Theft is Still Surging - Even if Shrink is Improving
CEOs say shrink is easing, but experts warn retail theft isn't: 'Two different conversations'

Discussions about shrink and retail theft are 'two different conversations,' expert says

David Johnston, National Retail Federation (NRF) vice president of asset protection and retail operations, said there has been a misconception that retail theft has gone down as executives have mentioned decreased shrink in recent earnings calls. "Shrink" is an industry term referring to inventory loss due to employee theft, shoplifting, administrative errors or vendor fraud.

Notably, Target CFO Michael Fiddelke told analysts in August that the company has seen "better-than-expected results in our most recent store inventory counts" and is "expecting shrink costs will be approximately flat to last year."

That same month, Walmart CFO John Rainey said that "within the core merchandise mix, we had a little bit of benefit from improved shrink in the quarter."

Johnston said that discussions about shrink and those concerning shoplifting, organized retail crime and fraud are "two different conversations."

Industry conversations reveal that the "theft situation still continues to plague retailers across all segments" with shoplifting and concerns of violence remaining "at high levels," he added. When CEOs and executives discuss shrink, they refer to their resources and strategies to manage and reduce losses across all categories of shrink, he said.

"You manage your shrink by controlling what you can control and reducing in the areas where you can reduce the losses," Johnston said. "There are some areas where you can do all that. You can still have considerable losses." foxbusiness.com


Progressive Crime Policies: A 'Failed Experiment'?
Experts reveal why Soros-backed policies took beating in deep blue state
The progressive crime agenda, largely pushed by liberal mega donor George Soros, suffered a major defeat in deep blue California this week after voters soundly rejected progressive prosecutors and policies, which experts tell Fox News Digital represents a major sea change.

“I think that this is broader than just a message from people who care about crime,” Cully Stimson, senior legal fellow at the Heritage Foundation and co-author of the book “Rogue Prosecutors: How Radical Soros Lawyers Are Destroying America’s Communities,” told Fox News Digital.

“This is a massive mandate and cry for help from the general population that we want our state back. We want our counties back, and we want our cities back and that our failed social experiments have had enough time, and they’re an absolute, abysmal failure.”

California voters overwhelmingly voted in favor of Prop 36 on Tuesday, which rolled back key provisions of Proposition 47 which was advertised by Democrats in the state as progressive crime reforms that would make the state safer.

But in the last several years, retail chains and mom-and-pop shops have been hit hard by theft, smash-and-grab robberies and organized retail crime gangs, while cities like San Francisco, Oakland and Los Angeles have been ravaged by rises in property crime and retail theft.

Every single county in the state voted in favor of Prop 36, which won by an overall margin of 70.4% to 29.6% with 54% of the votes on Thursday.

“You see all of these Walgreens, the first In N Out Burger to close, all these CVS in downtown San Francisco and L.A closing, these mom-and-pop shops closing because you’re literally telling people you can steal up to $950, and nothing’s going to happen to you,” Stimson told Fox News Digital. “Nobody with an ounce of common sense, left or right, thinks that that is a good idea. That is not reimagining criminal justice. That is a cancer unleashed on society under the fig leaf of reform.”

Progressives suffered another major loss in the city of Los Angeles, where District Attorney George Gascón, backed by Soros, was defeated by former federal prosecutor Nathan Hochman as crime was seen as a top issue of the election cycle.  wfin.com


Walmart's New Anti-Theft Tech Is Pleasing Shoppers
Walmart's new plan to crimp retail theft will delight customers

The retail giant is reportedly contemplating a major change in its quest to stop retail theft.

As consumers' distaste for locked-up merchandise grows, Walmart is exploring the possibility of allowing its shoppers to open security locks for items in stores themselves, according to a new Bloomberg report.

The retailer is allegedly testing technology to allow employees to unlock security cases for products with their cell phones digitally.

Walmart is currently testing this out at hundreds of its stores, and it has discussed possibly expanding the technology to allow Walmart+ members to have a mobile key to access locked-up products.

