet accessories, and personal care products. The event coincides with National Smile Week, a connection inspired by Debbie Keri-Brown, who created National Bargain Hunting Week to reflect the joy of finding deals. Big Lots aims to attract savvy shoppers with new closeouts, overstocks, and liquidations.

Holding this promotion will hopefully prove valuable to Big Lots’ branding and relevance and help bring it back to the forefront of consumers’ minds as a premiere discount retailer.

But Big Lots is on the verge of bankruptcy. The retailer is struggling financially and originally planned to close 35 to 40 stores this year amid concerns about a potential bankruptcy filing. Now, according to a regulatory filing, the company has increased this number to as many as 315 stores across the country.

“While the majority of our stores are profitable, we have made the difficult decision to close certain underperforming stores,” a company spokesperson said, as reported by CBS News.  retailwire.com


Another Business Facing Political Backlash
With the election only a few months away, tensions are high

Dunkin' Donuts boycott launched by MAGA influencers. Here's what to know
The boycott started after Chris Pavlovski, CEO of Rumble Video, posted to the social media site X on Wednesday what he claimed were emails from Inspire Brands/Dunkin' Donuts. Inspire Brands acquired Dunkin' Donuts in December 2020.

Pavolovski wrote on X that "Inspire Brands / Dunkin Donuts didn’t want to advertise on Rumble because of “right-wing culture.” He said his response was, "No, we don't discriminate. All cultures are welcome on Rumble."

The alleged response from Inspire Brands/Dunkin' Donuts states, "We are open to continuing discussion as the site evolves! I am sorry to share that because I want to help."  yahoo.com


The End of the Fast Food Era?
Fast Food and Restaurant Price Wars Continue On
The fast-food price wars are continuing to rise as “restaurant CEOs have become obsessed with the word “value” in explaining to investors why their sales lagged this quarter while sharing plans to revive traffic in the coming months,” according to CNBC.

The dining out landscape is shifting as fast food’s dominance diminishes. In New York City, the cost of fast food meals has surged to nearly $14, prompting chain restaurants to offer more attractive promotions. For example, Chili’s has introduced a “3 for Me” combo for $10.99, and other chains like Applebee’s, Red Lobster, and Outback Steakhouse are promoting value-driven deals to compete with rising fast-food prices.  retailwire.com


This summer’s stubborn COVID wave continues
After rising for three months, the COVID positivity rate has reached 14.3%
 
Ace Hardware’s new experiential store model to be ‘immersive shopping experience that you can’t find anywhere else’

Last week's #1 article --

Theft & Fraud Top Challenges for Food Retailers
Study reveals theft and fraud remain top challenges for food retailers
As food retailers continue to grapple with challenges that impact the bottom line, a study conducted by Coresight Research found that theft and fraud remain top concerns for food retailers.

Coresight Research said that, according to the Food Industry Association, 85% of food retailers report theft or fraud (shrink) as the top threat that negatively impacted their businesses last year. Consumers have also noticed an uptick in theft. Coresight Research found that 27% of consumers report they have personally witnessed shoplifting as of May 2024, compared with just 18% in July 2023.

However, extra security measures could lead to shoppers taking their business to another store, the report says.

The Coresight Research study indicated that a significant portion of U.S. shoppers are deterred by aggressive security measures, such as locked items, which can push them toward alternative shopping locations or channels - with 23% saying they would shop at another store and 25% saying they would just shop online if a retailer put in security measures like locking up products or moving them into cases.

The report says that retail shrink through theft continues to be a persistent and intensifying headwind for retailers globally. Shoplifting and organized crime negatively impact retail margins and, as such, have become a growing focus for the sector. thepacker.com