'Fight Retail Crime Day' Paid Off - Lawmakers on Both Sides Respond

Momentum for Federal ORC Legislation Grows After 'Fight Retail Crime Day'
Senator Cassidy Cosponsors Bill to Bolster Federal Response to Retail Theft
WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) cosponsored legislation introduced by Senators Chuck Grassley (R-IA), Catherine Cortez Masto (D-NV) to establishes a coordinated multi-agency response and creates new tools to tackle evolving trends in organized retail theft. Organized retail crime costs retailers $720,000 for every $1 billion in sales – up 50 percent since 2015. As law enforcement focuses on the rise in drug trafficking and other offenses, criminal organizations have increasingly turned to retail crime to generate illicit profits, using internet-based tools to organize flash mobs, sell stolen goods and move money.

“Organized retail crime is becoming more and more prevalent, putting retailers, their employees and communities in danger,” said Dr. Cassidy. “The Combating Organized Retail Crime Act provides what we need to fight these crimes.”

“Stores throughout American communities have not been spared from a national crime wave. These organized theft rings have been developing new tactics to pilfer goods, causing economic harm to American businesses and putting consumers at risk while funding transnational criminal organizations throughout the world. These criminals are exploiting the internet and online marketplaces to stay one step ahead of the law, and it’s time the law catches up. This bill improves our federal response to organized retail crime and establishes new tools to recover goods and illicit proceeds, and deter future attacks on American retailers,” said Senator Grassley.

The bicameral Combating Organized Retail Crime Act of 2023 creates a unified government and industry collaboration to address this trend. The bill establishes a Center to Combat Organized Retail Crime at Homeland Security Investigations that combines expertise from state and local law enforcement agencies as well as retail industry representatives. It also creates new tools to assist in federal investigation and prosecution of organized retail crime, and help recover lost goods and proceeds.

It is supported by the National Retail Federation, the Retail Industry Leaders Association, the U.S. Chamber of Commerce, ICSC, the Peace Officers Research Association of California, the Federal Law Enforcement Officers Association, Sergeants Benevolent Association NYPD and the PASS (Protect America’s Small Sellers) Coalition. cassidy.senate.gov

RELATED: Grassley Rallies Colleagues And Retail Leaders In Support Of ORC Bill


California Rep Sounds the Alarm Over Theft
Retail Theft On the Rise As Harder Fights for More Law Enforcement Resources

Organized retail crime has spiked 26.5%, costing the retail industry over $112 billion last year

Stockton businesses dealing with constant theft; Sacramento has 7th highest rate in the country

WASHINGTON – On Fight Retail Crime Day, Representative Josh Harder (CA-9) sounded the alarm on the dramatic rise of organized retail theft and he’s pushing his colleagues to pass his legislation to stop it. The Combating Organized Retail Crime Act would provide law enforcement with new tools to tackle evolving retail theft trends as well as establish a coordinated multi-agency response to stop organized retail theft. This type of organized crime cost the retail industry over $112 billion in 2022 – a dramatic increase from $94 billion in 2021 – and the loss for businesses means even higher prices for families.

"Criminals are running rampant right now. They are stealing thousands of dollars’ worth of products and facing zero consequences. Law enforcement is already stretched thin and now this rise in organized crime is making it even more difficult,” said Rep. Harder. “We have to take this seriously. It’s unsafe for our families and driving high prices up even higher. The Combating Organized Retail Crime Act will get our law enforcement crucial resources to finally get these criminals under control.”  harder.house.gov

RELATED: Bipartisan bill would crack down on organized retail theft


Security Dogs Added Outside NYC CVS Location
CVS & Home Depot follow Walmart with new ways to combat theft

All three companies are trying some pretty bold ways to cut down on theft to avoid having to close stores.

Walmart recently took the extreme step of closing one Atlanta store with plans to reopen it with an on-site police station. That was a solution the retailer came to after talking with community leaders who did not want to see the city lose the retail giant, which has closed some locations in Chicago.

CVS adds security dogs

CVS, through a deal with The 34th Street Partnership, a New York City organization dedicated to promoting business, has added security dogs in front of one of its locations. The dogs aren't only protecting CVS, but also neighboring stores.

