How Organized Retail Crime is Threatening the Retail Industry

Organized Retail Crime (ORC), the coordinated theft of merchandise for resale, has grown exponentially in the U.S., necessitating increased security measures and even causing store closures. The issue is projected to escalate, demanding modern, tactical security solutions that allow retailers and law enforcement to combat ORC while maintaining a pleasant shopping environment.

Cloud video security is a powerful tool in fighting ORC. OpenEye's comprehensive guide delves into the current methods for defining and measuring ORC's impact on businesses and the economy. It explores effective security strategies for mitigating inventory loss and enhancing the shopping experience. The guide also highlights the advantages of cloud video surveillance in tackling ORC, and how the integration of other security systems can provide a more robust solution for retailers.

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Retailers Continue to Grapple with Tariffs

Tariffs Trigger Walmart Price Hikes
Walmart quietly jacks up prices — despite Trump’s demand for retailer to ‘eat the tariffs’
Walmart has quietly been hiking prices on items ranging from toys to office supplies, with some markups reportedly climbing more than 100% — despite President Trump’s demand for retailers to “eat the tariffs.”

Photos circulating online, particularly on the Walmart subreddit, have documented the dramatic price hikes since the White House imposed a 145% tariff on imports from China in early April, before lowering the levy to 30% last month.

The price of toys, the bulk of which are made in China, were particularly impacted. A “Jurassic World” T. rex rose from $39.92 on April 27 to $55 by May 21 — an increase of nearly 38%. Price tracking site AisleGopher shows the same item cost $29.74 in November.

A “Baby Born” doll jumped from $34.97 in March to $49.97 in May, a roughly 43% rise, while a Lite Brite Magic Screen set moved from $14.97 to $21.97 (up nearly 47%). The popular Etch A Sketch jumped from $14.97 to $24.99 — nearly a 67% increase. The price on some office supplies also surged.

Walmart’s Chief Financial Officer John David Rainey acknowledged the hikes and called them “unprecedented,” according to Business Insider, which first reported on the backlash over the stick shock from shoppers. nypost.com


Off-Pricers Feeling the Tariff Pinch?
Tariffs squeeze off-price retailers more than expected

The major players likely have greater exposure to import levies than previously thought, though their value proposition remains an advantage.

Once tariffs became a reality, it became clear that they pose a greater risk to off-pricers than previously thought, according to Evercore ISI analysts led by Michael Binetti. They estimate that, counting both direct and indirect sourcing, 40% of the total containers imported to TJX’s U.S. operations last year were from China, for example.

“Do off-pricers quietly have more exposure to China inventory than they let on?” Binetti said in a May research note. “They do. While the off-pricers claim to have very little direct sourcing from China, we believe a much higher [percentage] of the product they source indirectly is from China.”

That doesn’t mean that these retailers are in the same boat as most others. The on-again, off-again nature of the tariff policy has sent most retail companies scrambling, and off-price players have reacted deftly, according to Evercore’s research. For the most part, they moved to amass inventory even before the rollout of reciprocal tariffs on April 2, avoided placing orders while levies on goods from China were at 145%, then resumed them once levies plummeted to 30%. retaildive.com

   Relate Retail-Tariff Coverage

   • What Should Best Buy’s Tariff Playbook Look Like?

   • Americans Aware of Tariffs, but 40% Aren’t Making Any Changes to Purchasing Behavior


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

 
Helping Workplaces Comply with the Law
OSHA Part of New Opinion Letter Program

The program aims to "empower the public with the information they need to understand and comply with the laws," said Deputy Secretary of Labor Keith Sonderling.

On June 2, the Department of Labor announced the launch of its opinion letter program.

The program expands the department’s commitment to providing meaningful compliance assistance that helps workers, employers and other stakeholders understand how federal labor laws apply in specific workplace situations, the Department of Labor said in a statement.   ehstoday.com
 

Father’s Day Spending To Hit Record High Amid Concerns for Economy: Study

Will Dollar General Continue To Attract Higher-Income Customers?
 

Cybersecurity Breach Impact
Victoria’s Secret postpones earnings following security incident

The company provided preliminary Q1 results, but a shutdown of its website during “retail’s all-important Memorial Day weekend” was a “significant problem,” according to analysts.

Victoria’s Secret & Co. has postponed its first-quarter earnings report following a security incident.

The company first detected a cybersecurity breach on May 24, and engaged with protocols to contain and eliminate the unauthorized network access, according to a Tuesday press release. The retailer shut down its website two days later, paused some in-store services and temporarily halted its customer care.

