Retail Theft – Its Impact Is Far Reaching And Very Costly

Retail theft has become a nationwide problem. We heard about it first in San Francisco, but it has spread across the U.S. Now there are almost daily incidents by groups of thieves making off with large quantities of merchandise. In response, retailers continue to look for ways to provide safe, secure shopping and working conditions according to the National Retail Federation.

Here are some facts.

1. Retail theft Is a serious, widespread problem. A daily review of national and local news highlights that the situation has reached an epidermic level. And, it has gone beyond individual theft to become a more organized operation. Shoplifting is no longer an invisible act of concealing merchandise – brazen scofflaws are openly stealing from national retailers and local businesses. Some retailers are curtailing their hours or even closing their doors due to theft. These criminal acts are beyond a by-product of a challenging economy or mental health concerns. The frequency, scale, and number of people stealing tells a different story.

Last week, 496 I-pads and other electronic gear were stolen from an Apple store in the Alderwood Mall in Lynwood, Wash. The thieves entered through a hole from an adjacent store. The cost is estimated to be $500,000. This is just
just
an example of the magnitude of theft.

2. Stolen items are not for personal use. Shoplifting to resell stolen merchandise is now part of an organized retail crime enterprise. In the past, shoplifters typically stole goods for personal use and grabbed specific items and quantities to meet their own needs. When a shoplifter walks out with $200,000 in beauty care products or power tools, it is not for personal use. Shoplifters might be stealing in order to enjoy a financial windfall or feed an addiction; they are selling the products to a fencing operation, pawn shop, or other illicit businesses for cash or drugs, etc.

3. Widespread retail theft impacts the customer experience. The consequences of this rise in large-scale shoplifting disrupt shopping and retail operations in many ways. Shoppers expect merchandise to be in stock and readily available for purchase. When items are unavailable for purchase, or a customer must summon and wait for an associate to unlock a product that costs less than $20, frustration mounts and consumers lose confidence in their local retailers. Worse, reduced store hours or store closings due to theft inconvenience shoppers and force some to travel farther for everyday needs. Products at all price points are at risk these days; it is not just luxury items with high price points. The items snatched are so varied that many drugstores now even lock up inexpensive products due to thefts.

4. Retailers understand the impact on their business and have been forced to act. Retail executives, asset protection personnel, and store associates fully recognize the impact retail theft has on their business, customers, and the industry. In response, businesses are incurring new costs, revising their operations, and developing new strategies to deal with customer service issues.

5. Communities must respond to the issue. Public leaders are feeling the pressure because these thefts affect both bottom lines and public safety. Some states have begun to re-structure and/or enact new laws or create tasks forces to go after these criminal groups. Communities that bury their heads in the sand will eventually recognize far greater issues. It is hard to say a problem does not exist when communities hold press conferences to reassure citizens that it remains safe to shop in local stores.

6. It will take a “whole community approach” to resolve. This is not a retail-only problem. Curbing retail theft is a national problem says the NRF, one that often involves organized crime groups that work across local and state lines. It requires actions from various stakeholders. Retailers must continue working with law enforcement and communities to provide data, report incidents, and support investigations. Law enforcement must partner with the retail industry across communities to target and capture those coordinating and leading these organized enterprises.

POSTSCRIPT: When you ask a store employee why certain items are locked up, you will hear story after story about theft. You may also hear how brazen and open shoplifting has become. It is unique to the retail trade. Doors are open and anybody can enter the store – often through multiple locations that can make security challenging. In addition, we also hear too often of ‘smash and grab’ tactics that target storefronts. There is a Crime Act of 2023, that sits in the Senate and the House. It will help in bringing national recognition to the problem. A solution must be found.