NRF & RILA Applaud 'Combating Organized Retail Crime Act of 2022'

NRF Statement on Senate ORC Legislation

WASHINGTON – The National Retail Federation today issued the following statement from Senior Vice President of Government Relations David French regarding the Senate introduction of the Combating Organized Retail Crime Act of 2022.

“We applaud Senators Grassley and Cortez Masto for introducing the Combating Organized Retail Crime Act of 2022. Organized Retail Crime (ORC) is a multibillion-dollar problem impacting the retail industry and jeopardizing the safety of associates and customers. According to NRF’s 2022 National Retail Security Survey, retailers reported a 26.5% increase in ORC, on average. Perhaps more concerning, retailers also noted an increase in violence and aggression associated with ORC over the past year.

“The Combating Organized Retail Crime Act of 2022 will establish a new Organized Retail Crime Coordination Center to align counter-ORC activities nationally and internationally by developing a national-level ORC intelligence perspective, facilitating information sharing and cross-agency investigations, and serving as a center of expertise for training and technical assistance. This coordination is a critical step for retailers to effectively combat these criminal activities.” nrf.com

Retailers Welcome Bill to Combat Organized Retail Crime

Today Senator Grassley (R-IA) introduced the Combating Organized Retail Crime Act, legislation that would create a federal organized retail crime task force. The Retail Industry Leaders Association (RILA) Senior Executive Vice President, Public Affairs Michael Hanson issued the following statement in response.

“The alarming rise in organized retail crime that we are seeing in communities across the country is putting employees and customers in harms’ way. The legislation Senator Grassley introduced today is a crucial step in tackling this growing, complex problem. By establishing a federal task force to help track and prosecute criminals, we can increase collaboration and transparency among stakeholders, and help curb what has become a $69 billion problem for American businesses. Homeland Security has tracked the proceeds from selling stolen goods online to other nefarious criminal activities such as human trafficking, gun smuggling, narcotics and terrorism.

“Retailers have strongly supported the INFORM Consumers Act, which would bring much needed transparency by requiring online marketplaces like Amazon to verify sellers, making it harder for criminal elements to hide behind screennames and bogus business accounts to peddle stolen goods.

“It is vital that the federal government focus attention on this growing problem. Bolstering online transparency with a task force that aligns the resources of the federal government would be a welcome 1-2 punch to addressing this threat to our stores and communities.” rila.org

Progressive DAs Fueling ORC Crisis?
Crime Floods American Cities, Where Allowed
America is experiencing a major increase in crime. Upon a murder explosion that started in 2020, other forms of criminality have metastasized too over the past year or so, particularly robberies, carjacking, burglaries, and theft. Police agencies across the country report perpetrators becoming more brazen and systematic.

The wildfire of villainy is fueled by an atmosphere of lawlessness and diminished accountability, but it doesn’t spread indiscriminately—many areas have successfully resisted it.

Of the 150 law enforcement agencies that submitted data to the FBI for the first half of 2022, about 60 percent reported increases in property crimes. Nearly one-third reported upswings in murder and robbery greater than 20% and almost a quarter reported increases in burglary and theft exceeding 20%, compared to the same period a year earlier.

Retailers reported a 26 percent increase in organized theft in 2021, according to a survey by the NRF. More than 70% said the risk of theft, organized retail crime, and violence toward personnel increased last year. More than 80% of the respondents said organized theft has gotten more aggressive and violent.

De-Incarceration

Large swaths of America, particularly in urban centers, have been influenced by an ideology that’s nihilistic toward the country’s existing criminal justice institutions. The most prominent factor has been the election of district attorneys espousing a de-incarceration agenda who then refuse to prosecute whole swaths of crimes. Another factor has been the passing of state and local criminal justice reforms that lower penalties for crimes so much that in many cases the punishment becomes ineffectual as a deterrent.

