Police & Prosecutors Agree: Retail Crime Threat is 'Greater Than Ever'
‘Smash-and-grab’ robberies fuel new laws, but critics question the need

A national group retracted its assertion that ORC stole half of missing merchandise, but police and prosecutors say the threat is 'greater than ever'.

According to the National Conference of State Legislatures, Virginia is one of at least 14 states that enacted retail theft laws over the past two years in response to reports of highly organized theft rings invading stores across the country and fleeing, collectively, with billions of dollars in merchandise. Social media posts showing thieves storming retail outlets helped fuel the crackdown.

Nine states passed new laws this year, either toughening punishment or creating task forces to study the potential threats posed by organized theft rings. At least one state — Texas — enacted two laws, one creating a task force and the other allowing potential thieves to avoid prosecution if they agree to an education course designed to steer them away from breaking the law.

In addition to Texas and Virginia, Alabama, Indiana, Minnesota, Nevada, New Mexico, Oklahoma and Oregon enacted retail theft laws this year. California, Florida, Illinois, Louisiana and North Carolina did so last year.

Over the past several years, retailers, prosecutors and police have pushed state and federal lawmakers to crack down on thieves who, they say, have become increasingly sophisticated and violent. Some large retailers have shuttered stores with the largest losses. And shoppers at many stores have had to get used to asking clerks to open locked displays of merchandise vulnerable to theft. Some retailers have directed employees not to pursue shoplifters, out of fear for their safety.

Despite emerging questions over the extent of the losses, law enforcement officers and prosecutors insist the threat is greater than ever, citing a recent series of busts against sometimes violent shoplifting rings amid the Christmas shopping season.

“To me, it’s getting worse,” said James Kneipp, a Houston Police Department detective. Police in the nation’s fourth-largest city recently arrested 13 suspects for allegedly participating in an organized theft ring, he said. “They’re getting bigger. They’re getting … braver,” Kneipp told Stateline.

Despite the raging debate over the data, many law enforcement officials, now armed with tougher state laws, continue to assert that retail theft rings are often large and well-organized, made up of “boosters” (shoplifters) and fences who peddle the stolen merchandise online or to other stores. stateline.org


Calif. State Assembly Holds Retail Theft Hearing
CalRetailers Testifies at Statewide Hearings on Retail Theft
Cal Retailers President and CEO Rachel Michelin testified in front of the State Assembly Select Committee on Retail Theft today and the Little Hoover Commission last week regarding Retail Theft. We are encouraged to see our state's policymakers starting to take this growing crisis seriously and we look forward to working with members of both committees and the State Legislature in 2024 to further much-needed critical policy discussions that advance solutions to protect our communities from the rampant theft we have seen throughout California.

Read Michelin's Select Committee Testimony HERE.

Access the recording of the Select Committee Hearing HERE.
Continue to check back at this link if the recording is not yet posted

Learn more about the Assembly Select Committee on Retail Theft HERE.
Including materials from today's hearings (under additional information)

Read Michelin's Little Hoover Commission Testimony HERE.

Access the recording of the Little Hoover Commission Hearing HERE.

Californians for Safe Stores and Neighborhoods

Cal Retailers will continue engaging with our state's policymakers around Retail Theft and Organized Retail Crime through the Californians for Safe Stores and Neighborhoods Coalition, which was formed for business leaders and retailers representing numerous industries to collaborate on policy recommendations to combat Retail Theft. The coalition, recognizing that the safety of employees, customers and neighborhoods are at stake, will work with state leadership to implement effective strategies to combat retail crime that put businesses, employees and consumers at risk. The coalition's message is simple - focus on a comprehensive solution that Cal Retailers calls the 4D solution: DISMANTLE - DISRUPT - DETER - DIVERT

Rampant Retail Theft has forced California's neighborhood stores to reduce hours or even shut down to protect the safety of employees and shoppers. Not only does this impact businesses and local economies, it hurts the residents who depend on the goods and services neighborhood stores provide. The problem of Retail Theft will not be solved overnight, but, working with the State Legislature, Cal Retailers hopes meaningful steps can be taken to address this urgent crisis.


LAPD Making Progress Against ORC with Undercover Operations
How Los Angeles police are fighting back against organized retail theft
The Los Angeles Police Department has officers working around the clock to stop the organized rings behind these heists — especially after Chief Michel Moore personally witnessed one during his day off.

Just a few months ago, Southern California saw a sudden spike in flash mob robbery scenes. In 24 days in July and August, there were seven instances of people running in and stealing anything they could get their hands on — many times security is seen standing by, bewildering some.

Moore said he hopes security guards are witnessing the crimes to help officers track them down. Three months ago, Moore reinvigorated the department's organized retail crime unit. Now, three dozen investigators are working all day to catch these thieves.

