Fighting Retail Crime Will Require All-of-the-Above Approach
Preventing Retail Crime Needs to Be Addressed

Brick-and-mortar stores are an integral part of the community that need to be protected, Spross says

Over the past few years, retail crime has been on the rise across the country. A seemingly regular part of the daily news cycle is stories about robberies at convenience stores or chilling videos of “smash and grabs” at tobacco stores. The National Association of Tobacco Outlets (NATO), a national trade association that represents more than 66,000 retail stores that sell tobacco and nicotine products throughout the country, is partnering with its members and working with federal, state and local elected officials to combat this problem.

On the federal level, the Combating Organized Retail Crime Act of 2023 is pending in Congress. The legislation would increase the federal enforcement of organized retail crime and asks Congress to examine how to make the reporting of crimes less burdensome for businesses and law enforcement and analyze how substance abuse and mental health issues contribute to the rising levels of retail crime. This legislation is unlikely to pass before Congress adjourns at the end of the year, but efforts will continue to advocate for legislation in the new Congress.

Several states around the country have also been addressing this issue with legislation. In Oklahoma, a new law was enacted that increases burglary penalties at businesses. While a first offense for burglary would be a misdemeanor charge, subsequent offenses would result in felony charges. New York also implemented retail theft protections including changing assaults on retail workers from misdemeanors to felonies and funding specialized retail theft teams within state law enforcement organizations.

Voters in Arizona and California will also have a say with this important issue at the ballot box in November. Arizona Proposition 312, if passed, will hold municipalities financially accountable for lax law enforcement by allowing residents, businesses and property owners impacted by unenforced laws and crime to seek compensation for documented, reasonable expenses incurred because of retail theft. California voters will decide on Proposition 36, which will address organized and serial retail theft by closing the loophole that allows thieves to victimize businesses repeatedly without consequence, providing new tools to confront the fentanyl and drug addiction crisis and prioritizing mental health and drug treatment.

NATO encourages retailers to continue to engage with their elected officials on this matter. Brick-and-mortar retail stores are an integral part of the community providing vital services and resources, employing individuals and contributing to the local economy. These stores need to be protected from dangerous crimes. cspdailynews.com


Prop 36 Becomes Top Political Issue in California

Walmart, Target, Home Depot Top Supporters of CA's Prop 36
Prop 36: Increase penalties for theft and drug trafficking
Proposition 36 would reclassify some misdemeanor theft and drug crimes as felonies. The measure would also create a new category of crime — a “treatment-mandated felony.” People who don’t contest the charges could complete drug treatment instead of going to prison, but if they don’t finish treatment, they still face up to three years in prison.

Why is it on the ballot?

Prosecutors, police and big box retailers have blamed Prop 47 for an increase in property crimes and homelessness. Prop. 36 is their attempt to unwind Prop. 47. Statewide, the Public Policy Institute of California found that reported shoplifting of merchandise worth up to $950 soared 28% over the past five years. That’s the highest observed level since 2000.

Combining shoplifting with commercial burglaries, the institute’s researchers found that total reported thefts were 18% higher than in 2019.

Supporters also say Prop. 36 is a good middle ground between California’s tough-on-crime days, which pushed prison capacity past its breaking point, and the last decade under Prop. 47, which they have say created “loopholes in state law that criminals exploit to avoid accountability for fentanyl trafficking and repeat retail theft.”

Supporters

• Walmart, Target, Home Depot
• California District Attorneys Association
• California Correctional Peace Officers Association
• California Republican Party
• Howard Jarvis Taxpayers Association
• California Chamber of Commerce calmatters.org


Store Owners Welcome Stiffer Theft Penalties in Prop 36
How to deal with SF’s retail theft hot spots? What store owners say about Prop 36
On the ballot: Prop 36, a high-stakes initiative to reclassify these offenses as felonies if the perpetrator has at least two past convictions for similar crimes, such as burglary, shoplifting or carjacking. If found guilty, a person could face three years in county jail or state prison.

Many merchants in San Francisco’s hardest-hit shopping districts say they welcome the stiffer penalties, even if research suggests the increased threat of incarceration may not hinder shoplifters. By this point, emotions have grown raw. Store workers are weary of confrontations; customers grow aggravated when whole aisles of products are locked behind theft-proof glass. A law that carries harsher punishments seems like a simple solution.

“Right now there are no consequences for (perpetrators’) actions,” said Cee Hayes, a Muni inspector who witnessed the first thief fleeing Skechers with his stuffed backpack Thursday. “And this area,” he said, gesturing to the row of stores with shimmering glass display windows, “this area is impacted a lot.”

