Stream Episode 6 Now!
'Retail Crime Uncovered' Podcast Presented by Sekura Global

Prof. Adrian Beck on self-service checkouts: efficiency, effectiveness and loss

In this episode, Emmeline Taylor, Professor of Criminology, talks to retail crime guru, Professor Adrian Beck, who has over 30 years experience researching and consulting on retail crime, security and loss. In a week that has seen one British supermarket announce it's giving up on self-service machines ("rather than artificial intelligence, we're going for actual intelligence") and the Chairman of Marks and Spencer stating that the middle classes are increasingly stealing when using SCO, Emmeline and Adrian discuss the effectiveness, efficiency and losses associated with self-service across the industry.

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San Francisco Stores Shift to 'Defensive Retailing' to Fight Theft
Stores in crime-riddled San Francisco abandoning self-checkout lanes to combat thefts: report
Retailers in crime-riddled San Francisco are abandoning their self-checkout lanes in a "defensive retailing" move to counter surging thefts in the city.

A Safeway supermarket in San Francisco's Fillmore District and a Target on Mission Street closed their self-checkout kiosks to customers - a change that other stores across the troubled city may follow, SFGate reported.

Retail thefts and organized "smash-and-grab" robberies in the Golden Gate City - and major cities across the country - have skyrocketed in recent years, forcing many major stores to shut down certain locations.

Target blamed crime for shutting down three stores in San Francisco in September, according to SFGate. In 2021, Safeway said rampant thefts forced a city location to cut employees' hours.

There have been 29,739 cases of larceny and theft in 2023 - significantly down from 2022 when 61,715 were reported, according to the latest data from the San Francisco Police Department.

In response, retailers have had to adapt, which may wind up making shopping ultimately more difficult, Conway told SFGate.

"All the things put in place to reduce friction are now being put back," Conway said. "I can buy whatever I want on my phone, but now when I want to go to a store to buy it, it's harder.

"It's difficult to make a direct correlation, but I think in San Francisco it's getting to the point that you are seeing stores closing, which is the ultimate form of defensive retailing," she said. nypost.com


Self-Checkout is on the Chopping Block as Retailers Fight Theft
Dollar General follows Target and Walmart in anti-theft move

The discount retailer has made a big change designed to cut down on shoplifting.

Dollar General rolls back self-checkout

To compensate for having limited staffing, Dollar General has embraced self-checkout. That has led to an increase in the theft at the chain's 17,000-plus U.S. locations.  CEO Todd Vasos, who recently took the chain's CEO job back from Jeff Owen, has decided to roll back the chain's self-checkout efforts.

"We plan to increase the employee presence at the front end of our stores and in particular, the checkout area. While self-checkout has contributed to the convenience proposition for our customers in certain stores, it does not reduce the importance of a friendly, helpful employee who is there to greet customers and assist while the checkout process is happening," he said during the company's third-quarter earnings call.

This is a big change for Dollar General

Those comments come just three months after Owen had bragged about the chain's implementation of self-checkout. "We have simplified operations by optimizing our container delivery and rolling out the self-checkout option, which was available in nearly 14,000 stores at the end of Q2," he said during the second-quarter earnings call.

Vasos believes the change will help the company cut down on theft. It does not plan to fully drop self-checkout.  thestreet.com

RELATED: Dollar General is having its own self-checkout reckoning


Rampant Theft is Pushing Retailers Into a Time Machine
Bloomberg Opinion: Retailers Step Back Into Time to Stop Theft

Asking a store clerk to retrieve goods from behind glass was a typical shopping experience until the early 20th century when the supermarket chain Piggly Wiggly changed everything.

Brick-and-mortar retailers have a shoplifting problem. At least, that's the vibe in retail circles these days, with talk of an "epidemic" of theft as shoppers pilfer goods at an alarming rate. Whether real or simply a "moral panic," the belief that store shelves will soon be stripped bare has prompted some retailers to lock up their goods, forcing shoppers to consult a clerk first.

If everything eventually gets put away, we'll all get a taste of how our grandparents used to shop. Until the early 20th century, shopping was an introvert's nightmare. When someone walked into a grocery or a dry-goods store or clothier, they would be greeted by a storekeeper or, in larger establishments, an army of clerks.

Clarence Saunders, an American grocer, overturned this model with a novel idea: the self-service store. Fewer people working equaled less money being spent. In 1916, he opened a grocery store that he called "Piggly Wiggly." Though it may not have been the first of its kind, it was by far the most influential.

Over the past 50 years, there have been periodic panics that shoplifting might somehow render the self-service shopping model obsolete. The 1970s, in particular seem to have been the last major "epidemic" of shoplifting, part of a larger anxiety about rising crime - real or imagined - at the time.

Still, previous efforts to combat the problem - plainclothes guards, magnetic tags, and cameras - didn't challenge self-service retail. Now, though, the growing tendency to force shoppers to consult a sales associate marks a return to an older method of shopping, even if it's being driven by contemporary concerns. bloomberg.com


Lawmakers Push Federal ORC Legislation
Arizona Rep. Ruben Gallego Pushes for Action to Fight Organized Retail Crime
PHOENIX, AZ - Rep. Ruben Gallego (AZ-03) called for action to combat organized retail crime - the coordinated, large-scale theft of retail merchandise with the intention to resell that merchandise for financial gain - and touted his efforts in Congress to protect Arizonans and end these crime rings at a press conference today.

