6/3/25

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Which States Are Best -- and Worst -- at Fighting ORC?
States Diverge in Effectiveness Against Organized Retail Crime

By the D&D Daily staff

Organized retail crime (ORC) continues to challenge U.S. retailers, with states exhibiting varying degrees of effectiveness in combating this issue. While some have implemented robust measures yielding significant results, others struggle with legislative and enforcement shortcomings.

Leading States in ORC Mitigation

California has emerged as a frontrunner in addressing ORC. Since 2019, the state has invested over $1.1 billion in public safety initiatives. These investments have facilitated the arrest of more than 10,000 suspects and the recovery of stolen goods valued at over $46 million. The California Highway Patrol's Organized Retail Crime Task Force has been instrumental in these efforts, conducting over 3,000 investigations and making significant arrests, including a notable operation in December 2024 that led to the apprehension of 117 individuals involved in a shoplifting ring.

Michigan has also taken proactive steps by establishing the Focused Organized Retail Crime Enforcement (FORCE) Team in 2023. This unit has charged over 85 defendants and recovered more than $10 million in stolen merchandise and currency. Attorney General Dana Nessel's office reports that retailers in Michigan suffered losses exceeding $2 billion in 2022 due to ORC.

Florida has enacted stringent legislation, classifying retail theft as a first-degree felony under certain conditions, potentially resulting in up to 30 years in prison or fines up to $10,000. This move aims to deter repeat offenders and those committing thefts with weapons.

States Facing Challenges

Conversely, Washington state has been identified as the most impacted by organized retail crime, with losses exceeding $2.7 billion in 2021. Despite these figures, comprehensive legislative measures to address ORC remain limited.

Pennsylvania has also been highlighted for its struggles with ORC. While specific legislative actions are not detailed, the state's challenges are evident in ongoing discussions and concerns raised by residents and officials.

National Legislative Efforts

At the federal level, the Combating Organized Retail Crime Act has been introduced to enhance coordination among law enforcement agencies and establish new tools to recover stolen goods and illicit proceeds. This bipartisan effort underscores the nationwide recognition of ORC's impact and the need for a unified response.

As organized retail crime continues to evolve, states' responses vary, reflecting differing priorities and resources. While some have made significant strides, others face ongoing challenges in addressing this complex issue.


ORC Becoming Top Priority for Lawmakers
Weekly Column: Combating Organized Retail Crime

Guest column submitted by U.S. Senator Mike Crapo

Organized retail crime, which involves coordinated crime groups shoplifting and committing other forms of theft or fraud to then resell the merchandise through online and local marketplaces, is resulting in significant financial losses and safety concerns across our country. I have co-sponsored S. 1404, the Combating Organized Retail Crime Act, to better protect Idaho businesses, employees, customers and communities.

For decades, Idaho law enforcement has been proactively coordinating with retail professionals and community leaders to prevent retail theft in the state and discourage organized crime rings from targeting Idaho retailers. “Organized retail crime impacts everyone across the country, in cities large and small, including where we call home here in Idaho,” said Edward Fritz, Crime Prevention Supervisor with the Boise Police Department and Chairman of the Organized Retail Crime Association of Idaho (ORCAID). “Only by working together, across our communities and at all levels of government, can we keep Idaho dollars in Idaho, products on Idaho shelves, and stores in Idaho neighborhoods.”

In recognition of the benefits of collaborative efforts, such as those in Idaho, the Combating Organized Retail Crime Act would establish a nationally coordinated multi-agency response and broaden tools to tackle evolving trends in organized retail theft. The legislation would create the Center to Combat Organized Retail and Supply Chain Crime within the U.S. Department of Homeland Security that would combine expertise from law enforcement agencies and retail industry representatives, and expand legal tools for federal and local law enforcement to assist in federal investigation and prosecution of organized retail crime and help recapture lost goods and proceeds.