They are working with five other agencies across Southern California, including the Torrance Police Department. Detective James Wallace and his fellow officers set up countless "blitz" operations, identifying possible strikes at stores. One of the stores that he and his team recently staked out, was a retailer that has been hit more than 200 times.

There, Wallace and his fellow undercover officers roam inside and outside of the store, waiting to catch the crooks in action.

LAPD officials said that despite the sudden saturation of the viral images and videos, detectives have seen a different reality since August. Since then, the task force set up to combat retail theft has arrested 66 key people involved in multiple crimes. Lopez believes that police are winning this battle, and believes many businesses will agree.

One retailer, WSS shoe store, said that there has been "notable progress" from LAPD's blitz operations. The state has also taken notice with the California Assembly forming a select committee which will meet for the first time on Tuesday. cbsnews.com


Target's Crime Closures Under the Microscope
Crime is worse at most of the locations it kept open near the stores they closed

Target blamed theft and violence for 9 store closures. Crime is higher at locations it kept open nearby
Target blamed theft and violence when it closed nine stores in four cities earlier this year, but a CNBC investigation found reported crime is worse at most of the locations it kept open near those stores.

In some cases, Target chose to keep operating stores in busier areas that had better foot traffic or higher median incomes, even though the locations saw more theft and violence.

CNBC's findings cast doubt on Target's explanation for the store closures and raise questions about whether the company's announcement was designed to advance its legislative agenda and obscure poor financial performance.

There was just one problem with the explanation Target gave for closing stores: The locations it shuttered generally saw fewer reported crimes than others it chose to keep open nearby, a monthslong CNBC investigation has found.

CNBC's findings cast doubt on Target's explanation and raise questions about whether the company's announcement was designed to advance its legislative agenda — seeking a crackdown on organized retail crime — and to obscure poor financial performance at the stores as it grapples with sliding sales.

Many of the locations Target closed were "small-format" stores the company opened over the last five years as part of an experiment to expand its footprint in dense, urban areas. The moves followed Target's decision to shutter four similar stores in the spring that it said were underperforming, Retail Dive previously reported. nbcdfw.com


Small Retailers Getting Hammered by ORC
68% of Small Retailers Are Seeing Above Average Shrink Due to Theft, Sparking Need for Proactive Measures

Despite a bombshell retraction in crime-fueled shrink claims, theft is still a growing problem for SMBs according to Software Advice’s 2023 Retail Shrink Preparations Survey.

ARLINGTON, Va.-- On December 5th, 2023, the National Retail Federation walked back a bombshell claim about the severity of organized retail crime on inventory shrink rates at big-box retailers such as Target and Walgreens. Despite the admission that sophisticated theft rings may not account for nearly half of the billions of dollars originally believed to be lost to retail shrink in 2021, the NRF and Software Advice’s new research suggests shrink, particularly through theft, is still a growing problem for small to midsize retailers.

Survey data reveals that 68% of SMB retailers are experiencing shrink rates above the industry standard of 1.5%. This rise is predominantly attributed to external theft (e.g., shoplifting, organized retail crime, and fraudulent returns) and marks a significant challenge for businesses with smaller margins and less sophisticated loss prevention strategies.

The survey findings also indicate an unsettling trend—an increase in shrink across its various contributing factors, such as theft, inventory damage, and vendor fraud. In fact, 34% of SMB retailers report a rise in shrink over the past 12 months, and 46% have experienced more theft at their stores. With shrink taking a bigger bite out of small-business sales, the focus on effective loss prevention strategies is paramount. Of the retailers who have observed more theft, 88% say they now consider loss prevention a top priority.

SMB retailers are adopting a range of strategies to curb shrink. Over half (54%) have installed or updated security cameras in the past year, a move indicative of their commitment to improving surveillance and reducing theft. Additionally, the introduction of new inventory management system reporting software and training techniques reflects a shift toward a proactive, technological approach that can keep employees safe with minimal impact to customer experience.

The full report offers additional findings, expert analysis, and recommendations to mitigate retail shrink at small businesses. businesswire.com

   RELATED: Small retailers face theft and inventory shrink in US


County DA & the DOJ Launch Separate Crime Initiatives in Memphis & Includes Retail Theft
Memphis DA targeting 12 specific crimes in public-safety push for 2024
Murder, carjacking, gun offenses and smash-and-grabs are among the 12 crimes Shelby County District Attorney General Steve Mulroy’s office will prioritize for prosecution in the new year.

His office will prioritize the prosecution of a dozen violent crimes and violent-adjacent crimes by focusing on three primary categories: bail and bonds, imposing case timelines and investigative strategies.

“It’s clear there is no more important issue in Memphis or Shelby County than public safety,” Mulroy said.