"During the holiday season, Arizona families rely on grocery, drug, and retail stores more than ever," said Rep. Gallego. "Organized retail crime reduces choice for consumers, puts workers in harm's way, and hurts our economy. That's why I'm fighting to ensure the federal government steps in to break up these crime rings and help state and local law enforcement on the ground."

Joining Rep. Gallego at the press conference was leadership from the Arizona Chamber of Commerce & Industry, the Arizona Retailers Association, and the Maricopa County Attorney's Office.

"Organized retail crime and illicit trade are becoming a real and growing threat to Arizona businesses, workers, and taxpayers," said Danny Seiden, President and CEO of the Arizona Chamber of Commerce & Industry.

In October, Rep. Gallego announced his support for the bipartisan Combating Organized Retail Crime Act, legislation to empower federal law enforcement to address organized retail crime groups targeting American businesses and consumers.

He previously sent a letter to Attorney General Merrick Garland and FBI Director Christopher Wray requesting their agencies increase efforts to re-prioritize and counter an alarming rise in organized retail crime nationwide. rubengallego.house.gov

RELATED: Gallego: Organized retail crime in Arizona 'forcing stores to close'


New State ORC Unit Ramps Up Fight Against Criminals
The fight against organized retail crime heats up in Washington
A Washington state unit focused on organized retail crime filed its first case last month, charging a 33-year-old Bremerton man with 11 thefts totaling more than $50,000 from Target stores in Kitsap and King counties. The unit within the state Attorney General's Office was created this year with the aim of curbing organized retail theft.

Retailers are legitimately afraid that too many reported incidents could cause them to lose their insurance, according to Mark Johnson of the Washington Retail Association.

But, he said, it's critically important for retailers to report thefts anyway because the criminal justice system increasingly depends on data analytics for law enforcement funding and successful prosecutions.

Zoom in: By one measure, Washington state has one of the highest retail theft problems in the nation, according to an online survey commissioned by Forbes Advisor of small business owners with a brick-and-mortar store.

What they're saying: These crimes hurt Seattle businesses, said Rachel Smith, president and CEO of the Chamber of Commerce, because of "compromised ability to attract and retain employees and customers" as well as increased costs to ensure their safety.

What we're watching: State and federal legislators are considering bills to combat retail crime, said Johnson, including one that would provide funding to small businesses for loss prevention tools such as cameras and lighting. axios.com


Another State Pushes for Tougher Theft Penalties & Funding
Ohio Chamber task force pushing for changes in state law to fight retail theft
In the middle of the busiest shopping season of the year, an Ohio Chamber task force on Friday released recommendations meant to crack down on organized retail theft.

The recommendations include changes in state law that would make it easier to charge thieves with crimes that carry stiffer sentences and getting the legislature to funnel more money to the attorney general's office to help local prosecutors try cases of retail theft.

The chamber formed the task force last June to study how crime affects public safety and come up with solutions following a survey that found 62% of Ohio businesses say crime has kept them from expanding.

The Ohio Council of Retail Merchants plans to introduce legislation, called the Fight Organized Retail Crime & Empower Law Enforcement Act, that also is meant to attack the problem.

The group has estimated that retail theft translates into losses of $2 billion to $3 billion a year for retailers. dispatch.com


NRF Calls ORC a 'Serious Problem' Despite Data Retraction
Retailers on Claims of a Growing Theft Problem: Never Mind

An industry group retracted a claim that organized retail crime accounted for nearly 50% of merchandise loss in 2021 as analysts question if chains are overstating the problem

"We stand behind the widely understood fact that organized retail crime is a serious problem impacting retailers of all sizes and communities across our nation," the group said statement in a statement. "At the same time, we recognize the challenges the retail industry and law enforcement have with gathering and analyzing an accurate and agreed-upon set of data."

Mary McGinty, a spokeswoman for the federation, told the Times that the error was caused by an analyst from the advisory firm K2 Integrity, which helped prepare the report. themessenger.com


Small Businesses Invest in Security Cameras & Staff
The majority of small business owners prepared for theft this holiday season
According to a study done by Forbes Advisor, more than half of small business owners across the country expect theft this holiday season.

"I'm sure we're a bit more targeted probably, we don't have the security that a big box store might have. But we up our staff this time of year because it's just busier and it helps out that way," said Jenni Campbell, vintage dealer at Flower Child.

Security cameras and more staff on the floor keep the shopping experience enjoyable for everyone. news5cleveland.com


CNN Video: Why retailers don't do more to prevent shoplifting
Why don't retailers do more to prevent shoplifting? "There is no merchandise in the store more valuable than the safety and well-being of the employees and the guests in the store," says Brian Dodge, President, Retail Industry Leaders Association. But without much law enforcement, online fencing of stolen goods is booming.

Oakland Chinatown merchants to ask for more reporting, police foot patrols
Oakland Chinatown business owners are frustrated and speaking out after a series of armed robberies, burglaries and break-ins in recent weeks.

Modesto Police Department amps up resources to tackle organized retail theft

Topeka Police Department warn residents about organized retail thefts in Capital City