Mass Theft & Progressive Reforms

Organized retail theft has also been associated with the progressive reforms. “You’ve got two cities like San Francisco and Philadelphia ... You’re seeing huge increases in property crimes and retail theft crimes, because there in both cities you have a prosecutor, a police chief, and a mayor who are relatively lenient on this sort of stuff. We’re allowing retail theft to go largely unpunished. And as a result, you are getting large organized retail theft rings that are working those cities.” theepochtimes.com

Stores Walking a Tightrope Between Theft Prevention & In-Store Experience
Retailers take a heavy-handed approach to combat theft

Retailers are struggling to find a middle ground between preventing theft and improving the in-store experience.

Measures to deter theft, such as locking products up or adding alarms, have introduced friction into the shopping journey as customers wait for staff to unlock cabinets or retrieve items from storerooms. But attempts to simplify the shopping experience have facilitated theft: Wegmans ended use of its self-checkout app, citing losses that made the program untenable.

The context: Theft and violent crime in stores have risen since the beginning of the pandemic, as limited in-store staffing and a surge in ecommerce created an opportunity for thieves to sell stolen goods on online marketplaces.

A heavy-handed approach: More retailers have turned to locking items up or shifting inventory to stockrooms to keep shoplifters from snatching items off shelves. But these tactics are frustrating to shoppers who must now wait for a retail associate for assistance.

A better way: Keeping items under lock and key is a “triage-type scenario,” said Scott Glenn, vice president of asset protection — a measure for buying time to test more customer-friendly options. While no retailer has developed a perfect solution, there are a number of approaches, such as reformatting stores to have fewer products on shelves or adding staff to high-risk areas, that can help reduce the possibility of theft..

Among other measures, Ulta Beauty is investing in associate training and hiring more staff to help reduce theft’s impact on its bottom line.

The big takeaway: Theft is a huge problem for retailers—but so is the risk of alienating consumers over a poor shopping experience. Instead of thinking solely about theft prevention, retailers should follow Best Buy’s example and think about prevention within the context of the holistic shopping experience, aligning security with increased convenience and efficiency. insiderintelligence.com

Theft Fueling Store Closures
Rite Aid executive: Impossible to stop NYC store thefts
Rite Aid reported a very difficult quarter on Thursday when the pharmacy chain reported a much larger-than expected loss, sending shares plunging 28% in the session. The loss was related to costs connected to its store-closing plan.

Some of those closures affected stores in New York City, where the retailer has been the victim of crime, specifically shoplifting.

Rite Aid’s chief retail officer Andre Persaud addressed the issue on the company’s earnings call Thursday, saying it is just about impossible to stop stealing in New York City shops.

"I think the headline here is the environment that we operate in, particularly in New York City, is not conducive to reducing shrink just based upon everything you read and see on social media and the news in the city" he said. 

The drug store chain said front-end gross profit was impacted by a $5 million increase in shrink particularly in urban locations. Earlier this year, the chain closed stores in New York's Hell's Kitchen neighborhood and another on Manhattan's Upper West Side.

In all, the store closing plan meant the shutting of 63 stores nationwide, roughly 2% of the total number of Rite Aid locations. Persaud added that the retailer is making progress in thwarting thieves.

"Over the last 24 months, the team has done incredible work on improving our product protection, improving our organized retail client program" he noted. Still, stealing is complicating the inflationary environment as well the retailer warned. foxbusiness.com

More & More Stores Locking Up More & More Products

Target Puts Some Products on Lockdown Amid Theft Explosion
Mission Valley Target Locks Down Products as Retail Thefts Increase

NBC 7 dug into crime data after the Target location started locking away products

Running into a store because you need something quickly can turn into a headache when they're locked away. Shoppers in Mission Valley say that's what they're seeing at Target. Herrera says all kinds of everyday products are now locked away, requiring you to wait for a team member to grab something you want to buy.

