CONTROLTEK Facilitates Two-Day Design Thinking Workshop at Rite Aid Innovation Center

CONTROLTEK, a global leader in tamper-evident packaging, retail asset protection and RFID inventory and asset tracking solutions recently collaborated with Rite Aid to facilitate a transformative Two-Day Design Thinking workshop at the Rite Aid Innovation Center. The event brought together Rite Aid's Asset Protection (AP) teams and industry solution providers to collaboratively address challenges and explore innovative solutions for creating safer and more enjoyable shopping environments.

Hosted at the Rite Aid Innovation Center, this Design Thinking Workshop aimed to encourage creative problem-solving and foster a collaborative spirit among industry professionals. Rite Aid, a trusted and well-established pharmacy-led health and wellness company, extended invitations to its solution providers and their AP team to engage in a dynamic exploration of challenges faced within their stores.

Read more in today's Vendor Spotlight column below
 

Stores are 'Stocked, Locked & Loaded'
NYC retailers embrace 'wild, wild west' tactics to fight violent thefts

NYC bodega owners, grocers arming themselves with guns amid violent thefts plaguing Big Apple
Hundreds of Big Apple supermarket and bodega owners are arming themselves as the epidemic of violent theft continues to plague their businesses.

Over the past year, the United Bodegas of America and the Bodega and Small Business Group said they’ve helped at least 230 store owners apply for their gun licenses, connecting them with concealed-carry classes required by the state to obtain a permit.

The National Supermarket Association, which represents roughly 600 independent grocers, estimated a quarter of its members in the city are packing heat, compared to 10% pre-pandemic.

“You see the necessity because the city is getting out of hand with the crime rate,” said one supermarket owner. The gun-toting grocer said he hasn’t had to use his firearm, but practices once a week for the worst-case scenario where he needs to defend himself and his staff.

Many grocers have felt an increasing need to arm themselves partly because of slower police responses to their emergency calls, according to retired NYPD Sgt. Johnny Nunez.

The surge in gun-toting grocers follows the Supreme Court’s landmark decision last year to strike down New York State’s century-old law, which severely restricted who could carry handguns in public by requiring applicants to show “proper cause” for needing the weapon beyond general protection.

An NYPD spokesperson said robbery and grand larceny incidents have shrunk 5.2% and 3.1%, respectively, through Nov. 26 compared to the same time period last year. Robbery and grand larceny arrests have increased by 11% and 18% so far this year compared to the same time period in 2022. nypost.com


Study that Downplayed Shoplifting in Big Cities May Be Misleading
'The impulse to dismiss shoplifting as no big deal is wrong.'

Op-Ed: The real loss of shoplifting: Why America’s ‘great rip-off’ hurts everyone
The impulse to dismiss shoplifting as no big deal is wrong. A mass shoplifting problem is evidence of societal decline and degradation.

There’s an urge by media outlets and liberal activists to downplay shoplifting and massage statistics so they don’t seem quite so bad and to keep following criminal-first prescriptive policies that are obviously failing.

A New York Times newsletter from a few days ago cites numbers from the left-wing Council on Criminal Justice, which examined shoplifting in 24 cities, noting, “Overall, shoplifting incidents were 16% higher in the first half of 2023 than the first half of 2019. When New York City is excluded, however, reported shoplifting incidents fell over the same time period.”

But why exclude New York City? Is it because the same Council on Criminal Justice study found a whopping 64% spike in shoplifting since 2019?

The other cities on the list may bring down the country’s average but they themselves are cherry-picked. Chattanooga, Tenn. — pop. 182,113 — is on the list but Syracuse (pop. 146,103), which is experiencing a 55% increase in shoplifting since 2019, doesn’t make it.

San Francisco somehow shows a 5% decline in shoplifting yet businesses are fleeing the city.

Target is closing three stores in the area, citing “theft and organized retail crime . . . threatening the safety of our team and guests, and contributing to unsustainable business performance.” Maybe they know something the study does not.

A CNN story from earlier this month also used the same study to downplay crime and portrayed shoplifting as part of some “counterculture” that “many on the right and some Democrats have exploited to oppose criminal justice policy reforms.” nypost.com

   Related Coverage of the Council on Criminal Justice Study

   • Shoplifting is declining in the Twin Cities, latest data show

   • How bad is retail theft in S.F.? New reports show what could be a key shift


Another New Crime Trend Impacting Retailers
Robbers attacking delivery trucks: New vulnerability to all-important online sales
Robbers, some of them armed, have attacked delivery trucks, threatened drivers and stolen merchandise in several U.S. cities in the past few weeks, adding a new woe to retailers’ growing lists of concerns as the holiday shopping season officially kicked off last week with Black Friday sales.

Big store chains are already battered by losses from rising store thefts by organized crime rings that have prompted store closings in many cities, and nervous about the spending power of inflation-scarred, recession-wary consumers. These delivery-truck attacks are more than bad PR. They have exposed new vulnerability to all-important online sales, which depend on reliable delivery services.

The industry can ill afford this lump of coal in its stocking. A new survey from the National Retail Federation (NRF) showed losses from theft – called shrink – rose to US$112.1-billion in 2022 from US$93.9-billion the previous year. Further, 67 per cent of respondents said they see more violence and aggression related to organized retail crime.

The rising costs of security measures will drive up prices, too, and qualified labour – already in short supply – will cost more to hire, retain and protect. The ripple effect will be felt all the way down the value chain.