Various law enforcement, retail industry, shippers, agriculture producer groups and others also support the Combating Organized Retail Crime Act. Albertsons Companies operates 44 stores in Idaho under the Albertsons, Albertsons Market Street and Safeway names. “At Albertsons Companies, we strongly support legislation aimed at combating organized crime, which poses significant implications for our customers and associates. Their safety remains our top priority,” said Tom Moriarty, EVP, General Counsel, M+A and Corporate Affairs at Albertsons Cos. “We support Congress’s effort to address this issue and appreciate Senator Crapo’s work in sponsoring the Combating Organized Retail Crime Act.”    crapo.senate.gov


Retailers Double Down on Facial Recognition
'Protecting staff is number one priority'

UK grocery exec doubles down on support for facial recognition

'We have on average four or five assaults on our colleagues every day'

Asda executive chairman Allan Leighton has doubled down on his support for controversial trials of facial recognition technology in the supermarket’s stores, saying that protecting staff is his number one priority.

The UK has witnessed an unprecedented rise in retail crime, with 2024 seeing the highest level of reported shoplifting offences since police began recording them. Industry calculations put the cost of theft, and of increased security measures, at £4.2bn a year.

Asda is banking on facial recognition to fight back. ...“We have on average four or five assaults on our colleagues every day, and that is unacceptable. We will do whatever we need to do, within the law, that enables that number to come down,” Leighton told Grocery Gazette.

Leighton referred to trials of facial recognition technology in other markets as showing retailers a viable way to protect workers. “It’s had some effect. We didn’t just dream this up one day. I want to be very clear, my number one task is to make my colleagues safe. And four or five assaults a day is not acceptable.”  grocerygazette.co.uk


District Attorney John Wentworth updates retail theft prosecution efforts

Baltimore crime data: Both violent, property crime down in 38% of neighborhoods
 

Target Eyes Turnaround
What went wrong at Target?

The mass merchant is looking to turn around falling sales and declining customer sentiment. But first, it needs to diagnose its own problems.

It’s been a tough few months for Target.

Or at least that’s how CEO Brian Cornell described it in an email to employees in early May. In the email, which Target shared with Retail Dive, Cornell recognized that silence from leadership had “created uncertainty,” but added reassurance that “we are still the Target you know and believe in—a company that welcomes all and aims to bring joy to everyone, every day.”

But is it? Some consumers aren’t so sure anymore and analysts would argue that Target’s tough period started far before this year.

Target is not standing still in the face of its challenges. The retailer announced a slew of new brands or offerings over the past few months, met with some well-known activists to discuss its DEI changes, launched a strategic refocusing initiative and switched up its executive team.

Still, analysts seem doubtful of how quickly the business can be turned around. Plus, the work comes at the same time as major changes in U.S. trade policy that have upended retail planning and inserted more uncertainty into the industry.

Target has a plan. But is it too little, too late?   retaildive.com


Are Gyms Helping Mall Traffic Surge Again?
Placer.ai: Are malls cool again?
Macy’s and JCPenney still play a key role in drawing customers to malls, but empty anchor implants like entertainment brands, fitness centers, and restaurants are increasingly building new traffic across longer ranges of hours, declares Placer.ai’s latest Mall Report.

One key participant in this trending phenomenon is a brand that most retail experts thought had run its course: Barnes & Noble. In recent years, the land’s leading bookseller has reinvented itself in smaller stores (15,000 sq. ft. versus 25,000 sq. ft.) redesigned to be “hangouts” for local customers with better lighting, more open layouts, and opportunities for social interaction.

Not many years ago, shopping center tenants eschewed co-tenancy with gyms due to the high number of parking spaces they took up and the low number of purchases members made at other stores in the mall. Those days appear to be gone.

“Increasingly, shopping centers are turning to fitness centers as experiential anchors,” according to the Placer.ai report. “And since many people work out early in the morning, these gyms are having a significant impact on the distribution of mall visits across dayparts.” chainstoreage.com


Tariff Troubles for Spirit Halloween?
Spirit Halloween cancels season opening event due to ‘supply chain challenges’

Although the specialty retailer did not blame tariffs for the pause in the annual celebration, it did point to “international disruptions.”