So why did Target start locking away smaller products? Data from the San Diego Police Department shows a sizeable increase in thefts. In 2021, there were a total of 39 thefts, including shoplifting and petty theft. By mid-September of 2022, there had already been 105 reported thefts, including several reports of grand theft, when someone stole items worth more than $950.

In a statement, Target told NBC 7:

At Target, we take a multi-layered approach to combating theft. This includes in-store technology, training for store leaders and security team members, and partnerships with law enforcement. On a limited basis, we also employ theft-deterrent merchandising strategies, such as locking cases, for categories that are prone to theft. While we don’t share specifics on these strategies, these decisions are generally made at a local level.

Target isn't alone in doing this. Other retailers like Walmart have locked products away or even created separate sections of the store for highly-targeted items. Some shoppers say if there was more help for people in our communities, companies might not have to lock products away. nbcsandiego.com

Want That Product? You'll Have to Ask an Employee First
Home Depot Won't Let You Shop Without Doing This, Effective Immediately

Home Depot has recently started implementing a new policy to try to prevent retail theft, a rising problem for stores across the country.

Retail executives explain that stores like Home Depot track high-risk goods and lock them up in regions or locations that are being hit hardest. With that new policy in place, you won't be able to shop for certain products without asking an employee for assistance.

Over the past 12 months, Home Depot confirmed that it has been locking up more of its products in stores while it is testing "more customer-friendly, higher-tech solutions" to stopping shoplifting. "It's a triage-type scenario. It's stop the bleeding and give yourself some time," Scott Glenn, vice president of asset protection at Home Depot, told The Wall Street Journal.

According to Glenn, overall theft attempts at the retailer's stores continue to rise compared to pre-pandemic times. But in stores where Home Depot has implemented aggressive theft deterrents, loss to theft has been reduced and sales for high-theft items gradually go up because the store is able to keep them more consistently in-stock. bestlifeonline.com

DOJ Turns Up the Violent Crime Effort in Houston
Assistant Attorney General Kenneth A. Polite, Jr. Delivers Remarks at Announcement of New Violent Crime Initiative in Houston

Houston, TX ~ Thursday, September 29, 2022

I am honored to announce that the Criminal Division will be amplifying their work. In partnership with the U.S. Attorney’s Office for the Southern District of Texas and our law enforcement partners, the Criminal Division is standing up a targeted initiative to fight violent crime in Houston. Together, we will surge the tools and resources we use to investigate and prosecute violent crime nationally, including the use of RICO charges, and apply those tools to gangs who are terrorizing communities here in Houston.

Together, we will employ a data-driven approach to identify and prosecute the “worst of the worst” gangs and gang members who are disproportionately responsible for violent crime in underserved communities in Houston.

Criminal Division’s Organized Crime and Gang Section (OCGS), is leading the new violent crime initiative in coordination with the U.S. Attorney’s Office for the Southern District of Texas and will include dedicated investigative agents, analysts and forensic experts from the FBI, ATF, U.S. Marshals Service, HPD, HCSO as well as many other federal, state, and local law enforcement agencies.

This morning the Department of Justice announced $100 million in grants to help communities across the United States reduce gun crime and other serious violence. Included in that announcement is a $2 million award to Harris County, right here in Houston. justice.gov

Store Security Guard Training at the Center of Fatal Shooting Lawsuit
'They murdered my son': Family sues El Rey, private security firm for fatal shootout
A new civil lawsuit is taking aim at El Rey, its private security firm and that firm's head security guard. In a lawsuit filed Thursday, the family of Luis Lorenzo is suing El Rey, the guard who killed Lorenzo and his security company.

Surveillance footage WISN 12 News obtained from the morning of July 9, 2022 shows Lorenzo and security guard Anthony Nolden arguing inside the store, because Lorenzo brought a bag inside, which is against store rules. Once outside the store, Nolden pepper sprays Lorenzo after video shows Lorenzo square up to the guard.