The website was restored on Thursday, and most of the functions that impacted Victoria’s Secret and Pink stores have been repaired.

The incident was “a significant problem during retail’s all-important Memorial Day weekend,” according to Wells Fargo analysts led by Ike Boruchow. The full scale of the event is unknown and ongoing.

The company is still in the process of restoring access to some of its corporate systems. That recovery has prevented employees from accessing information needed to release the retailer’s Q1.

Victoria’s Secret originally was to report earnings on Thursday prior to the market’s open, and will announce a new release date at a later time. The security incident did not impact the retailer’s financial results for the quarter. retaildive.com


600K Tech Jobs Cut Since 2022 - Will AI Make it Worse?
Where Is Walmart Likely Facing a Tech Skills Gap?
Walmart revealed last week that it’s eliminating about 1,500 jobs across technology functions and U.S. operations, adding to the waves of recent layoffs seen in the tech space as GenAI recasts roles and skill requirements.

The job cuts, as first reported by the Wall Street Journal, are designed to simplify operations.

In an internal memo, Suresh Kumar, global CTO and chief development officer, and John Furner, Walmart U.S. president and CEO, said that within Global Tech and Walmart U.S. organizations, said, “We have identified opportunities to remove layers and complexity, speed up decision-making, and help associates innovate rapidly. We are eliminating roles as well as opening some new roles aligned with our business priorities and growth strategy.”

More than 600,000 technology jobs have been cut in the U.S. since the start of 2022. The layoffs have been blamed on economic factors and over-hiring during the pandemic, but much of the recent cuts have been attributed to the rise of artificial intelligence (AI).

More than half of tech hiring managers (54%) expect their companies to conduct further layoffs within the next year, with 45% believing employees whose jobs can be replaced by AI/automation are most likely to be let go, according to a recent report from General Assembly.

Despite the layoff risks, 69% of hiring managers say advancements in AI are very likely to create demand for new roles, and 76% cite strong potential to upskill or reskill employees slated for layoffs. AI development, proficiency with AI tools, and cybersecurity are the most sought-after technical skills. retailwire.com


The International Fight Against Cybercriminals
How global collaboration is hitting cybercriminals where it hurts
In this Help Net Security interview, William Lyne, Deputy Director of UK’s National Crime Agency, discusses the cybercrime ecosystem and the threats it enables. He explains how cybercrime is becoming more accessible and fragmented. Lyne also talks about key trends, recent disruptions, and collaboration between law enforcement and the private sector.

What are the most concerning trends you’re seeing in cybercriminal behaviour today?

Cybercrime is a constantly evolving threat, which is supported and enabled by a cybercrime ecosystem of technical capabilities and threat actors. This ecosystem generally results in two high level, connected trends – it lowers the barrier of entry into cybercrime and proliferates cybercrime capabilities. I see ransomware as a symptom or product of the cybercrime ecosystem.

More tactically, in 2024 there were a number of significant disruptions, such as the BlackCat-ALPHV exit scam and the NCA-led disruption of the LockBit ransomware-as-a-service group. These may have initiated or accelerated a move into a post-trust era, where there is less trust between threat actors than ever before. This has led to a fragmentation, resulting in more groups made up of smaller numbers of threat actors, with none gaining the dominant market share that groups such as LockBit had in the past. Groups are more likely to be lower profile, and potentially target lower profile and smaller organisations than in the past. helpnetsecurity.com


M&S CEO’s pay hit £7.1m before cyber attack

Cybersecurity jobs available right now

Update: Maryland Man Convicted in $14K Retail Theft Scheme
Maryland Attorney General Anthony Brown announced the conviction of David Bernhardt Sr. of Annapolis for a retail theft scheme involving approximately $14,000 across multiple counties, resulting in supervised probation after full restitution was paid. David Taylor Bernhardt Sr., 57, of Annapolis, Maryland, engaged in a pattern of retail thefts targeting Lowe’s and Home Depot stores. Bernhardt pleaded guilty to one count of theft scheme $1,500 – $25,000. Prior to the conviction, he paid the full amount of restitution to the victim stores. Bernhardt was granted a probation before judgment and placed on five years of supervised probation, with a special condition to stay away from the victim stores. Bernhardt engaged in a pattern of at least 62 retail crimes. Investigators first became aware of his activities in March of 2024. He targeted stores across the state, including locations in Prince George’s County, Anne Arundel County, Frederick County, Garrett County, and Allegany County.  mocoshow.com