These retail hubs have become battlefronts in a heated public safety debate, and could serve as laboratories testing the impact of Prop 36, should it pass in November. Business owners are also deliberating whether the measure will help other beset streets, including intersections in the Castro, Cow Hollow and Civic Center.

Supporters of Prop 36, among them a broad coalition of mayors, prosecutors and trade groups, view it as a strong deterrent that will make streets safer and lure shoppers back. Critics, including Gov. Gavin Newsom, question the wisdom and benefit of locking more people up. sfchronicle.com


The View From the Left
Prop. 36 taps into Calif. voter anger over crime. But is it a terrible idea? | Opinion
We understand that Prop. 36 is overwhelmingly popular with frustrated California voters. We agree that Gov. Gavin Newsom and legislative Democrats dithered too long to address voter concerns about fentanyl abuse and retail theft and their failures to lead and listen only fed support for Prop. 36. We know it would have been easy and popular to endorse Prop. 36.

We oppose Prop. 36 because we think it is a bad idea driven by anger over reason. Prop. 36 duplicates laws already on the books and is likely to lead to overcrowded jails and prisons, costing taxpayers untold millions of dollars that could go to treatment programs aimed at helping offenders.

The measure promises to alleviate three major problems - homelessness, drug addiction and theft - by closing loopholes in Proposition 47. That’s the 2014 voter initiative that reduced some low-level drug offenses and property crimes from felonies to misdemeanors. Among other goals, Prop. 47 sought to reduce the population in California’s badly overcrowded prisons. It worked. Within two years, the state’s jail and prison population decreased by 13,000 and saved California more than $800 million, according to the Public Policy Institute of California. If Prop. 36 passes, it will undo what Prop. 47 has achieved.

The nonpartisan Legislative Analyst’s Office estimates the increase in the state’s criminal justice costs would likely range from “several tens of millions of dollars to the low hundreds of millions of dollars each year.” Prop. 36 amounts to another swing of the pendulum that would put more Californians behind bars for nonviolent offenses. sacbee.com


Early Sunsets = More Retail Crime?
Winter Security Strategies for Retail Stores

Ramp up your efforts to stay safe and decrease crimes of opportunity.

As winter’s long nights descend, convenience stores face a chilling reality: Darkness is a thief’s best friend. While the world sleeps, small retailers must stay vigilant against the surge of opportunistic crime that comes with early sunsets. In this season, security isn’t just a precaution—it’s survival.

Ignoring security hurts your business

Small and midsize convenience stores operate on tight margins; every lost dollar counts. But it’s not just about lost merchandise. If lax security harms a customer or employee, you could face hefty legal bills. Lawsuits aren’t anyone’s idea of a winter wonderland.

Fortify before the freeze

Don’t wait for the first frost to ramp up security. Train your employees to be vigilant; a simple greeting can deter thieves. Equip your team to spot suspicious behavior and respond quickly when something seems off. Rearrange your store for maximum visibility. Keep shelves low and aisles clear to eliminate hiding spots. Install mirrors in corners to watch those tricky blind spots. Bright lighting inside and out leaves no shadows for trouble to lurk.

Invest in straightforward security tech. Cameras, even dummy ones, can make crooks think twice. Motion-activated lights startle intruders and draw attention. Door chimes alert you when someone enters or leaves. Connect with local businesses and law enforcement to inform yourself and keep an eye on the neighborhood.

Keep a close eye on the checkout counter, which is a prime spot for potential losses. Employee theft is a genuine concern, but technology offers a solution. Some merchant providers provide point of sale (POS) integration with video surveillance. You get increased register security and peace of mind. A trained technician links your surveillance camera with your POS system, overlaying real-time transaction data onto your DVR footage.

A safe store is the warmest place to be on a chilly night: inc.com


Using AI to Fight Theft & Overall Shrink
How AI Brings Clarity to Lost or Stolen Products From DC to Store
Shrink impacts retailers in multiple ways across the product journey. Whether it’s shoplifters nabbing items off shelves, associates mislabeling products, or organized retail crime syndicates running fraudulent online returns practices, inventory goes missing, and retailers bear the loss.

Yet there’s one station of the retail journey that comes with a little more mystery: the “in-between.” This is where individual items, skids or sometimes entire trailers disappear between distribution center and store, or on their way to the customer’s home.

To better monitor lost or stolen inventory during the last mile of delivery or the shipping process, retailers are gaining more clarity by combining AI with other advanced technologies.

Retailers react to in-between shrink in many ways. Some stores place security on loading docks to protect goods and support trucks offloading items. Others install cameras to monitor suspicious behavior. Retailers can add to these actions and implement artificial intelligence to help shine more light on the darkness of the last mile.

