Combating Organized Retail Crime Act Makes More Headlines
Bipartisan proposal aim to crack down on organized retail crime nationwide
From expensive perfume to heavy-duty machinery, organized retail crime is hitting stores and shops from coast to coast. The National Retail Federation (NRF) estimates these crime sprees represent more than $112 billion in retail sale losses in 2022 alone.

Congresswoman Kim Schrier says these crimes often don’t involve local criminals but organized retail crime gangs. On Capitol Hill, she’s of several Democrats and Republicans pushing for the Combating Organized Retail Crime Act, which would increase federal support to try to tackle these issues.

It would also create a Department of Homeland Security center dedicated to coordinating federal law enforcement efforts to fight these types of crimes. Congresswoman Schrier said she wants to see tougher penalties for these crimes that are already changing how we shop nationwide.

Federal law enforcement agencies say these crimes can directly affect shoppers too. Between the stolen merchandise and heightened security measures, the average family may pay $500 dollars a year in additional costs.

Currently, Operation Boiling Point is Homeland Security Investigations’ (HSI) response to organized theft groups profiting from organized retail crime. According to Homeland Security, this division has 7,100 special agents and “relies on task force officers from federal, state, and local law enforcement agencies to combat transnational criminal organizations.”

This legislation isn’t the only effort to try to crack down on these crimes.

The National Retail Federation says at least 32 states have passed their own laws as well. But with incidents crossing state lines, the organization reports 87% of retailers surveyed say a federal law is still needed. wftv.com


California's Fight Against ORC Is Paying Off
Investments to combat organized retail theft lead to arrest of 10K+ suspects
California’s largest-ever single investment to fund local law enforcement efforts to combat retail and property crime continues to pay off. Today, the state reported that law enforcement agencies that received Organized Retail Theft grants have used the Governor’s investments totaling more than $267 million to make 10,138 arrests and to hire additional law enforcement officers and staff.

Real results to combat theft

Through a $242 million state investment, 31 city police departments and seven sheriffs’ offices have increased arrests by 46% in the recent quarter, bringing total arrests to 10,138 suspects, including nearly 8,000 for organized retail theft. Additionally, 8,736 cases were referred for prosecution, while agencies hired new staff, implemented data collection tools, and reviewed racial bias policies for surveillance practices. The ORT Vertical Prosecution Grant, providing $24.8 million to 13 district attorneys’ offices, has led to charges against 1,643 organized crime suspects, with 467 people convicted so far.

Stronger enforcement. Serious penalties. Real consequences.

This follows Governor Newsom’s recent signing of the most significant bipartisan legislation to crack down on property crime in modern California history. Building on the state’s robust laws and record public safety funding, these bipartisan bills establish tough new penalties for repeat offenders, provide additional tools for felony prosecutions, and crack down on serial shoplifters, retail thieves, and auto burglars.


More officers. More enforcement.

The Governor’s investments in public safety are producing strong results. Last year, the California Highway Patrol reported an annual 310% increase in proactive operations targeting organized retail crime, and special operations across the state to fight crime and improve public safety. And since January 2024, CHP’s Organized Retail Crime Task Force is on track to surpass the work in 2023, making 1,123 arrests and recovering more than $8 million worth of stolen goods. Though the year is still ongoing, the CHP has already surpassed the total investigations of any prior year and made more arrests than any year prior to 2023. Since the task force’s inception in 2019, the CHP has arrested more than 3,200 suspects, recovered over 880,276 stolen items worth over $46 million, and conducted 3,045 investigations.

Agencies taking down crime statewide: gov.ca.gov
 

Newsom Calls Prop 36 a 'Lazy Response to a Serious Issue'
Gov. Newsom touts California's retail theft effort, restates opposition to heavily favored Prop. 36
After a visit across the state’s border with Mexico, Gov. Gavin Newsom touted California’s efforts from the past year to tackle organized retail theft and other property crimes that have driven overwhelming support for a ballot measure that would toughen penalties for theft and drug crimes.

The two issues are inextricably linked, as Newsom and his legislative allies have recently passed a package of anti-theft bills to undercut the purpose of Proposition 36, perhaps the most prominent statewide voter initiative on the Nov. 5 ballot

In a virtual news conference Monday, Newsom highlighted the latest results of a $267 million funding blitz for state and local law enforcement to tackle property crimes, including the organized retail thefts and smash-and-grab thefts that have captured wide attention through in countless viral videos. To date, the effort launched in September 2023 has yielded just over 10,000 arrests for retail, auto and cargo theft cases, according to Newsom’s office and the California Highway Patrol.

But the broader direction of the news conference, once reporters were allowed to ask Newsom questions, pivoted back to Proposition 36, the ballot measure that aims to drive down serial theft by undoing the $950 threshold for a theft to be charged as a felony, and stiffen punishments for drug dealing that has fueled the fentanyl and opioid crises. It also would revive a drug court infrastructure that provides those arrested for certain kinds of drug possession with the choice to enter court-monitored rehab or face up to three years in jail.

The measure is receiving around 70% support from California voters according to multiple polls released over the past month, and looks headed toward a comfortable passage next Tuesday. Newsom acknowledged as much Monday, referring to “the prevailing wind,” but reiterated his opposition to the measure, calling it “a very lazy response to a serious issue and a complicated issue” that encompasses drug abuse and homelessness. gazettextra.com


Another California City Wages War on ORC & Violent Crime
Authorities begin surge operation to combat crime in San Bernardino

The operation aims to crack down on organized retail theft and violent crime.