Hot Springs, AR: Griffin announces shutdown of 2 separate crime operations -- a retail theft ring and an illicit massage parlor
Authorities last month arrested 16 people charged in organized retail theft in Jonesboro and raided a China-linked illicit massage parlor in Hot Springs in separate investigations tied to two of Arkansas Attorney General Tim Griffin's highest priorities for prosecution, he said during a Monday news conference. The string of arrests last week in Jonesboro were linked to thefts at 13 retail store locations including Home Depot, Lowe's, Academy Sports, Walmart and Target, Griffin said. While the May 22 raid at the AI Massage parlor at 3954 Central Ave. in Hot Springs didn't result in any arrests, authorities made contact with victims of sex trafficking and recovered more than $22,000 in U.S. currency, he said. "None of the bosses were there, the victims were there -- all Chinese nationals," Griffin said of the Hot Springs raid, speaking from behind a table covered with stacks of bills recovered in the sting.  eldoradonews.com


Fairfax County, VA: 3 Suspects Arrested for Stealing More Than $30K Worth of Candles in NoVA
The Fairfax County Police Department has charged three suspects for their involvement in “a series of organized retail thefts.” The target of these thefts? Candles. More than $30,000 worth of candles, to be specific. According to FCPD, the three suspects — all from Washington, DC — conducted a series of 15 thefts between February and May. In each of these instances, the suspects stole merchandise with retail values ranging from $600 to $4,319. The thefts happened in Kingstowne, Fair Oaks, and Springfield.   northernvirginiamag.com


Tigard, OR: 6 adults, 6 teen girls arrested in Tigard retail theft mission
A Tigard retail theft mission on Saturday resulted in 12 arrests, police announced. Over $1,000 in stolen merchandise were recovered, as well as 30 items. “Our goal is to identify and interrupt criminal behavior as it’s happening. This helps hold shoplifters accountable and aims to reduce this type of crime within the greater business community,” Tigard police said. Eleven out of the 12 people arrested were under the age of 31.  yahoo.com


Bakersfield, CA: 13 arrested in joint retail theft operation in Bakersfield
The Bakersfield Police Department and California Highway Patrol partnered up and arrested 13 people, two of which face felony charges. The operation happened on May 30, according to the police department. Detectives collaborated with Abercrombie & Fitch, Hollister, Old Navy, Target, Bath & Body Works, Macy’s and JCPenney at the Valley Plaza Mall. In total, $1,638 in stolen merchandise was recovered and returned, according to police.  kget.com
 

Sacramento, CA: Update: Suspect in $10K cigarette theft from Southern California liquor store arrested

Decatur, AL: One arrested, two wanted in $3,800 Ulta Beauty theft in Decatur
 

Robberies, Incidents & Thefts


Navarre, FL: Jersey Mike’s staffer helps free kidnapped domestic violence victim
A Navarre, Florida, sandwich shop employee reportedly helped authorities save a domestic violence victim who had allegedly been kidnapped by her abusive, pro-wrestler boyfriend after the worker recently found a note in a store bathroom that read “HELP!” At the center of the incident is Eleanor Coffee, who was at her job making sandwiches for a shop belonging to the Jersey Mike’s chain when she noticed a “little piece of crumpled up paper” that had been discarded next to one of the business’s toilet paper dispensers, as she put it to the local news station WEAR-TV. Coffee alerted her manager to the note and called the Santa Rosa county sheriff’s office, whose jurisdiction includes Navarre, she told WEAR. After reviewing security video at the Jersey Mike’s shop, deputies established the note had been left by a woman who entered the store with her boyfriend, identified as 34-year-old Jordan Williams, a statement from the sheriff’s office said. The sheriff’s office said it was familiar with Williams from prior domestic violence cases. Deputies then obtained a warrant to search the address mentioned in the note at Jersey Mike’s before encountering a woman at that home “who confirmed she authored the note and detailed a prolonged period of abuse”.  theguardian.com


Oak Park, IL: Man attacks Oak Park beauty store manager, threatens to kill him
Oak Park police are investigating a violent incident that played out at a Madison Street beauty store in the village last week. According to a police activity report, a man got into an altercation with the manager shortly after 12:40 p.m. Monday, May 26. The man reportedly “”threw a beverage bottle on the victim and kicked him in his genital area,” according to police. The man then threatened the victim referencing a firearm, saying, “you’re lucky I don’t have my strap, I’d kill you,” according to police.  oakpark.com


Richmond, BC, Canada: Alleged Lego thieves arrested at Richmond mall; 5 arrested

Ottawa, Canada: Police seeking suspect in Tanger Outlets jewelry store theft