"Security guards with dogs are currently stationed outside the CVS on 34th and 8th, among other locations. While the dogs are obviously unable to detect shoplifting behavior, 34th Street Partnership Vice President Ken Ward said their presence outside stores intimidates would-be thieves," the Chelsea News reported.

The pilot program appears to be working as "known shoplifters" have walked by the CVS and not gone in, according to Ward.

Home Depot works with law enforcement

Home Depot worked with law enforcement in Florida to take down a crime ring that had targeted its stores. The criminals were arrested after an investigation by the Florida Organized Retail Crime Exchange taskforce, according to a press release from State Attorney General Ashley Moody.

Like Walmart and Home Depot, more retailers have been working directly with law enforcement to find local solutions to increased theft problems. thestreet.com


But the Theft Data Debate Continues
Chains are using theft to mask other issues, report says
Some retail analysts and researchers, bolstered by local crime statistics, say stores may be over-stating the extent and impact of theft. Why? It’s a useful deflection, camouflaging weak demand, mismanagement and other issues denting business right now. And it forces lawmakers to respond.

Across the country, the “actual increase in rates of theft” at stores does not “correspond to the increase in company commentary and actions” on theft, according to a new report by retail analysts at William Blair. “Retailers are increasingly vocal on the subject, in part to draw out government action,” the analysts wrote.

To be sure, theft is impacting retailers much more than it was before the pandemic. That’s because theft has also gotten more visible and more violent, retailers say, and has put employee safety at risk in some cases.

But a host of other issues, from inflation to rising costs, are impacting retailers, too. Theft is just one of many structural issues chains are facing, most notably the shift to online shopping and over-expansion of brick-and-mortar retail.

Debating over shrinkage

The National Retail Federation said that retailers’ losses, known as shrink, increased 19% last year to $112 billion, based on a survey of 177 retailers. But shrink as a percentage of sales fell during the height of the pandemic as stores temporarily closed and grew in 2022 as stores re-opened.

This hit to profits is relatively small and fleeting — not reason enough alone to close stores according to the analysts. At nine major retailers that have increasingly cited the rising impact of theft, shrink as a percentage of sales increased just 0.4% in 2022, they found.

“We believe there is a disconnect…between the expected increase in shrink and the attention it has drawn,” the analysts said. cnn.com


LA's Theft Task Force Making Progress
Organized Retail Theft Task Force Catching Smash-and-Grab Thieves
This past week, L.A. County Supervisors Janice Hahn and Hilda Solis and Sheriff Robert Luna held an event to discuss the progress made so far by the Los Angeles County Sheriff’s Department’s Organized Retail Theft Task Force.

Last month, the Board of Supervisors approved a $15.6 million grant from the state to fund the task force. The funds will go towards training for law enforcement personnel involved and new technology.

The task force will feature 22 full-time investigators devoted to organized retail crime, according to Deputy Chief Kris Pitcher, the chief of detectives for LAPD.

The California Highway Patrol will “triple its resources” in Los Angeles to help address organized retail crime, according to the governor’s office.

“In the first five weeks of the task force, our teams have made 89 arrests for retail-related thefts, recovered six firearms, and executed 52 search warrants,” Luna said. Investigators have recovered $370,000 worth of stolen merchandise.

“The task force is working closely with the business community, establishing new lines of communication with store owners and managers,” Hahn said.

“I am going to take an educated guess right now that several of the individuals being arrested are repeat offenders, and that’s a significant challenge for us,” Luna said.

The challenge, according to authorities, is holding those people accountable with the current laws in place. loscerritosnews.net


Europol: Unleashing tech in the fight against intellectual property crime

Europol Intellectual Property Crime Conference hosts 250 experts fighting counterfeit goods that pose threat to health, safety, and the environment.

The conference, themed "Tackling counterfeit goods posing a threat to health, safety, and the environment," delved deep into the critical issues surrounding intellectual property (IP) crime, with a particular focus on the role of advanced technology. Within a busy agenda of conference activities, a diverse group of experts and stakeholders from around the world came together for the discussion.

Since its inception in 2017, the Europol Intellectual Property Crime Conference has proven to be an invaluable platform for law enforcement authorities and the private sector. The conference provides an opportunity for participants to strengthen cooperation, share experiences, and identify new trends in intellectual property crimes.

