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The U.S. Crime Surge
The Retail Impact

Multi-State ORC Demands National Response
Multi-State ORC Rings Highlight the Need for a National Response

By the D&D Daily staff

Another sprawling organized retail crime case is highlighting a fundamental challenge for retailers and law enforcement: Criminal networks rarely respect the jurisdictional boundaries of the agencies trying to stop them.

A Georgia grand jury recently indicted 11 people accused of participating in an organized theft operation that targeted 10 retail chains, including Walmart, Home Depot, Ulta Beauty, Kay Jewelers and Zales. Authorities say the alleged activity stretched from Georgia into Florida, South Carolina and Virginia between 2022 and 2026, with confirmed losses exceeding $200,000 and the total impact still being evaluated.

The case is significant not simply because of its size, but because of its footprint.

Modern ORC networks can move offenders and stolen merchandise across cities and state lines, target multiple retailers and resell goods through online and physical channels. The FBI defines organized retail theft as large-scale theft conducted for resale and notes that investigations frequently begin with local law enforcement and retailers before potentially advancing to the federal level.

That structure can leave investigators piecing together activity occurring across numerous jurisdictions. A theft that appears isolated in one community may ultimately be one part of a much larger operation spanning several states.

It is also why federal ORC legislation has remained a major priority for the retail industry.

The Combating Organized Retail Crime Act (CORCA), which passed the House in May with bipartisan support, would create a federal coordination center designed to improve information sharing among federal, state and local law enforcement and private-sector partners. The legislation would also strengthen federal tools for pursuing organized retail and supply chain crime, including certain offenses involving the interstate movement and sale of stolen goods.

State ORC laws and task forces have expanded significantly and remain important pieces of the enforcement landscape. But cases stretching across multiple states illustrate their inherent limitation: jurisdiction.

As organized criminal networks become increasingly mobile and interconnected, the debate over CORCA centers on whether the government’s response should be structured to operate across those same boundaries.


Jewelers Urge Congress to Pass CORCA
Tariffs, Retail Crime Top of Mind at JA’s Annual Fly-In

Retailers and manufacturers headed to the Capitol this week to discuss tariff exemptions for diamonds and gemstones, among other issues.

Jewelers of America hosted its fly-in on Tuesday, an annual event that brings jewelers to Washington, D.C., to lobby on issues affecting the industry. Tariffs, specifically pushing for an exemption for diamonds, gemstones, and pearls, and retail crime remained the top concerns among attendees.

In addition to discussing tariffs, jewelers advocated for the passage of the Combatting Organized Retail Crime Act (CORCA).

The bill would strengthen federal coordination and equip local and state law enforcement to better identify and investigate organized retail crime groups.

It also calls for the creation of a federal Organized Retail and Supply Chain Crime Coordination Center to allow for better information sharing and multi-agency collaboration.

CORCA passed the House with a bipartisan vote of 348-60 in May. The bill must now clear the Senate to be signed into law by the president.

Jewelers stressed the importance of the crime bill to Durbin, who attended JA’s Member Meet-Up on Monday night before the fly-in, and Collins, who joined the group for dinner Tuesday night. Attendees also met with Jordan, who is chairman of the House Judiciary Committee and Rep. Dave Joyce, R-Ohio, who introduced the crime bill that passed the House.

In total, the jewelers met with almost 40 lawmakers from 10 states throughout the course of the fly-in. nationaljeweler.com


New Self-Checkout Rules Meant to Fight Theft
These are the new self-checkout rules proposed for San Jose stores

It would be the first Bay Area city to have such regulations

San Jose could become the first city in the Bay Area to place new limits on self-checkout at grocery stores and pharmacies, including a 15-item cap and a requirement to keep at least one staffed checkout lane open, under a proposal supporters say would protect workers and curb theft.

The City Council’s rules committee agreed Wednesday to study the proposal, which is expected to reach the full council early next year.

Other proposed rules include mandating a ratio of one employee for every three kiosks, prohibiting self-checkout for tobacco and locked merchandise, requiring self-checkout zones to remain in clear view of staff and law enforcement, mandating public signage informing customers of their rights and how to report violations, and establishing a partnership with Santa Clara County’s Office of Labor Standards Enforcement.

So far, only a few cities in the state — including Long Beach, Costa Mesa, and Santa Ana in Southern California — have enacted similar self-checkout regulations.

Addressing the local measure, Nate Rose, spokesperson for the California Grocers Association, argued the rules would raise grocery prices, create longer lines, and put workers in danger without stopping crime.

City officials say retail theft costs San Jose up to $400,000 in lost sales tax revenue each year, while understaffed self-checkout zones may degrade working conditions and heighten safety risks for store employees. mercurynews.com


Rolling Back Mandatory Jail Time for Retail Theft
Aurora moves to eliminate mandatory jail sentences for retail theft after Colorado Supreme Court ruling
Aurora took a tougher approach to retail theft in recent years, requiring mandatory jail time for some people convicted in municipal court. The city's current code calls for at least 72 hours in jail for retail theft involving more than $100, and 90 days for someone with one prior retail-theft conviction and 180 days for someone with at least two prior convictions.

