Striking the Right Balance Between LP & Shopper Experience
At What Point Does Loss Prevention Cross Into Sales Prevention?
Earlier this month, the Council on Criminal Justice (CCJ) released statistics on crime rates across the country, which quantified the rising concern retailers have been facing regarding shoplifting. Despite falling rates of violent crime across the country to either at or below pre-pandemic levels, one statistic stands out: Retail theft is on the rise at an alarming rate, up 24% in the first half of the year compared to the same period in 2023. In May of this year, the CCJ reported the highest monthly crime rate since before 2018 for shoplifting, as depicted in the below chart.

Faced with this, some companies are even resorting to extreme tactics to stop the bleeding of profitability. Retailers are currently weighing the tradeoffs between being customer-centric and combating rising rates of shoplifting across the country.

Locked cases have been installed across several major chains, including Walgreens, Target, and Walmart, to encase basic items ranging from pharmacy or personal care items to apparel and accessories such as socks and underwear.

Many of those same retailers are also walking back self-checkout initiatives that have presented opportunities for theft. Additionally, some mall properties have hired security staff at entrances to check identification and enforce adult supervision for anyone under the age of 18.

Another strategy some luxury retailers have begun to test, in part to combat theft, is changing to appointment-only shopping models. Most recently, a Sak’s location in San Francisco swapped to appointment-only availability, citing crime as one of the factors in this decision.

While these tactics are essential for reducing losses, they often come with a tradeoff that can impact the overall customer experience at the expense of sales. These measures can create a perception of distrust among honest customers, potentially leading to a decline in sales.

In the face of surmounting obstacles, what can retailers truly do? To counterbalance some of the negatives, a ramp up in customer service and staffing can help. Adding more staff across the store will increase expenses, of course, but a higher presence of employees can, with proper training, improve customer service and therefore increase sales, as well as be a shoplifting deterrent.  retailwire.com


Canada's Retail Theft Fight is Working
Anti-theft efforts making impact in Winnipeg, say retailers who still hope for stronger penalties

'Shoplifters will think twice if ... they're not just going to be slapped on the hand'

Manitoba's recent efforts to curb retail theft are working, by many accounts, and some businesses are hoping for more permanent changes. Winnipeg police warned last December of a sharp rise in retail theft — sometimes involving violence — and boosted officer presence in retail areas.

In May, the provincial government announced it would pay for police officers in Winnipeg to work overtime to target parts of the city where retail theft was most rampant.

Munther Zeid, whose family owns the local Food Fare chain of grocery stores, says shoplifting incidents have gone down slightly, most notably those committed by organized thieves who steal not to feed themselves but to resell goods for money.

Police officers, sometimes in uniform and sometimes not, have visited Food Fare stores regularly and word of the increased police presence has served as a deterrent to some thieves, Zeid said. The head of the Winnipeg Chamber of Commerce also feels recent efforts have worked.

"The increased presence of the police officers is serving as a deterrent to those that would potentially be looking to do theft," chamber president Loren Remillard said.

Police released statistics last month on the program's impact over the first several weeks. There were 203 arrests. There were 31 tickets issued for offences such as trespassing.

"We're trying to change the narrative that (shoplifters) can just walk out of the store and nothing's going to happen," McKinnon said. Zeid would like to see stronger penalties for shoplifters.  cbc.ca


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

RELATED: New Survey Shows Why Shoplifting Has Become So Common


Violence Crime Drops 25% in Some Cities
New data shows violent crime dropping sharply in major U.S. cities
New preliminary data from major U.S. cities shows a sharp drop in violent crime in the first half of the year — more than 25% in some communities — as the COVID-era crime wave recedes.

By the numbers: An Axios analysis of data from the Major Cities Chiefs Association found an overall 6% decline in violent crime among 69 cities during the first six months of 2024 compared to the same period last year.

54 of the 69 major cities in the report saw drops in violent crime — defined as homicide, rape, robbery and aggravated assault — in the first half of 2024, according to the Axios review.

Columbus, Ohio, experienced the largest percentage decline in violent crime in the nation, with a massive 41% drop so far in 2024. Omaha, Nebraska, was second with a 30% decrease. Miami and Washington, D.C., so far, have seen 29% declines in violent crime.

Austin, Texas, saw a 28% drop, followed by New Orleans with a 26% decrease. Both cities have been under fire for rising crime rates in recent years.

The intrigue: The Axios review also found that the number of homicides in the 69 reported cities fell by more than 17% during the first half of 2024 compared to the last period last year.

Boston experienced a dramatic 78% drop in homicides. Philadelphia was among others that saw a big fall in homicides, with a 42% decrease in 2024. axios.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


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Stopping Safety Incidents Before They Snowball Out of Control
How Companies Can Use the Safety Pyramid to Improve Their Culture

The key to translating theory into action is a multipronged strategy to target bottom-of-pyramid incidents before they snowball.

For over 90 years, Herbert Henrich’s “safety pyramid” has been a cornerstone of safety management. It helps safety professionals visualize various safety incidents based on their frequency and severity.

The high-level thinking: at many organizations, the most severe incidents (i.e., workplace fatalities) are often preceded by thousands of near misses and generally unsafe behaviors. By targeting these latter cases early, leaders can avoid worst-case scenarios.

The safety pyramid groups incidents into five categories, starting with the most frequent and least severe occurrences:

1. Unsafe behaviors and hazards: These are incidents that could happen every day, from doing construction work without PPE to improperly using a forklift on a crowded job site.

2. Near misses: These are incidents in which a worker narrowly avoided injury. For instance, a worker might have tripped over an extension cord but managed not to fall.

3. Medical-only incidents: These include injuries like small cuts or bruises, which might require medical attention but don’t result in lost workdays.

4. Lost time incidents: These include injuries like fractures or broken limbs, which often require lost workdays or significant medical treatment.

5. Serious injuries or fatalities: These are the most severe incidents; they result in permanent disability or death. ehstoday.com


Total Retail Sales Up 2.1% YoY Through July
NRF: Retail sales inch up in July, boosted by back-to-school & college spending
Core retail sales (excluding restaurants, automobiles and gasoline) edged up 0.95% month-over-month in July and 1.69% year-over-year, according to the CNBC/NRF Retail Monitor, powered by Affinity Solutions. That compared with increases of 0.3% month over month and 3.07% year over year in June.

Total retail sales (including restaurants but excluding automobiles and gasoline) were up 0.74% month over month in July and 0.92% year-over-year in July, according to the Retail Monitor.

For the first seven months of the year, total sales increased 2.1% year-over-year and core sales were up 2.4%. chainstoreage.com
 

LL Flooring files for bankruptcy with plans to close 94 stores

The company is pursuing a sale of its business and said it has a commitment for $130 million in debtor-in-possession financing from existing lenders.

LL Flooring on Sunday filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The specialty retailer has retained Hilco to support the company with closing sales at 94 locations in 31 states. It plans to keep more than 300 stores open, according to an announcement.  retaildive.com

 
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