In September 2023, Europol unveiled its assessment of the threats originating from financial and economic crimes at EU level. A section of this report is dedicated to intellectual property crime, drawing from a blend of operational insights and strategic intelligence contributed by law enforcement agencies to Europol. europa.eu


Oklahoma Organized Retail Crime Task Force holds first meeting
The Oklahoma Organized Retail Crime Task Force held its first meeting, hosted by Senate Pro Tem Greg Treat, R-Oklahoma City, to discuss organizational matters on Thursday. The task force was established through Senate Bill 674, with the goal of providing the Oklahoma legislature with research-based recommendations to minimize organized retail crime throughout the state. According to the bill, the task force’s recommendations must be submitted in a report to the governor, Senate pro tem, speaker of the House and chairs of the House and Senate committees overseeing public safety by Dec. 15, 2024. The task force consists of 15 appointed members, who selected Home Depot’s lead organized retail crime investigator Jaime Bourne as chairman and QuikTrip’s manager of public and government affairs Michael Junk as vice chairman. Plans for future task force meetings are unavailable at this time, but will be announced at a later date.  kfor.com


Shoppers wait as long as 40 minutes for items locked up to combat shoplifting

Thompson, Gun Violence Prevention Task Force, pen letter to new Speaker of House

Retailer Accused of Funding Sex-Trafficking Operation
Abercrombie & Fitch sued for enabling ex-CEO Mike Jeffries’ alleged sex trafficking operation
Abercrombie & Fitch was accused in a new lawsuit of bankrolling an alleged sex-trafficking operation run by its former CEO, Mike Jeffries, who has also been accused of sexually abusing and raping male models.

The popular clothing brand, a staple in malls across America, allowed Jeffries “unfettered access” to resources, “enabling” him to build a “criminal enterprise” that endured for years, according to court documents.

The suit against Abercrombie, filed in Manhattan on Friday, also named 79-year-old Jeffries, the former CEO’s family office, and his partner Matthew Smith as co-defendants. It was brought by David Bradberry under the New York Adult Survivors Act, which allows people to file civil sexual abuse claims that would have otherwise exceeded the statute of limitations.

Jeffries ran Abercrombie as CEO from 1992 until 2014. In the decades between, he and his partner allegedly lured hopeful male models to events and parties around the world, where they were often forced into performing sexual acts.

Bradberry, now 37, said he was first approached in 2010 by a man claiming to be an agent for young stars. In reality, he was part of a highly organized network of middlemen employed specifically to track down attractive young men, BBC News reported. He then allegedly set up Bradberry, 23 years old at the time, with a modeling scout, who told him he would not be allowed to meet with Jeffries unless he engaged in sex acts. When they were finished, the scout allegedly gave Bradberry cash.

According to the lawsuit, Abercrombie knew — or should have known — it was providing the “financial lifeblood” for Jeffries’ sex-trafficking operations. The former CEO used corporate resources including a jet and unlimited amounts of cash to bolster his ventures, ultimately enabling him to accumulate “new victims at an alarming rate.”

The suit, which is seeking class-action status, estimated “dozens and likely over a hundred young models” were victims. nydailynews.com


‘Pharmageddon’ is Coming
Thousands of pharmacists plot next walkout over work conditions
Workers from some of the nation’s biggest pharmacy chains, from CVS to Walgreens, have planned another “walkout” starting Monday as they continue to plead for better working conditions.

They’re calling it “pharmageddon,” Shane Jerominski, a licensed pharmacist for over a decade who is helping coordinate the latest protest, told FOX Business.

From Monday through Wednesday workers at Walgreens, CVS and Rite Aid have pledged to call in sick, according to Jerominski. Some of the biggest demands include guaranteed hours and better pay for technicians. They also want pharmacists and pharmacy managers to have a direct say in the scheduling.

The hope is that these changes will lead to better staffed stores, improve their work-life balance and reduce the margin of error that they say could impact patient safety.

It’s hard to pinpoint how many people will be involved in this latest effort, according to Jerominski. However, according to a poll posted on his social media page, The Accidental Pharmacist, over 2,000 people said, “I’m all for this no matter what.”