The move from Walmart comes after Amazon CEO Andy Jassy said during a recent earnings call that many consumers are growing tired of having products in stores locked behind cabinets and flocking towards online services such as Amazon Pharmacy to purchase items.

He said that Amazon Pharmacy is “driving a lot of customer resonance and buying behavior” due to its “speed and ease” that physical pharmacies are starting to lack. thestreet.com

RELATED: Walmart Says Goodbye to Shoplifting Forever with New Technology


More Shops Use Facial Recognition to Fight Repeat Offenders
UK: Gwent shoplifting cases on the rise
Gwent shops are facing a surge in shoplifting cases, forcing them to up their security as they are raided on daily basis. Gwent shoplifting cases have increased by 43% in the last year according to the The Office for National Statistics. This is most out of all the Welsh police areas.

Lawrence Jones-Hughes, store manager at SportsDirect in Newport said: "The shoplifting is dreadful around here." The shop has installed facial recognition cameras to spot repeat offenders. they also have tags on many of their items However, the extra security still does not stop shoplifters.

The manager said it is not only the frequency of raids but what the thieves are stealing, saying: "They used to come for premium skin care items, and razor blades. But now they are taking anything - toiletries, baby milk."

Paddy Lillis, General Secretary of the Retail trade union Usdaw, said: "This increase in shoplifting is further evidence that we are facing an epidemic of retail crime, which is hugely concerning."

Gwent Police are trying to get on top of the situation. "Police services across the country have seen an increase in shoplifting trends, and Gwent is no exception," said Gwent Police Detective Chief Superintendent, Andrew Tuck.

He said: "Theft, and particularly shoplifting, is not a victimless crime; the impact of this offending is felt not only by businesses and retailers, but also the community." uk.news.yahoo.com


California voters send a message by shooting down more progressive policies
Inside deep blue California, voters on Nov. 5 sent a message that progressive politics has reached its limit when it comes to the economy. On key ballot initiatives, voters turned down efforts to raise the minimum wage and allow local governments to impose rent controls while approving higher penalties for organized retail theft. pacbiztimes.com


Local business owners react to Prop 36 passing

Metro Vancouver business owners concerned over rise in retail crime
 

More Retailers Utilizing RFID
Reducing shrinkage in retail: How RFID is making a difference
Here are five ways RFID can help retailers reduce inventory shrinkage and product loss:

1. Boosting inventory visibility and accuracy

RFID technology enhances inventory visibility in real-time. Unlike traditional barcodes that require line-of-sight scanning, RFID tags can be read automatically and simultaneously, enabling more frequent and accurate inventory counts.

2. Thwarting theft with enhanced security

Integrating RFID with surveillance and POS systems allows retailers to monitor items throughout the store. RFID readers placed at strategic locations can detect unusual patterns or items in unauthorized areas, enabling quick and effective security responses.

RFID-based electronic article surveillance (EAS) systems at store exits can even alarm and identify precisely what is being stolen in real time. This integration helps ensure potential thefts can be identified and addressed promptly.

3. Cutting down on administrative errors and fraud

Manual processes can lead to errors, but RFID technology enables retail associates to very quickly locate target items for markdowns, seasonal changes, etc. It also helps retailers hone in on finding and selling the last remaining items, reducing the need for markdowns in the first place.

4. Streamlining return processes and reducing return fraud

Return fraud is a major concern for many retailers. RFID technology improves the return process by providing accurate and detailed information about each product. With RFID tags, each item has a unique sGTIN that can be tracked from the point of sale to the return process.

5. Optimizing supply chain management

Effective supply chain management is crucial for smooth operations, including the reduction of shrinkage as products move through distribution. By enhancing supply chain visibility, RFID enables retailers to track products from the manufacturer to the store shelf.  chainstoreage.com


Retail Industry Responds to Trump's Victory
Apparel and Footwear Industry Responds to 2024 Elections - Seeking Strategic Trade Policies Versus Tariffs on Threads 

The American Apparel & Footwear Association responds to 2024 Presidential and Congressional elections results.