Cameras show Lorenzo walk away from Nolden and through the parking lot. The video then shows Lorenzo shoot into the air, killing Nolden and Nolden's boss quickly returning fire, killing Lorenzo.

In the lawsuit, Lorenzo's family argues the security's response was unlawful. Lorenzo's family is also suing El Rey, claiming it didn't properly manage or train their private security, therefore was negligent and directly responsible for the use of force and Lorenzo's death.. wisn.com

Lawsuit: Lexington-based gun retailer illegally shipped firearm to mass shooter
Victims of the Fourth of July mass shooting in Highland Park, Ill., have sued Bud’s Gun Shop in Lexington for its involvement in selling a rifle to alleged 21-year-old shooter Robert Crimo III.

Man accused of plotting 'Las Vegas style' mass shooting, threatening to kill police

US: 98.1M Cases - 1M Dead - 94.9M Recovered
Worldwide: 622.5M Cases - 6.5M Dead - 602.3M Recovered

Private Industry Security Guard Deaths: 362  
Law Enforcement Officer Deaths: 802

Cities Beef Up Security to Make Workers Feel Safe Returning to Offices
Safety concerns in Center City lead to more unarmed bike patrols and security guards around office buildings

Saying there is a “negative halo” over Philadelphia, the head of the Center City District has organized city organizations to have more visible security personnel.

More unarmed bike patrols and more security guards. This is the strategy to make office workers and visitors feel safer as employees return to work in Center City. Through August, 52% of Center City office workers were back, though the number could go up with Comcast Corp., one of the largest corporate employers downtown, calling for Comcasters to come into the office at least three days a week.

Saying there is a “negative halo” over the city, the head of the Center City District, Paul Levy, has organized an initiative among downtown organizations to have more security personnel visible on the streets. The district itself is putting more unarmed bicyclists on the street.

The city’s current crisis is fallout from the pandemic and rising crime rates, including shootings. Big-name retailers Rite Aid and Starbucks have closed downtown stores.

The Center City District says it has added 20 employees to its corps of uniformed but unarmed bike patrollers in recent months. The patrols began in 2020 and have expanded over time. With the latest expansion, they will patrol seven days a week with overlapping shifts between when people are leaving their offices between 3 p.m. and 7 p.m.

About 1,700 property owners finance the Center City District through assessments, or fees based on property values. The owners also are beefing up security themselves in preparation for increased occupancy.

“Some companies are putting in panic alarms, giving employees an intrusion alarm in case they work late at night, as well as more video surveillance systems for deterrence,” he said. Pearson also is getting requests for “remote” guards, or security service.  inquirer.com

U.S. Still 'Wholly Unprepared' to Combat Pandemics
New Infectious Threats Are Coming. The U.S. Probably Won’t Contain Them.

The coronavirus revealed flaws in the nation’s pandemic plans. The spread of monkeypox shows that the problems remain deeply entrenched.

If it wasn’t clear enough during the Covid-19 pandemic, it has become obvious during the monkeypox outbreak: The United States, among the richest, most advanced nations in the world, remains wholly unprepared to combat new pathogens.

The coronavirus was a sly, unexpected adversary. Monkeypox was a familiar foe, and tests, vaccines and treatments were already at hand. But the response to both threats sputtered and stumbled at every step.

“It’s kind of like we’re seeing the tape replayed, except some of the excuses that we were relying on to rationalize what happened back in 2020 don’t apply here,” said Sam Scarpino, who leads pathogen surveillance at the Rockefeller Foundation’s Pandemic Prevention Institute. nytimes.com

Good News for Retailers?
Leisure Travel Spending Set to Surge in 2022 as COVID Restrictions are Lifted
With COVID-19 travel restrictions lifted, international inbound U.S. leisure travel spending – adjusted for inflation – is forecast to reach $87 billion this year compared with $33 billion in 2020 and 2021, and $145 billion in 2019, the U.S. Travel Association said in June.