An additional 1,442 people said they would as long as “hundreds to thousands of pharmacists and technicians” participate, according to screenshots of the poll seen by FOX Business. nypost.com


"Just Walk Out" Picking Up Momentum With Consumers Slowly
One in Three Shoppers Interested in Frictionless In-Store Checkout
While “Just Walk Out”-style checkout remains quite new to most consumers, and may not be for everyone, PYMNTS Intelligence reveals that a significant portion of shoppers are open to the payment method, creating an opportunity for grocers looking to lower their labor costs.

PYMNTS Intelligence’s report “How We Will Pay Report: How Connected Devices Enable Multitasking Among Digital-First Consumers” draws from a survey of more than 4,600 U.S. consumers to understand how they use their internet-connected devices on a day-to-day basis.

The results reveal that, among the more than 95% who use such devices, 35% would be interested in an experience wherein they walk into a store and pick up a product, then walk out without standing in a check outline to pay, with sensors detect what they have put in their cart, automatically charging them for those items using an app with the payment method. Plus, 6% reported that they already use this checkout method.

Frictionless checkout is becoming more common across grocery stores and convenience stores, but many consumers are not quite ready to take the plunge. For now, it seems that, for grocers to reap the benefits of technology, they may also need to offer more traditional options to those who are more hesitant.

Amazon, for its part, has been adding more traditional self-checkout kiosks to stores that previously relied solely on Just Walk Out. pymnts.com


COO Gets 66 Months & Finance Exec Gets 30 Months for $1.8+ Million Embezzlement
DOJ: Finance Exec. Gets 30 Months Fed. Prison for Stealing $1.8+ Million From Employer Shore Appliance
Duane G. Larmore, age 48, of Salisbury, Maryland, sentenced to 30 months in federal prison, followed by three years of supervised release, for a wire fraud conspiracy and aggravated identity theft in connection with the theft of more than $1.8 million from Shore Appliance Connection, where Larmore worked maintaining the books and records for the company.

From mid-September 2016 through about March 2020, Larmore conspired with others to steal more than $1.8 million from a Salisbury, Maryland company, Shore Appliance Connection.

Co-defendant Stephen Franklin was the chief operating officer of Accurate Optical, a chain of optometric shops on the Eastern Shore of Maryland and with the owners of Accurate Optical he also purchased East Coast Optometric, a chain of South Carolina optical shops.

Larmore and Franklin stole nearly $2 million from Shore Appliance to use for their own purposes, including to make investments and to pay business expenses for Franklin’s business, without the knowledge and consent of the owners of Shore Appliance.

On September 7, 2023, Judge Chasanow sentenced Stephen Franklin, age 54, of Salisbury, Maryland, to 66 months in federal prison on the same charges and also ordered him to pay restitution in the full amount of the victims’ losses. justice.gov


Bosch to sell its security products businesses
In what the company is calling a "realignment," Bosch Building Technologies announced on Thursday morning that it is selling most of its product businesses, including video surveillance, access control, intrusion detection and communications. The fire alarm business will remain with the company. securityinfowatch.com


Z Gallerie to close all 21 stores

Wawa plans 80 Stores in NC

Insignia Product Recall Of 930,000 Pressure Cookers Sold at Best Buy


Quarterly Results

McDonald's Q3 Global comp's up 8.8%, U.S. increased 8.1%, Global Systemwide sales* up 11%, Consolidated revenues up 14%
 

Senior LP & AP Jobs Market

Director, Loss Prevention job posted for Pandora in New York, NY
The Director, Loss Prevention is responsible for shaping and safeguarding PANDORA’s Retail Organizations assets and profitability by overseeing loss prevention initiatives and security measures. The are responsible for developing, implementing, and managing strategies to prevent theft, fraud, and operational losses. careers.pandoragroup.com
 