"America has spoken, and we look forward to working with our newly elected, and returning, political leaders in Congress and the Administration in 2025. AAFA members dress Americans and consumers around the world; it is imperative that our elected leaders from across the spectrum unite around smart trade and regulatory policies to keep our industries competitive,” said AAFA president and CEO Steve Lamar.

“Tariff policy under the new Administration will indeed be a challenge and will trigger new inflationary cycles if campaign proposals are fully enacted, making it more expensive for Americans to get dressed every day. We have seen firsthand the negative impact of tariffs ever since the tariffs imposed under the Tariff Act of 1930 helped create the Great Depression. The Section 301 tariffs that took hold in 2018 under President Trump's first term have also remained in place, driving 40-year high inflation for clothes and shoes. Tariffs are taxes paid by U.S.-based businesses and American consumers, not on China or other supplier countries. These tariffs disproportionately harm lower income American consumers and female consumers with higher tariffs on lower priced products and on women's clothes and shoes.

"We will continue to push Congress and the Administration to renew expired and expiring programs, such as the African Growth and Opportunity Act (AGOA), the Generalized System of Preferences (GSP), and the Haiti HELP/HOPE preference program. Immediate and long-term renewal of these measures, combined with a revived trade agreement program, will create predictable opportunities for our industry to diversify and invest, creating American jobs and supporting the provision of affordable and sustainable fashion for American families. We also look forward to initiatives to protect our shipping channels and ports, put a stop to the influx of counterfeit goods across third-party e-commerce platforms, and drive other policies that are not just well-meaning but well-crafted, implementable, practical, harmonized, and ultimately - successful.

"Beyond Washington, our work will continue with elected officials in state capitols around the country, making sure that state regulations are harmonized and effective, and incorporate stakeholder input."  aafaglobal.org


Some merchants moving up shipments ahead of possible tariffs and strike
Another potential East Coast/Gulf Coast port strike and tariff increases proposed by president-elect Donald Trump could cause import volumes at the nation’s major container ports to be higher than previously expected for the rest of this year — and cause major headaches for retailers, consumers and the economy.

That’s according to the Global Port Tracker report released Friday by the National Retail Federation and Hackett Associates. An NRF study found that tariff increases proposed by Trump could drive up consumer prices by as much as $78 billion a year.

With regard to another strike, the International Longshoremen’s Association briefly went on strike at East and Gulf Coast ports in October after its contract with the U.S. Maritime Alliance expired. But longshoremen went back to work after the parties agreed to a wage increase and a contract extension until Jan. 15. The parties are set to resume formal negotiations this week. chainstoreage.com


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Last week's #1 article --

It's Not Just Organized Criminals - It's Everyday Americans
The rise of the Middle-Class Shoplifter

Middle-class Americans are shoplifting everything from tape measures to blocks of cheese.

As much as retailers are quick to point the finger at organized operators for their theft problems, there's another group that gets a lot less lip service: the opportunists, like Carson, who are pocketing things from time to time because they feel like it. These shoplifters have existed forever - adults with decent jobs who are firmly in the middle class. And they're everywhere.

"It's your normal, everyday person, doesn't matter sex, gender, age, whatever, it's just people that see an opportunity and go, 'Huh, I bet I could steal that and nobody would know,'" said Joshua Jacobson, a loss-prevention professional in California who's worked for half a dozen major retailers over the past decade. "They're like a giant organized mob, they just don't know each other."

Shoplifting is illegal, and there are costs to it, even if you don't love the company that's bearing them. Many people find this sort of behavior objectionable and unethical. But after chatting with members of the smallest-time thieves brigade, it was clear that they generally aren't concerned about the moral weight of their actions - they choose to ignore it, or they don't really consider what they're doing as wrong.  businessinsider.com