With the dollar and the euro reaching parity for the first time in 20 years in July, American tourists have been splurging on luxury goods in Paris as well as enjoying cheaper treats in London's West End, Reuters has reported.

Americans are spending 11% more on domestic and overseas travel in 2022 compared with 2019, according to consumer survey data gathered by the American Society of Travel Advisors, a trade organization. reuters.com

Bulk orders of COVID-19 tests surge ahead of winter

Remote work could be the reason you don’t have a job in 10 years

DOJ Corporate Crackdown Begins - Read DOJ's Version of Events
Great detailed report on how the security team went way-way over the line

DOJ: Two Former eBay Executives Sentenced to Prison for Cyberstalking
BOSTON – The former Senior Director of Safety & Security at eBay, Inc. and the company’s former Director of Global Resiliency were sentenced to prison today for their roles in a cyberstalking campaign targeting the editor and publisher of a newsletter that eBay executives viewed as critical of the company.

James Baugh, 47, of San Jose, Calif., was sentenced to 57 months in prison and two years of supervised release. Baugh was also ordered to pay a fine of $40,000. David Harville, 50, of Las Vegas, Nev., was sentenced to two years in prison and two years of supervised release. Harville was also ordered to pay a fine of $20,000. On April 25, 2022, Baugh pleaded guilty to one count of conspiracy to commit stalking through interstate travel and through facilities of interstate commerce, two counts of stalking through interstate travel, two counts of stalking through facilities of interstate commerce, two counts of witness tampering and two counts of destruction, alteration and falsification of records in a federal investigation. On May 12, 2022, Harville pleaded guilty to one count of conspiracy to commit stalking through interstate travel and through facilities of interstate commerce, two counts of stalking through interstate travel and two counts of stalking through facilities of interstate commerce.

“The internet is incredibly powerful. It brings community, information, and even merchandise right to our homes. Mr. Baugh and Mr. Harville used the internet’s power to harass and intimidate a couple who did nothing—nothing—other than publish content that our First Amendment protects. The defendants’ toxic brand of online and real-world harassment, threats, and stalking was outrageous, cruel and defies any explanation—all the more because these men were seasoned and highly paid security executives backed by the resources of a Fortune 500 corporation. Their behavior was reprehensible. The just sentences the Court imposed today will take Mr. Baugh and Mr. Harville offline and out of our community for some time. This should serve as a strong reminder to all that holding positions of wealth and privilege does not absolve or shield criminals from accountability and incarceration. The government’s investigation continues,” said United States Attorney Rachael S. Rollins.

Continue Reading Official Release and Public Record

NACS Survey: 41% of C-Stores Offering Self-Checkout in 2022
"The pandemic and the labor shortage is acting as a catalyst"

"Just Walk Out" Tech Popping Up at Airports - Becoming the "Norm" in C-Stores

Hudson's, Zippin, Grab0 & Fly, Camden Food Express have rolled out grab-and-go technology in DFW, JFK, Midway, and others.

Last year, both Kroger and Walmart pushed self-checkout even further and introduced 100% self-checkout test stores. The chains opted to forego traditional manned checkouts altogether:

Wawa started rolling out self-checkout last year to 60-plus stores and stated that all new stores will include self-checkout as an option. Royal Farms expanded its self-checkout solution to all 247 stores in 2021. And the Spinx Company plans to introduce the option in all of its 80-plus South Carolina stores this year. Parker's, Savannah, George, rolled it out in their 70 stores.

While autonomous formats are not yet part of the mainstream shopping culture today—in any retail outlet—it is something that c-stores are becoming more aware of as a potential opportunity.

“Self-checkout is probably the norm in the c-store industry today,” he said when it comes to frictionless solutions. And another retailer said that he finds a correlation between understaffed stores and a greater use of frictionless checkout. “And long-term employees like the system because it greatly reduces a task that tends not to be the favorite,” he said.