(Update) Tampa, FL: Man arrested in ‘massive’ $1.6 million liquor theft in Hillsborough County, deputies say
Hillsborough County deputies arrested a man who they said was involved in a “massive” theft that stole approximately $1.6 million in liquor from a local warehouse. The Hillsborough County Sheriff’s Office said between July 7 and July 10, a group of thieves stole crates of liquor from a distribution center in Gibsonton, using at least two semi-trucks to transport the goods. According to investigators, the stolen liquor was moved to South Florida, but detectives managed to track the shipment to a storage facility in Hialeah. During their investigation, deputies seized “a Kenworth semi-cab, two Wabash trailers, and a Kia Stinger” that authorities said were used in the crime. After finding the stolen liquor, detectives managed to recover the shipment, valued at over $1.5 million, and give it back to the owner, the sheriff’s office said. “I commend our dedicated detectives for their tireless efforts in swiftly apprehending the individual responsible for this audacious million-dollar liquor theft,” Sheriff Chad Chronister said. “The recovery of over $1.5 million worth of stolen liquor is a testament to their unwavering commitment to justice. As the investigation unfolds, we anticipate further arrests, ensuring that all involved parties are brought to justice.” Deputies said they arrested Miguel Angel Artles Rivas, 33, as a suspect in this case. He now faces charges of grand theft of $100,000 or more and burglary over $1,000 in damages. However, they still have a warrant out for another suspect, 54-year-old Ruth Melly Cardero.  wfla.com


Los Angeles, CA: Man arrested for organized retail crimes netting more than $100k in LA, Riverside counties
Nickolas Mallory, 25, was arrested on Sunday after investigators served a warrant at his residence, according to Los Angeles Police Department. He was booked on suspicion of robbery and his bail has been set at $1.3 million. A statement from LAPD says that Mallory "was involved in multiple robberies/felony thefts from Nordstrom stores in Los Angeles, and numerous thefts from the 73500 block of El Paseo Drive in Palm Desert." On top of that, police also noted that he was responsible for additional felony crimes committed in Los Angeles and Riverside Counties that resulted in a loss exceeding $100,000 in merchandise. Following his arrest, the Los Angeles County District Attorney's Office filed additional felony charges against Mallory, which included robbery, burglary, organized retail crimes, possession of a firearm by a felon and unlawful possession of an assault weapon.  cbsnews.com


San Bernardino County, CA: Man busted with $20,000 in tools stolen from Home Depot Stores
A 34-year-old man from Perris was arrested last week on charges of grand theft after deputies discovered thousands of dollars in merchandise stolen from Home Depot stores, authorities announced. A deputy with the San Bernardino Sheriff’s Department responded to a Home Depot store on Oct. 19 on reports retail theft between Oct. 13 and 15 resulting in the loss of approximately $1,400 in property. A little more than a week later, SBSD deputies, along with deputies from the Riverside County Sheriff’s Department, served a search warrant at a residence in the 2300 block of Stonybrook Way in Perris.  ktla.com


Rochester, NY: NY State Woman Allegedly Made Over 10K in Fraudulent Returns
A Rochester woman has been charged with making over $10,000 in fraudulent returns to several area retail stores. New York State Police arrested 22-year-old Theresa Colaizzi in the afternoon on October 20 after what they described as an ‘extensive investigation’. Troopers said from January through June of this year, Colaizzi purchased items from HomeGoods, Marshalls, HomeSense, and T.J. Maxx in Monroe and Ontario Counties. She would then make fraudulent returns to receive a double refund. In total, she took home $10,175.25 from those TJX Companies. Colaizzi was charged with third and fourth-degree grand larceny and two counts of first-degree scheme to defraud.  rochesterfirst.com


Rocky Mount, NC: Gun, drugs, party speaker: 3 men charged with robbing 5 major retail stores including Target, Ulta
Three men are facing charges after they were arrested for breaking into several retail stores and stealing items, the Rocky Mount Police Department said Friday. At about 1:30 a.m. Tuesday, officers said they were called to the Ulta Beauty in reference to a breaking and entering call. When they arrived, they said they found that the suspects had shattered the glass on the front doors of the business, then went inside and stole multiple items. Detectives who worked on the case said an anonymous citizen helped them identify one of the suspects. They said they used this tip and other information to obtain and execute a search warrant on the 1000 block of Star St., where they said they found the stolen property from Ulta Beauty. Investigators said they also executed a search warrant on the 600 block of Hammond St. In both locations, they said they found stolen property from Target, T.J. Maxx, Burlington and Lowe’s. The stolen property included clothing, tools, appliances, perfume, cologne, electronics and other items, detectives said. According to the police department, a handgun and marijuana were also found and seized.  cbs17.com