Shoplifting Continues to be a Challenge for Home Depot
Home Depot says shoplifting challenges aren't getting any easier

CFO Richard McPhail said the operating environment is "getting harder and harder."

Shoplifting and organized retail crime was a dominant story in retail last year. While the issue hasn't made as many headlines this year, Home Depot said the issue hasn't gone away. "This is a problem for all of retail," CFO Richard McPhail said Tuesday during the company's third-quarter earnings call. "It's hard to quantify."

"Our investments are paying off," he added. "That does not mean that the operating environment is getting any easier. In fact, it's getting harder and harder." In other words, casual shoplifters and organized criminals continue to be a thorn in Home Depot's side - they're just better handled now, according to the CFO.

The company said its anti-shrink efforts improved profit margin for the quarter by nearly half a percentage point. Home Depot did over $40 billion in sales last quarter. "It's an everyday initiative that our teams are fighting every single day," McPhail said.

Home Depot has been both a prominent target and opponent of organized retail theft in recent years. The company's VP of asset protection, Scott Glenn, previously told BI that the company wanted to strike a balance between securing merchandise and allowing customers to get what they need.

One solution to the puzzle: power tools that don't work unless activated at the point of sale. Glenn also highlighted at the time the difference between solo thieves and "professional shoplifters," which he said are often connected to a larger network.

In September, the company highlighted some of its ongoing efforts to address retail crime in its stores, including its support for federal legislation that would help centralize and coordinate an interstate response. businessinsider.com


Another Statewide Push to Take on Shoplifting Rings & Repeat Offenders
New Jersey Assembly panel to consider toughening penalties for shoplifters

Lawmakers seek boosted penalties for shoplifters amid post-pandemic rise, but advocates warn steeper sentences unlikely to deter crime.

Assembly lawmakers will weigh heightened penalties for shoplifters and new restrictions on gift card sales on Thursday amid a recent rise in retail theft.

The bipartisan bill before the Assembly Public Safety and Preparedness Committee would enhance penalties for leading shoplifting rings, allow extended sentences for repeat offenders, and elevate assaults against retail workers to a more serious charge, among other things.

The legislation would allow extended sentencing for individuals convicted of shoplifting three times in a 10-year period or within 10 years of their release from confinement and upgrade penalties for leading a retail crime ring to carry between 10 and 20 years' imprisonment.

It also allows law enforcement to aggregate the cost of goods stolen by suspects within a year, allowing prosecutors to levy more serious charges against serial shoplifters regardless of previous convictions.

The bid to raise penalties comes amid a recent spike in thefts following the pandemic. In 2023, law enforcement agencies reported 102,724 instances of larceny, up from 91,942 in 2019 and a pandemic slump that generally brought crime down overall in 2020 and 2021, according to crime statistics maintained by the FBI. yahoo.com

   RELATED: New Jersey must combat organized retail crime


Retail Worker Safety Survey Makes More Headlines
U.S. Retail Workers Cite Increased Safety Concerns Ahead of Holiday Shopping Season

Researchscape conducted the U.S. Retail Worker Safety survey to gauge retail workers' perspectives about safety and workplace security.

A majority of American retail workers (57%) report feeling unsafe going into the peak holiday shopping season, according to Motorola Solutions' second annual U.S. Retail Worker Safety Report.

Many of the 1,000+ retail managers and staff surveyed said they have experienced increases in various forms of crime in the last year, and more than half reported concerns about hostile customer interactions and store theft.

The independent market research firm Researchscape conducted the U.S. Retail Worker Safety survey in September 2024 to gauge retail workers' perspectives about safety and workplace security measures. The results "show that security technologies - systems that can detect weapons, lock doors and allow store security officers to view real-time video of unfolding incidents - make people feel safer at work."

Similar independent Retail Worker Safety surveys were conducted in the U.K. and in Australia and New Zealand, countries also dealing with high retail crime rates.

"As we approach peak shopping season, it's clear that the retail industry continues to grapple with theft and, at times, even more violent crimes," says Sharon Hong, vice president of Ecosystem Solutions at Motorola Solutions, in the company announcement. securitysales.com


Cargo Theft Surge Driven by California Incidents
California accounts for nearly half of all cargo theft incidents in Q3
New data shows that cargo theft incidents have continued to increase through the third quarter of 2024.

According to a recent report from Overhaul - an Austin, Texas-based supply chain risk management company - a total of 500 thefts were recorded from July through September, marking a 6.2% increase from the previous quarter. The company estimated an average loss per theft of $176,290.