“Technologies like this will see significant market share from the top players over the next three years,” Awalt said. “The combination of the pandemic and the labor shortage is acting as a catalyst for the industry as a whole. More c-store companies today have full innovation teams—they are ready for this.” convenience.org

Retail Holiday Hiring Roundup
How retailers are hiring for the holidays in 2022

In preparation for demand, some companies are staffing for the season similarly to 2021 while others are reducing their efforts.

Walmart: The company’s hiring for the 2022 season slowed to 40,000 additional associates, which is down about 75% from the 150,000 hired last year.

Target: Target is keeping its hiring plans steady this year, once again planning to bring on up to 100,000 seasonal employees to help out at its stores and supply chain facilities.

Dick’s Sporting Goods: Dick’s Sporting Goods plans to hire up to 9,000 seasonal associates this year, according to a company press release

Macy’s: The department store this week said it’s working to fill more than 41,000 full- and part-time seasonal positions at its Macy’s, Bloomingdale’s and Bluemercury stores, supply chain locations and call centers.

Kohl’s: Although the company wouldn’t say exactly how many employees it would bring on, a spokesperson told the Milwaukee Business Journal that the number would be comparable to last year’s number of 90,000.

UPS: UPS announced in September that it plans to hire more than 100,000 seasonal employees in time for the holiday rush.

Party City: Party City said it will hire 20,000 employees in time for the holidays.

Michaels: Arts and crafts retailer Michaels announced it will hire 15,000 seasonal employees in the U.S. and Canada ahead of the 2022 holiday season. retaildive.com

Deadliest Hurricane in History?
Biden: Hurricane Ian ‘could be the deadliest’ in Florida’s history
President Biden on Thursday warned Hurricane Ian could prove to be the deadliest storm in Florida’s history as it punished swaths of the state with flooding rains and damaging winds.

“This could be the deadliest hurricane in Florida’s history. The numbers are still unclear, but we’re hearing early reports of what may be substantial loss of life,” Biden said during a visit to Federal Emergency Management Agency headquarters for a briefing on the hurricane response.

Hurricane Ian made landfall on Wednesday as a Category 4 storm, lashing the western coast of the state in particular. But the size of the storm meant that other parts of the state also faced flooding and power outages. thehill.com

At Least 19 Deaths Reported So Far
After slamming Florida, Hurricane Ian barrels toward South Carolina
Storm system Ian has intensified to a Category 1 hurricane, and it's expected to make landfall in South Carolina midday today, according to the National Weather Service. The storm made landfall along the southwestern coast of Florida as a powerful Category 4 hurricane Wednesday.

At least 19 people have been reported dead so far due to the storm. Search and rescue efforts are underway in the worst-hit areas of Florida. cnn.com

144 Walmart & Sam's Club Stores Still Closed From Hurricane Ian

Walmart, Sam’s Club and the Walmart Foundation are committing up to $6 million to recovery and relief efforts.

As part of this commitment, we will help maximize their impact by matching contributions 1:1 when they donate at our registers (up to $2.5 million) or through our associate giving program. walmart.com

Why stores start selling Christmas stuff in September
This year, there are new incentives for holiday creep. Higher prices are factoring into purchasing decisions this year, and these early promotional deals allow shoppers to stretch their budgets over a longer period of time

McDonald’s is coming out with Happy Meals for adults
 

Senior LP & AP Jobs Market

Director, Investigations - Workplace Investigations job posted for Walmart in Bentonville, AR
Walmart is seeking a Director for Workplace investigations who has a strong knowledge base of overseeing, conducting and/or managing internal investigations. The Director of Workplace investigations will need to be a motivated team player with a keen ability to effectively manage a team of investigators and managers. Our Global Investigations team is assigned to investigate a broad range of sensitive and complex matters for the company. The team is tasked to conduct and examine issues objectively and leverage investigative techniques and advanced analytics to appropriately report the facts. careers.walmart.com