The dozen offenses Mulroy’s office will target are:

• First-degree murder and attempted first-degree murder
• Second-degree murder and attempted second-degree murder
• Carjacking and attempted carjacking
• Aggravated robbery
• Especially aggravated robbery
• Aggravated assault (with a gun fired)
• Aggravated burglary (with the homeowner present)
• Violent sex offenses
• Convicted felon in possession of a firearm
• Being caught in a stolen vehicle with a firearm
• Possessing a Glock switch
• Retail theft and smash-and-grabs

“If you come through the doors of this building having committed one of these offenses, you will be held accountable,” Mulroy said. “The first responsibility of any government is public safety. Prosecuting violent criminals isn’t the whole solution, but it is part of the solution.”

"The message needs to be if you have committed one of these offenses, you will be prosecuted vigorously. And you will go to prison.”

Mulroy’s announcement comes on the heels of another agency’s efforts to curb violent crime: The U.S. Attorney’s Office for the Western District of Tennessee announced a separate Violent Crime Initiative Nov. 28.

The federal initiative will see the addition of federal prosecutors in Memphis as well as investigations into organized crime. It also will include a community-engagement portion around crime.

Seven prosecutors from the Department of Justice’s Criminal Division will be brought to Memphis, including senior members of its Violent Crime and Racketeering Section who specialize in prosecuting organized crime. Data-driven investigations into organized crime will drive the enhanced prosecution work. dailymemphian.com


Holiday Cargo Theft Continues to Surge Each Year
Winter Holiday Theft Trends Infographic and Security Tips
JERSEY CITY, N.J., December 18, 2023 — CargoNet has reviewed theft data from a ten-day analysis period spanning December 23 to January 2 for the past 5 years to help supply chain professionals secure their supply chains for the upcoming holiday. In this analysis, there were 205 incidents reported to CargoNet, and the average cargo theft was valued at $121,473. The number of incidents increased progressively each year. Last holiday season, there were 56 incidents reported between December 23 and January 2.

Like previous years, incidents were most common in Texas and California, tied at 18% of incidents in each state. Incidents in other major cargo theft hotspots remain common. Incidents in Florida tripled from 2021 to 2022. Pennsylvania also saw an increase from none reported in 2021 to five reported incidents in 2022. In Georgia, Illinois, and Tennessee, cargo theft incidents remained consistent year-over-year.

Thieves most often stole unattended vehicles and shipments parked at major retail parking lots and truck stops. However, fictitious pickups have become a favored form of theft over the last year and CargoNet expects fictitious pickups will be a favored form of theft over the holiday period. We also note that incidents at warehouse/distribution centers were a close third to these two categories. This is a common theft location for fictitious pickup incidents.

We expect that both strategic cargo thefts and theft of unattended, loaded conveyances will remain at elevated levels throughout the holiday period. Please report any suspicious activity to law enforcement immediately and contact CargoNet only after law enforcement has been notified and there are no immediate threats to life or property. cargonet.com

   RELATED: 3 Strategies For Shippers To Combat Rising Freight Fraud


Shoplifting Prosecutions Surging in Portland
Multnomah County's shoplifting prosecution rates are catching up to those of neighboring counties

A follow-up to a KGW investigation found police and prosecutors made several changes to help build better shoplifting cases.

The Multnomah County District Attorney’s Office is prosecuting a higher rate of shoplifting cases than it did one year ago, according to newly released data. The improved numbers stem from several factors including changes in how theft cases are reported, stronger police relationships with big-box retailers and better follow-up to ensure that critical evidence such as surveillance videos or photos are shared with prosecutors.

Through October, the Multnomah County DA’s office has prosecuted 82% of misdemeanor theft cases, meaning thefts involving less than $1,000 in goods. That’s compared to a 50% prosecution rate in 2022 for that category, which represents most shoplifting cases in Portland.

The data indicates Multnomah County is now on par with prosecutors in other counties, such as Washington and Clackamas. Through October, the Washington County DA’s office prosecuted 94% of all Theft 2 and Theft 3 cases referred by police, while Clackamas County prosecuted 82% of its misdemeanor theft cases.

Last year, a KGW investigation found Multnomah County DA Mike Schmidt’s office had dismissed roughly half of all shoplifting cases at a time when Portland business owners complained retail crime had risen to new levels and shoplifting had become more frequent and brazen. kgw.com


House ORC Bill Gets More Cosponsors
H.R.895 - Combating Organized Retail Crime Act of 2023
Four new co-sponsors signed onto the legislation (4 Republicans), bringing the total to 103 cosponsors (55 Republicans, 48 Democrats). It's picking up activity.


NBC News: How big of a problem is 'organized retail crime?'

Small crime, big problem: Wichita retailers ranked among nation’s worst for thefts