Radio frequency identification (RFID) scanning technology has been around for a while, but it's becoming more accessible to retailers. Electronic product codes (EPCs) are used to uniquely identify each product, pallet or container, allowing them to be tracked throughout the supply chain. Scanners are placed at entry and exit points (sometimes even in trucks), enabling retailers to monitor the location of items at all times.

Retail analytics tools can help identify when and where inventory goes missing or is misplaced. However, without an integrated analytics platform, the RFID data may remain just information, rather than usable insights. Following are some benefits of RFID, AI, and generative AI working together to assist retailers in identifying shrink during the last mile. supplychainbrain.com


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Walmart Goes All In on AI
Why Walmart is developing its own retail-specific AI models
On Wednesday, Walmart debuted a new set of retail-specific AI models to help power the company’s “Adaptive Retail” era of personalized shopping and customer service. Called Wallaby, the LLMs were trained on decades of Walmart data with company-specific knowledge about customers, employees, Walmart terminology, its corporate values and other brand-specific data. Walmart also plans to integrate Wallaby with other AI models based on the goals for each application.

Along with Wallaby, other initiatives in the works include a new “content decision platform” that uses AI to understand customers, and a generative AI-powered tool to predict content each shopper would want to see on the Walmart’s website. Walmart also has developed an AR platform called Retina to engage with customers in new online environments using virtual spaces and avatars. Another update includes new immersive commerce APIs, which are in alpha tests with the gaming engine Unity and the virtual world platform Zepeto.

Wallaby follows Walmart’s other generative AI models to build on the retail giant existing foundation for multiple LLMs to assist employee and shoppers. The plan is to release new Wallaby-enabled customer experiences in the U.S. by the end of 2025. Walmart International also will use the platform to power personalized product recommendations in Canada and Mexico. For now, it’s being tested “quite heavily” internally, said Desirée Gosby, Walmart Global Tech’s vp of emerging technology.

Generative AI tools for e-commerce are increasingly an area of exploration for retail giants and startups alike. Walmart rivals including Amazon have been rolling out a range of new tools for advertisers and customers. In fact, also on Wednesday, Amazon announced a new tool powered for shopping guides. digiday.com


Only 24% of Front Line Workers Properly Trained?
Gap in Training Front Line Workers

Just 24% of workers say they have right training needed to succeed at work.

Determing the correct amoount of training is difficult. A recent survey, the 2024 Lighthouse Research & Advisory Frontline Development Trends Study, which gathered responses from 737 different employers and 1,050 workers across frontline industries, found a gap in training.

“In a world where nearly six in 10 frontline workers say that they have experienced additional stress due to low staffing levels over the last year, it’s time to turn our attention to this critical segment of the workforce in a practical, proactive manner to help them be more productive and engaged in their work,” the report says.

In addition to low staffing levels, just 24% of those surveyed strongly agree that they have the right types and amount of training they need to succeed at work. Respondents cited time/scheduling constraints, limited practice opportunities, and/or lack of resource access as the top three reasons they have trouble developing their skills at work.

And the top learning constraint for frontline workers new to their jobs is limited opportunities to practice/apply new skills. For workers with less than six months on the job, 50% say they need to learn new things either on a daily basis or on a weekly basis.

With regard specifically to safety training, while nearly 90% of those working in manufacturing said that safety training is critical, workers in this industry are the least likely of all frontline industries to say that they get the proper training to do their jobs well. ehstoday.com


Drop in Halloween Retail Spending?
Halloween Has Retailers Scared as Consumers Trade Down
For American retailers, Halloween 2024 could end up being more trick than treat. As Bloomberg News reported Saturday (Oct. 12), Halloween consumption is expected to drop this year, the latest in a series of obstacles for stores dealing with rising expenses and cost-cutting consumers.

The report, citing data from the National Retail Federation, says that spending for the holiday will come to $11.6 billion this year, a 5% drop. The largest dip is projected to come from sales of greeting cards and costumes, bad news for retailers who depend on seasonal spending. Making matters worse, families on the lower end of the income spectrum are spending less. pymnts.com

 
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Senior LP & AP Jobs Market

Associate Full Time, Asset Protection job posted for Wayfair in Wilmette, IL
As an Asset Protection Host, you will support the Asset Protection and Store Leadership team by contributing to the overall guest experience by welcoming and thanking guests and employees into the retail store. This key role will report to the Asset Protection Lead and Asset Protection Manager. This is a people-facing role and requires the right candidate to be engaging, charismatic, and eager to engage regularly with customers and employees... Learn more and apply here