Smart Security vs. Retail Criminals
How Smart Security Tech Is Elevating Protection for Luxury Retailers
It doesn’t matter whether you run a small, high-end boutique with one-of-a-kind gemstone pieces or you manage a national chain specializing in luxury watches: if you’re in the business of selling high-value goods, you’re a target. Period.

This is why securing your store should be of utmost priority. But physical locks and after-hours guards are just a part of the security-puzzle. If you want to be as safe as possible, you need layered, intelligent systems that know how to think, respond, and adapt faster than the people trying to outsmart them. In other words, you need smart security tech working for you.

Security Tech as a Digital Nervous System

You probably already have surveillance cameras, maybe even motion detectors. But those are reactive tools. Don’t get us wrong, they’re very valuable, of course, but they’re also quite limited.

An AI security camera, on the other hand, offers much more context. It doesn’t just record what happened, it actually evaluates it in real time, flags anomalies, and gives you (or your security partner) a chance to step in before you’re left with empty cases (something a camera or a motion sensor cannot do).

With smart tech, you don’t have to rely on a night shift guard to notice something suspicious. You can use AI that can tell the difference between someone browsing with intent and someone casing the place. Another great thing about these systems is that they can integrate directly into your existing operations, so you’re not just protecting your assets, but also streamlining how you manage them.

AI Surveillance

Artificial intelligence in surveillance has gone far beyond facial recognition. Modern systems use behavioral analytics to monitor patterns, meaning how long someone lingers, whether they’re returning frequently without buying, or even how they move through the store.

These alerts are built on training data that evolves as the system observes your store’s specific foot traffic, so they’re pretty darn smart. And numbers confirm it: according to one report, retailers using AI tools with gesture recognition report up to 50% reduction in theft in certain sections through real-time alerts to staff. That’s big.

Smart Alarms That Don’t Cry Wolf | IoT-Enabled Inventory Tracking | What Happens When Things Go Wrong Anyway? | Making Smart Tech a Part of the Design: technology.org


The Complicated Story Behind California's Theft Surge
Amid the terror of smash-and-grab mobs, is retail theft actually up?

Column: Studies have found that the prospect of getting caught deters crime. You think?

It’s the phenom that helped obliterate much of Proposition 47 (the “drug users and small-time thieves should get treatment and rehabilitation, not jail,” initiative, passed in 2014) — and usher in its antithesis, Proposition 36 (the “arrest those robbers and put them behind bars!” initiative, passed last year).

Retail theft has, indeed, risen over the last decade — unevenly, but sometimes sharply. Still, it remains far below historical highs clocked 40 years ago, according to data crunched by the Legislative Analyst’s Office.

Yes, crimes in 2023 were higher than in 2014 — 11% higher, actually — and we’ll get into why in a minute. But keeping the big picture in mind puts things into perspective.

It’s also important to understand that the increases haven’t been across-the-board statewide. They’ve been concentrated in the large counties — particularly Los Angeles, Alameda, Sacramento and San Mateo, while Orange and Riverside had sizable, if smaller, jumps. Small counties, meanwhile, tended to have no jumps at all, but actual declines.

But then 2014 happened. The big change in the criminal justice system that year was the well-intentioned Prop. 47. Not only did Prop. 47 narrow officers’ authority to make arrests for shoplifting; in 2016, Proposition 57 expanded the state’s authority to reduce prison terms for good behavior.

One might argue smaller-time crime in California became a game of “Catch me if you can.” Between 2014 and 2015, retail theft increased by 5%, then dropped by 20% between 2015 and 2021 (about half of that decline was between 2019 and 2020, as the pandemic’s stay-at-home orders and business closures dramatically limited the opportunity for mischief).