Those numbers also eclipsed the third quarter of 2023, up 7% year-to-year. That increase is of note, considering the volume of theft that occurred in the third quarter of last year. Data from Overhaul showed that 486 cargo theft incidents were reported over that span in 2023, a 177% increase from 2022.

In terms of what thieves were targeting, electronics took the No. 1 spot, accounting for 30% of all reported incidents in the third quarter.

"As cargo theft in the US continues to grow, shippers must be aware of the country's unique risks," the company said in a statement. "We hope our report helps keep your cargo secure as you navigate new and evolving threats throughout the rest of the year and beyond."

Going forward into the fourth quarter of the year, Overhaul anticipated the total number of thefts would continue to rise, with organized crime rings driving much of that increase. Recently, the group warned carriers about crews operating in Chicago and Los Angeles. landline.media


Retailers Walk a Fine Line Between Fighting Theft & Angering Shoppers
Walmart and other retailers apply stronger measures to battle theft
Walmart and other retailers have adopted stronger measures to cut down on theft in their stores, a problem that continues to eat into their profits. Some efforts, such as cutting back on or eliminating self-checkout, have riled customers.

Another controversial measure that retailers such as Walmart, Walgreens, CVS and Target use to thwart would-be shoplifters is keeping merchandise such as shampoo, mouthwash and underwear locked in display cases that only employees with keys can open.

In a recent survey by noncommercial resource guide Consumer World, 55% of respondents said that if a product they want at a store is locked up, they'd go elsewhere to buy it.

But Walmart Inc. is reportedly testing technology at stores in some locations that could eventually allow its Walmart Plus members to unlock the cabinets themselves through the Walmart app. nwaonline.com


Walmart is already testing its new anti-theft system - The problem is that customers don't know how it works and it is being chaotic

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Common Retail Holiday 'Missteps'
How retailers are making it harder to shop, just in time for the holidays

Thwarting customers, in stores or online, isn't any way to make a sale.

With the holiday season underway, retailers are tapping their marketing budgets to entice shoppers to spend at their stores and online. At the same time, though, they are making mistakes that are keeping customers away. Here are retailers' most common missteps in merchandising and store operations.

Getting the merchandise

Many retailers are making it difficult for their customers to obtain what they're trying to sell. An obvious example of this is the locked-up products that consumers are increasingly finding at stores, mostly at drugstores and mass retailers. A great majority of shoppers - 62% - say they'll wait for a store employee to help them, but more than a quarter say they will give up on their purchase or go elsewhere, according to recent Numerator research. Those unwilling to wait for assistance spend 21% of their dollars online compared to 18% for those who waited.

Fostering discovery

People who shop online are there primarily for convenience, while those who head to stores expect a certain level of merchandising, according to research from Jonathan Zhang, professor at Colorado State University's College of Business. Research from Zhang and others indicates that curating merchandise and providing good customer service in store have helped protect local retailers like independent booksellers from Amazon's fierce competition.

Customer service

More than 40% of consumers surveyed by Theatro, which supplies tech for frontline workers, described shopping in stores as "less enjoyable" than before the pandemic, and 60% of them pointed to poor staffing levels. This hurts the top line, according to GlobalData Managing Director Neil Saunders, who has monitored a dearth of staff and customer service at retailers like Macy's and Nordstrom. retaildive.com


'Serial Returners' Banned
Should REI Be Banning Serial Returners?
REI recently confirmed that it was banning a small fraction of frequent returners from making any more exchanges or returns.

The outdoor retailer is known for its customer-friendly return policies, allowing returns for a replacement or refund within one year of the purchase date for co-op members or within 90 days for non-members.

REI said in a statement to ABC News that the new return policy exception impacts less than 0.02% of members who demonstrate a pattern of policy abuse, averaging a 79% return rate and $1,400 in used returns per year.

REI said, "We've tried to curb this behavior by some members over the past several years with targeted warnings and probationary periods. Unfortunately, these tactics have not proven effective."

Online shoppers facing bans first gained attention in 2018 when dozens of shoppers took to social media to complain about being cut off from Amazon, as reported by the Wall Street Journal.

A survey of 200 retail executives in the same year from retail software firm Brightpearl found that 61% of U.S. retailers and 45% of U.K. retailers would ban serial returners from shopping on their websites permanently. retailwire.com


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