Several major retailers, including Dick's Sporting Goods, Lowe's, Target, and Macy's, have cited an increase in theft as a factor in their reduced earnings and are taking steps to address the problem.
Nordstrom executives stated that levels of theft at their stores have not exceeded expectations, despite a recent massive robbery at one of their locations, although they acknowledged that losses from theft are at historical highs and need to be addressed.
Retail theft, known as "shrink," is becoming a growing problem for retailers, leading to concerns over profits and prompting companies to take preventative measures, such as installing locked cases and removing certain items from stores.
Retailers in the US, including Walmart, Target, and CVS, are experiencing an increase in theft and organized shoplifting, leading to heightened security measures such as locked shelves, padlocked refrigerators, and scattered call buttons, in an effort to combat the rising issue that is impacting their earnings.
Retail theft has increased in recent years, but its impact on retailers' profits remains consistent, with losses from internal and external theft making up 65% of total shrink, according to the National Retail Federation's 2022 survey.
Target will close nine stores in major cities across the US due to violence, theft, and organized retail crime, citing the threat to the safety of its employees and customers as well as unsustainable business performance.
Organized crime rings in major US cities are increasingly targeting retail inventories, leading to a rise in financial losses for retailers and prompting them to implement measures such as increasing internal payroll and employing third-party security personnel.
Losses from retail crime have increased in 2022, leading retailers to implement more security measures and make changes to their business operations, according to a survey by the National Retail Federation.
Target is shutting down its store in East Harlem due to theft and crime, despite efforts by New York officers to protect the store and reduce incidents.
Multiple groups of looters targeted retail stores and a small business in different neighborhoods of Philadelphia, resulting in arrests and the recovery of stolen merchandise in some incidents.
Following Target's announcement that it will close two Seattle stores due to safety concerns, questions arise about whether crime was the primary factor behind the decision, as police data points show that the most police responses this year were not directly related to the Target stores in the affected areas.
Business leaders express alarm as Target announces the closure of nine stores due to large-scale theft, prompting concerns about the growing problem of organized retail crime.
The former vice chairman of Target expressed his distress over the escalating theft and crime rates that have led the company to close stores in liberal cities due to concerns for public safety.
The rise in theft and violence at major retailers like Target is not only impacting the companies themselves but also negatively affecting the communities they operate in, leading to store closures, job losses, and reduced tax revenue.
Former Best Buy CEO Hubert Joly has commented on Target's mass store closures, highlighting that it is a reflection of rampant retail theft in our society and the tensions that companies need to address.
Researchers at the Loss Prevention Research Council, located at the University of Florida, are working with major retailers to develop technology to prevent retail theft, including locked cases with phone number verification and facial recognition, as well as communication systems between nearby stores to share information about shoplifters.
Target is closing nine stores in four metropolitan areas due to organized retail crime and other pressures from the Covid-19 pandemic, including the shift to remote work, the rise of e-commerce, and ongoing worker shortages.
The National Retail Federation's 2023 Retail Security Survey reveals that major U.S. cities, including Los Angeles, Oakland/San Francisco, and Houston, have been heavily impacted by organized retail crime, resulting in significant inventory shrink and financial losses for retailers.
Los Angeles remains the top city in the US for organized retail theft, with the average "shrink rate" increasing to 1.6% and resulting in $18.2 billion in losses, prompting the creation of a regional task force to combat the issue.
Retailers may be exaggerating the extent and impact of theft in order to divert attention from other issues affecting their business, such as weak demand and mismanagement, according to retail analysts, who suggest that theft is just one of the many structural issues the industry is facing.
Organized retail crime is on the rise in major cities across the U.S., with inventory losses exceeding $112 billion, leading to concerns about both financial losses and the safety of employees and customers.