Those mandatory sentences are now on their way out.

Aurora City Council unanimously approved an ordinance on first reading Monday that would remove the retail-theft mandatory minimums along with a number of other changes to the city's criminal code.

The move comes after a Colorado Supreme Court ruling involving cases out of Aurora and Westminster. The court ruled that when a city ordinance prohibits the same conduct as state law, a municipality can still prosecute the offense but cannot impose a punishment greater than what state law allows for that same conduct.

Aurora's proposed ordinance cites that decision in explaining why portions of the city code need to be changed.

During Monday's council meeting, Aurora City Attorney Pete Schulte emphasized that retail theft itself is not being eliminated from city code.

"Removing the mandatory minimum of three days in jail if convicted of retail theft - that's all it does," Schulte told council. cbsnews.com


Hawaii crime rate drops in 2025, new state data shows

City Council hearing to examine NYPD crime statistics and audits
 

Store Changes Create New AP Risks
When the Store Changes, the Risk Profile Changes With It

Retail stores are rarely static environments anymore.

By the D&D Daily staff

Traditional checkout lanes are replaced with self-checkout areas. Customer service desks move. Online pickup spaces expand. Merchandise departments are rearranged, entrances are redesigned and temporary displays appear seemingly overnight.

For asset protection teams, every one of those changes can alter a store’s risk profile.

Retailers have long incorporated AP considerations into major store designs, but the challenge can also come from smaller changes made between full remodels. A new fixture can obstruct an employee’s view of an aisle. Moving a pickup area can change customer traffic patterns. Adding locked merchandise can create new employee workflows and customer interactions. Even seasonal displays can affect visibility, emergency access and the way people move through a store.

That makes change management another relevant consideration for the AP function.

Rather than evaluating a location only through scheduled audits or incident reviews, AP teams can benefit from reassessing the environment whenever meaningful operational changes occur. The question becomes less about whether a store meets a fixed set of standards and more about whether yesterday’s controls still make sense in today’s layout.

Technology adds another layer. Cameras positioned for an original floor plan may become less effective after fixtures move. Electronic article surveillance equipment, access controls and other systems can similarly be affected by changes to entrances, departments or merchandise placement.

The opportunity is to make AP part of the change process earlier.

A simple review before and after a remodel, department reset or major operational shift can identify potential problems before they become established. Store operations, facilities, safety and AP can evaluate changes together rather than discovering unintended consequences later.

For LP/AP leaders, that represents a broader evolution of the role. Protecting the business increasingly means understanding how the retail environment itself is changing — and ensuring safeguards change with it.
 
 
Consumers Cautious About AI
Shoppers trust AI - to a point
Although artificial intelligence has evolved into an everyday shopping technology, consumers do not fully trust it.

More than eight in 10 (82%) global consumers surveyed for the 10th annual Future Shopper report from creative firm VML have used AI. However, the study shows AI adoption remains concentrated around everyday tasks rather than autonomous purchasing, with 58% of respondents cross-checking AI-generated product recommendations before purchasing and 33% saying they would not allow AI to make purchases on their behalf.

In addition, more than half (55%) of respondents say sponsored search results make it harder to find the best products and 53% worry AI shopping tools are commercially influenced. Almost half (49%) of respondents say AI-generated product imagery reduces trust in a brand and 48% skip content they believe was created using AI. chainstoreage.com


120 Store Closures
Cato ups store closings, cites 'current economic environment’
The company plans to close approximately 70 additional underperforming stores in the third and fourth quarters, bringing its total planned stores closures to approximately 120 stores in fiscal 2026. (As of Aug. 1, Cato had 1,057 stores in 31 states,)

Cato has struggled with slumping sales in recent quarters as its customers deal with economic pressures and cut back on discretionary spending. Sales fell 6% to $163.9 million the company’s most recent quarter. Net income fell to $1.1 compared to $6.8 million in the year-ago quarter. chainstoreage.com


Macy’s rolls out AI inventory replenishment tool
The forecasting capability is moving from pilot to broader implementation as the retailer targets improved in-stock levels and operational efficiencies.

Survey: Grocery prices to impact consumers' holiday shopping, hosting plans
Half of consumers (50%) say rising grocery costs make holiday hosting more stressful, while more than three-quarters (78%) say higher prices will affect their holiday spending decisions this year, according to a new survey from Omnisend.

Wegmans investing $110M in refrigerated hub, supply chain consolidation

Major Wendy's Franchisee Files for Chapter 11 Bankruptcy

Podcast: A Different Approach to Workplace Safety Culture