This new breed of sociopath behind the truck attacks goes beyond so-called porch pirates, the cowardly losers who troll neighbourhoods stealing boxes from front stoops when no one is looking. Truck-jackers are bold, brazen and often armed.

Violence toward delivery drivers has risen as consumers have embraced online shopping. Delivery driving is among the deadliest occupations in the country, according to occupational fatalities and injury data from the U.S. Bureau of Labor Statistics. While most deaths and injuries are from traffic accidents, the data also show drivers are more at risk of assaults than other occupations.

The trend is another blow to a retail sector that has struggled in many cities to make stores safer and more secure while keeping the customer experience civil, if not pleasant. For some, that has meant putting more merchandise in locked cabinets, installing high-tech surveillance systems and hiring guards. theglobeandmail.com


Both Consumers & Investors Should Be Worried About America's Theft Crisis
Investors should be worried about U.S. shoplifting problem, retail expert says

An expert says it's problem for investors and consumers, and it could get worse during the holidays.

Retailers in recent quarters say they're losing big money as inventory gets snatched from shelves. The phenomenon of "retail shrinkage" has caught the attention of Wall Street investors, who have probed the issue, but are likely not nearly as concerned about it as they should be, an expert told Business Insider.

"I think it is a problem, and it's starting to have a tangible impact on performance, especially in terms of profitability," Neil Saunders, the managing director of GlobalData's retail consulting unit, told Business Insider. "I think investors should be concerned about it."

Even for concerned investors though, hard data on the phenomenon and its costs are hard to come by. Companies are tight-lipped over how much they're losing, and rarely ever issue concrete guidance over how much they expect shrink to impact earnings, especially when it comes to theft.

Some data like profit margins and costs can offer clues to just how much shrinkage has impacted businesses. When picking retailers less susceptible to theft, investors can look at stores that have a large shop floor presence, such as Best Buy and the fortress-like Costco, which tends to deter shrink from theft.

Theft is likely to increase into the holiday season. As stores load up on inventory and draw huge crowds of customers, it'll be easier for shoplifters to go by unnoticed, Saunders said.

It could add to the barrage of other pressures retailers are facing into the end of the year, especially as questions arise over how much gas US consumers have left in the tank amid higher borrowing costs and depleted pandemic savings.  markets.businessinsider.com

 
The Gap Between Crime Data & Public Fears
Violent Crime Is Down. Here’s Why More People Feel Victimized.

Important gaps exist between how the FBI measures serious offenses and what people experience

In October, the Federal Bureau of Investigation’s annual report showed violent crime in 2022 fell to its relatively low, prepandemic level. Yet in November, Gallup reported that a record-high 63% of U.S. adults said the “crime situation in the U.S. is extremely or very serious.”

This seems to suggest that either the crime data is wrong or people are unrealistically negative. There is another possibility: More people are experiencing crime, but it isn’t captured in FBI measures.

“There has long been a mismatch between public perception and reality on crime,” said Ames Grawert, senior counsel at the Brennan Center for Justice, a liberal-leaning legal-policy institute. “But it’s understandable that people would be worried about crime today and we have to take them seriously.”

When you look at how the crime statistics come together, it shows that violent crime can fall and people can simultaneously experience more crime.

An even more important caveat is that violent crimes reported to the police almost certainly undercount actual crimes experienced by people, and trends in the two can diverge. wsj.com
 

Self-Checkout Throwing Fuel on the Fire?
Theft With Self-Checkout Amounts to 3.5% of Sales: Report

Grabango study finds tech option increases losses 16 times over traditional cashiers

With retail shrink resonating as one of the biggest concerns these days for convenience and grocery stores, a new report suggests that the growth of self-checkout is making matters worse.

While acknowledging the role of organized crime, recent research from checkout-technology company Grabango shows that self-checkout machines are a significant driver of shrink, with losses amounting to 3.5% of sales, or more than 16 times more loss than traditional cashiers.

Retail shrink costs U.S. retailers $100 billion a year. Shoplifting and employee theft account for two-thirds of this amount, the report states, while internal process/control errors account for most of the rest.

At self-checkout units, partial shrink is the most common and costly form of shoplifting, where a shopper pays for some of their purchase, but not the full amount. For example, a shopper might have three cans of soda but only scan two of them, or might type in a code for a lower-priced item.

This analysis revealed self-checkout led to a shrink rate more than 16 times higher than traditional cashier lines. Nearly 7% of self-checkout transactions (6.7% ) had at least some amount of partial shrink compared to 0.32% with cashiers. On a revenue basis, the analysis suggested a shrink rate of 3.5% for self-checkout machines versus only 0.21% for conventional cashiers, according to the results of the analysis.

According to FMI, self-checkout accounted for just under 30% of total transactions in 2022. Based on a market size of nearly $1 trillion and a partial shrink rate of 3.5%, self-checkout machines cost food retailers more than $10 billion in lost profits annually, Grabango said. cspdailynews.com


How California officers are cracking down on organized retail crime
Law enforcement is stepping up efforts to fight brazen acts of organized retail thefts. CBS News' Carter Evans got exclusive access to the frontlines in Los Angeles, as officers work tirelessly to crack down on organized retail crime.

Anti-theft device drops fog into stores - but could it negatively impact shoppers?
A new anti-theft measure aims to halt thieves in their tracks – but it might disrupt customers in the process. The device drops fog into stores in an effort to cloud a shoplifter's vision and exit path should they try stealing from a retailer.

How Connecticut stores are doing about 'unprecedented levels of theft'

Is a recent surge of organized theft rings fact or fiction?