But once things opened up, retail theft rose, perhaps by more than official numbers indicate. Officially, retail theft leapt by 32% between 2021 and 2023, the LAO said. ocregister.com


Retailers Grapple with 'Staggering' Self-Checkout Loss
Checkout Chaos: How Retail Theft and Technology are Reshaping Store Valuations
The rise of self-checkout (SCO) systems has transformed retail operations, promising cost savings and efficiency gains. Yet beneath this veneer of innovation lies a growing crisis: retail theft is soaring, and the very technology meant to streamline shopping is now a major vector for fraud, operational risk, and customer trust erosion. For investors, this presents a stark dilemma: which retailers can navigate these risks to preserve profitability and valuation multiples, and which will become casualties of a system that prioritizes speed over security?

The Theft Epidemic and Its Financial Toll

Retailers are grappling with staggering losses. Global shrinkage—inventory lost to theft, fraud, or error—surged to $13 billion annually in the U.S. alone, with SCO systems accounting for up to 23% of unknown store losses. In the UK, SCO-related shrinkage cost retailers £1.8 billion in 2023, while U.S. shrinkage hit $112.1 billion in 2023, up 19% from 2021. The worst offenders? Organized retail crime (ORC) crews, which account for just 3% of shoplifters but 10% of losses, targeting high-value items like electronics and cosmetics.

SCO systems themselves are riddled with vulnerabilities: walk-aways (customers leaving without paying), non-scanning (skipping items), and mis-scanning (choosing lower-priced items) collectively drain margins. For every $100 spent at an SCO lane, $3.50 is lost to fraud, versus $1 at traditional checkouts—a gap that adds up to billions in lost profits.

The Silent Erosion of Customer Trust

While shrinkage directly eats into margins, the less visible threat is customer trust, which underpins repeat visits and loyalty.  ainvest.com

RELATED: Walmart makes controversial change to fight retail theft


California's Property Crime Rate Dropped 8.4% From 2023 to 2024
Crime in CA drops again — state records second-lowest homicide rate since 1966
New data released by the California Department of Justice shows that in 2024, nearly every major crime category declined, including violent crime, property crime, homicides, aggravated assaults, motor vehicle theft, burglary, and robbery. In addition, total full-time criminal justice personnel increased 1.9% from 2023 to 2024.

Since 2019, property crime, arson, burglary, and robbery have all decreased in California. Burglary rate decreased 18.8% from 2019 to 2024, the largest decrease of all categories. During that same time period, property crime rate decreased 9.1%, arson rate decreased 8.7%, and robbery rate decreased 9.6%.

Last August, Governor Newsom signed into law the most significant bipartisan legislation to crack down on property crime in modern California history. Building on the state’s robust laws and record public safety funding, these bipartisan bills offer new tools to bolster ongoing efforts to hold criminals accountable for smash-and-grab robberies, property crime, retail theft, and auto burglaries. While California’s crime rate remains at near historic lows, these laws help California adapt to evolving criminal tactics to ensure perpetrators are effectively held accountable. gov.ca.gov


Small Businesses Suffer the Most
Shoplifting and other theft are big problems for small businesses
Theft has a big impact on small businesses and how they operate. “It is just a trickle-down effect,” said Ray. “We cannot have as many people making the pay rate that we feel like they should be making,” said Ray. “We also cannot have certain products in the store because they keep getting stolen.”

The worst part of dealing with thieves is trying to hold them accountable. Ray said police respond, but she doesn’t know of many arrests that have been made. “Look at all these police reports, these are from just this year in 2025. It is just crazy, and these are two new ones,” said Ray. wcbi.com


L.A.: Inside the crackdown on retail theft ‘fences’

There are gray areas in the matter of shoplifting and policy making
 

 
NRF PROTECT Highlights the Importance of Collaboration
Retailers and law enforcement agencies unite at the NRF Fusion Center

Collaboration is key to fighting retail theft, fraud, cybersecurity threats & enterprise risk

At NRF PROTECT 2025, professionals from across loss prevention, asset protection, fraud and cybersecurity came together to tackle the most urgent threats impacting retailers today.