A new surge operation to combat violent crime in San Bernardino started on Monday. San Bernardino has a violent crime rate nearly double the statewide average and a homicide rate over three times the average, according to the state. The city is Newsom's latest target in a year-long push to reduce crime.

“We are sending additional CHP support to help local law enforcement aggressively suppress criminal activity and provide this community with a new level of safety and accountability,” Gov. Gavin Newsom said in a statement.

The governor also says the state's focus on retail crime is seeing results, as well. The 38 cities and counties that received $267 million dollars in "Organized Retail Theft grants" have made 10,138 arrests so far, of which nearly 8,000 were for organized retail theft.

"This year, our City Police Department’s efforts have led to a 13% reduction in violent crime,” San Bernardino Helen Tran said. “And the extra support will strengthen public safety in our community. nbclosangeles.com


Newsom discusses efforts to crack down on retail theft in California

How the perception of crime, not data, could sway New York voters
 

Over 2,000 Store Closures in 2024
Why so many retail stores are still closing

For many retailers, business is still tough, but the environment may be turning.

This year, 13 major companies have said they will shut down more than 2,000 stores around the country. That's on top of 4,548 in 2023, 3,818 in 2022, 5,228 in 2021 and nearly 9,700 in 2020. And there are more beyond that: small companies with just a few stores or maybe just a neighborhood mom-and-pop operation.

The forces driving these closures fit into one or more buckets, including:

• The Covid-19 pandemic. It's the public-health-infused socioeconomic crisis that keeps on giving. Retailers were body-slammed in 2020 into 2021 by the Covid-generated slump. But the pandemic is also responsible for many continuing closures.

• Inflation. Yes, inflation has been a problem. Freight rates jumped as Covid-19 eased and life resumed. Rising fuel and energy costs cut into profit margins. Labor costs, in many cases, have risen faster than sales. As important, many customers have been telling economic researchers (and politicians) they must cut back on personal spending. Retailers, hit by higher financing costs on inventories, are forced to cut prices to keep shoppers, but that guts profit margins.

• Changing shopping patterns. Online shopping now accounts for at least 15% of all U.S. retail sales, according to CapitalOne data, and may double by 2030. Online now includes far more than Amazon.com (AMZN) . Walmart (WMT) , Target (TGT) , Costco (COST) and others are investing in their online capacities. Shopping malls have been struggling for years in part because shoppers have been moving or changing buying habits. Big chains would rather run stores near their customers.

• Intense competition. If you own a small bookstore, your problem is the Amazon effect: A shopper comes into your shop, sees a book of interest and orders it online. That, of course, is just a piece of the competitive challenge. High-end retailers are struggling to find goods that high-end customers want. A bigger problem: Big-box retailers have been revamping stores and cutting prices (thanks to better terms from vendors). That undercuts the profit margins of smaller operators.

• Too many stores. An uncomfortable truth is that by 2018 U.S. retailers occupied 23.5 square feet per person, the most in the world. Canada and Australia were second and third at 16.8 square feet and 11.2 square feet, respectively. Then, the pandemic erupted.  thestreet.com
 

The Lasting Business Impact of the Pandemic
Restaurants made big changes to cope with the pandemic. Lots of them have stuck.

From QR code menus to self-ordering kiosks, a couple of pandemic-driven changes have actually stuck in American restaurants.

1. The QR code revolution: The use of QR codes in restaurants surged during the pandemic. First introduced to replace paper menus, they have now become commonplace.

2. Cleaning out in the open: You may have noticed some restaurants are now a lot more keen to show just how clean they are. "After COVID, it not only became more acceptable but even encouraged to visibly showcase the level of cleanliness."

3. A whole lot of waste: Many cafés appear to have retreated from efforts to promote the reusable cup. Before the lockdowns, great strides were being made to discourage disposable utensils.

4: Self-service kiosks are everywhere: Self-service kiosks have found their way into restaurants, grocery stores, and even furniture retailers. This was already a trend, but it accelerated during the pandemic and has continued in the US since.

5. The turn toward takeout: Food delivery services became a go-to during the pandemic — this hasn't entirely changed. This brought about a pivot to how we eat non-home-cooked meals.

6. Less experienced workers: "Restaurant closures during COVID lockdowns encouraged a lot of seasoned hospitality workers — from cooks to waiters — to find employment in other industries," King said. "They took decades worth of institutional memory with them," she added. It doesn't help that there's a shortage of workers in the hospitality industry. businessinsider.com
 

444 Closures, 500 Openings
7-Eleven To Close 444 Stores, Open 500 New Stores, and More
Seven & i Holdings Co., Ltd. has released a presentation outlining its future plans. By 2027, the company plans to enhance its commissary network, aiming for approximately 45% store coverage with 16 new commissaries and 16 bakeries across its Virginia and Ohio distribution centers, which service 1,352 and 1,108 stores, respectively.

Furthermore, Seven & i is set to construct 500 new stores from 2025 to 2027, further enhancing its store network while supporting proprietary products, digital services, and streamlined operations. This strategic growth underscores the company’s commitment to meeting evolving customer needs and driving traffic to its locations.

The company has outlined a comprehensive long-term plan to expand store coverage across key regions, including Southern California, Florida, and Ohio, with targeted operations beginning in 2024. Sales from commissaries have become an integral part of the fresh food business, contributing 14.5% in the second quarter of 2024, with significant growth observed in Texas and Virginia. retailwire.com


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