Spirit Halloween canceled its annual season-opening event due to “supply chain challenges,” the company said in a social media announcement.

Although the retailer did not mention tariffs, the company pointed to “international disruptions” as an additional reason it is pausing a celebration at its Egg Harbor Township, New Jersey, flagship store. The company did not immediately respond to Retail Dive’s questions about how tariffs impacted the decision.

The event, which launched in 2021, typically showcases the company’s best costumes, accessories and decor for the upcoming Halloween season and is open to the public. The specialty retailer said it intends to bring back the event in 2026. retaildive.com


Summer COVID Surge Coming?
A new COVID subvariant spreads rapidly as Trump pivots away from vaccines
A new, highly transmissible COVID subvariant has been detected in California — heightening the risk of a potential summer wave as recent moves by the Trump administration threaten to make vaccines harder to get, and more expensive, for many Americans, some health experts warn.

Health and Human Services Secretary Robert F. Kennedy Jr. announced this week that he was rescinding the federal government’s recommendation that pregnant women and healthy children get immunized against COVID, effective immediately.  latimes.com


CVS Is Closing 270 Locations Nationwide. Is a Store Near You on the List?

Saks Global rescues its holiday with $350M in new financing

Big Lots in final phase of store reopenings — June date set for 78 locations

Consumer confidence rebounds in May amid increased optimism
 

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How Amazon May Weather the Tariff Storm

By the D&D Daily staff

Amazon is navigating a complex landscape as new U.S. tariffs reshape global trade. President Trump's 2025 tariff policies have introduced significant challenges, but Amazon's scale and adaptability may offer a competitive edge.

Tariff Pressures and Strategic Responses

The imposition of tariffs—at one point, up to 145% on Chinese imports—has impacted Amazon's supply chain, with approximately 25% of its self-sold product costs originating from China. In response, Amazon has encouraged third-party sellers to stockpile inventory in the U.S., aiming to mitigate immediate cost increases and maintain price stability. CEO Andy Jassy noted that, so far, these measures have prevented significant price hikes, though the company remains vigilant as the situation evolves.

Potential Competitive Advantages

While tariffs pose challenges, they also disrupt competitors. The closure of the "de minimis" loophole, which previously allowed low-value shipments to bypass duties, has particularly affected rivals like Temu and Shein. Amazon's diversified seller base and robust logistics network position it to absorb some of these shocks, potentially capturing market share as competitors adjust.

Financial Outlook

Despite the headwinds, Amazon reported strong first-quarter earnings in 2025, with net sales of $155.67 billion and earnings per share of $1.59, surpassing analyst expectations. However, the company has flagged a potential $900 million impact from tariffs in the upcoming quarter, underscoring the financial risks ahead.

Looking Ahead

Amazon's proactive strategies, including inventory management and leveraging its vast seller network, aim to cushion the impact of tariffs. While uncertainties persist, the company's scale and adaptability may enable it to not only weather the storm but also strengthen its market position amid global trade shifts.


Anti-Competitive Pricing at Amazon?
Amazon price rules anti-competitive: German regulator
Amazon's pricing rules are an abuse of its market power, Germany's competition watchdog said Monday, paving the way for possible demands for changes to its business practices in Europe's biggest economy.

Amazon forces third-party sellers who use its platform to keep prices within limits that the tech giant sets, the Federal Cartel Office said in a statement, reducing the visibility of products that do not keep to its rules or even removing them entirely.

"Since Amazon competes directly with other marketplace retailers on its platform, influencing competitors' pricing, including in the form of price caps, is highly questionable," said Andreas Mundt, head of the regulator.

"That is especially so when the traders concerned cannot cover their own costs."

Amazon, which according to the cartel office accounts for about 60 percent of online retail revenue in Germany, now has the opportunity to respond to the regulator's preliminary ruling. A spokeswoman for Amazon said it strongly disputed the cartel office's findings and that its rules helped its customers. insidenova.com


100,000 kitchen faucets sold on Amazon recalled

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