Returning to the expo floor this year was the NRF Fusion Center, a destination for retailers to forge and strengthen vital public-private partnerships with law enforcement agencies, mall security and organized retail crime associations.

Participating agencies included the Cook County Sheriff’s Police Organized Retail Crime team, Dallas Police Department, Fairfax (Va.) County Police, New York State Police and the United States Postal Inspection Service. Together, these agencies highlighted the importance of working with retailers directly to better support them.

Throughout the event, the agencies provided key insights into the tactics that have benefited their work:

• Having dedicated teams focused on retail crime allows agencies to more effectively support businesses.

• Keeping a pulse on the latest technology and fraud issues has been vital. For the Fairfax County Police department, tools such as license plate readers have assisted with capturing shoplifters at popular shopping centers in the area.

• Remaining up to date with the latest fraud techniques is beneficial. Whether it’s a new gift card scam or a new retail return fraud method, being aware of these techniques early can help to fight the issue.

• Building strong and open relationships between retailers and law enforcement agencies is vital. The Cook County Sheriff’s Police Organized Retail Crime team credits much of its success to building strong partnerships with retailers and keeping communications frequent and open. In just two years, the team has recovered $5 million in stolen merchandise across cases. nrf.com

Retail's AI Investments Continue - But Confidence Still Isn't High
Few retail leaders are confident in their current AI capabilities, EY finds

The majority of industry executives say innovation requires analytics and AI, but it’s early days for these investments.

Over three-quarters of retail leaders say that innovation requires analytics and AI, but fewer than one-third believe their current capabilities in those technical areas give them a competitive advantage, according to May research from EY.

Over half of retailers say AI, data and analytics are a top priority, according to the survey of 500 consumer products and retail executives, 20,000 consumers and almost 200 CEO’s.  Three-quarters of consumer product leaders report relying more on AI and analytics to make smarter investment decisions for innovation. Almost half of these leaders are directly investing in these capabilities.

AI investments are the norm for business leaders now, but how much return they’re getting from these investments varies. Nearly two-thirds of retailers say that integrating AI and automation is one of the top areas where collaboration is essential in their business.

However, leaders are split on their exact objective when deploying AI. Over half (54%) say they’ll use it to reduce labor costs through automation, while the rest (46%) plan to use AI to improve productivity among employees.

Already, retailers are working to incorporate AI. Best Buy, Walmart, Lowe’s and Home Depot are among the companies investing in AI across multiple use cases in consumer-facing formats, from shopping tools to enhancements for search experiences. retaildive.com


Debate Over City-Run Stores Heats Up in NYC
Can City-Run Grocers Work For New York City?
Zohran Mamdani, the Democratic nominee for mayor of New York City, plans to open government-run grocery stores, if elected, to combat high food prices, again sparking a debate over whether cities should be running grocers.

In a campaign video, he described the stores as a “public option” like in health care and said they would “operate without a profit motive.” The stores would not pay rent or property taxes, potentially reducing overhead with the savings passed onto consumers. They would also buy and sell at wholesale prices, centralize warehousing and distribution, and partner with local neighborhoods on products and sourcing.

Mamdani projects it will take a total of $60 million to launch one grocery store in each of New York City’s five boroughs. He has previously said he will redirect some of the $140 million in private grocery store tax breaks to finance the pilot program.

The grocery stores also address food deserts — or areas, often in low-income communities, where residents have limited access to affordable and healthy food options. retailwire.com


NRF vs. NY
New York sued by National Retail Federation over surveillance pricing law
New York state was sued on Wednesday by the National Retail Federation over a new law requiring retailers to tell customers when their personal data are being used to set prices, known as surveillance pricing. The world's largest retail trade group said New York's Algorithmic Pricing Disclosure Act, which would take effect on July 8, violates many members' First Amendment free speech rights.

Governor Kathy Hochul signed the first-in-the-nation law in May, saying the practice of charging different prices based on customers' willingness to pay was "opaque," and prevented those customers them from comparison-shopping. reuters.com

 
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