Retail Theft Surges to $112 Billion in 2022, Forcing Store Closures and Boosting Security

Losses from retail crime reached $112 billion in 2022, up from $93 billion in 2021, according to a National Retail Federation survey. Theft accounted for 65% of losses.
46% of retailers increased third-party security and 34% increased staff to combat theft and crime. 53% are boosting employee safety training.
45% of retailers reduced hours, 30% altered product selection, and 28% closed locations due to theft and violence concerns.
Target announced closures of 9 urban stores citing safety and theft issues. Los Angeles ranked #1 for organized retail crime.
California's attorney general launched an initiative against organized retail crime with retailers to increase information sharing and aid prosecutions.

seattletimes.com

Relevant topic timeline:

8/22/2023

Retail's true crime story: Top execs say rise in theft is cutting into earnings (NYSE:M)

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.

8/24/2023

Dollar Tree says theft is such a problem it will start locking up items or stop selling them altogether

The rise in retail theft nationwide is being blamed for Dollar Tree's decline in gross profit margin, prompting the company to take defensive measures to prevent further losses.

9/8/2023

Retailers Blame Theft for Shrink Losses, But Data Shows Complex Causes Behind Inventory Shortfalls

A number of retailers are attributing their lackluster profits to shrink, but the extent of the problem varies widely among companies and may not be as dire as some have suggested, with losses generally in line with the retail industry standard of 1% to 1.5% of sales, according to a CNBC analysis.

9/26/2023

Retail Shrink Hits $112B in 2022, Driven by External Theft and Organized Crime

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.

9/26/2023

Retail Theft Surges to $112B in 2022, Forcing Retailers to Increase Security and Remove Targeted Products

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.

9/29/2023

Retail Theft Surges, Forcing Target and Other Major Retailers to Close Stores

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.

10/26/2023

Retail Theft Surges to $112B in U.S., Hits Cities Like L.A. and S.F. Hardest: New Report

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.

10/26/2023

Los Angeles Tops List for 5th Year as Organized Retail Theft Surges in California

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.

Topics

Posted 9/27/2023, 1:53:25 AM

Retail Theft Surges to $112 Billion in 2022, Forcing Store Closures and Boosting Security

Losses from retail crime reached $112 billion in 2022, up from $93 billion in 2021, according to a National Retail Federation survey. Theft accounted for 65% of losses.
46% of retailers increased third-party security and 34% increased staff to combat theft and crime. 53% are boosting employee safety training.
45% of retailers reduced hours, 30% altered product selection, and 28% closed locations due to theft and violence concerns.
Target announced closures of 9 urban stores citing safety and theft issues. Los Angeles ranked #1 for organized retail crime.
California's attorney general launched an initiative against organized retail crime with retailers to increase information sharing and aid prosecutions.

seattletimes.com

Relevant topic timeline:

8/22/2023

Retail's true crime story: Top execs say rise in theft is cutting into earnings (NYSE:M)

8/24/2023

Dollar Tree says theft is such a problem it will start locking up items or stop selling them altogether

The rise in retail theft nationwide is being blamed for Dollar Tree's decline in gross profit margin, prompting the company to take defensive measures to prevent further losses.

9/8/2023

Retailers Blame Theft for Shrink Losses, But Data Shows Complex Causes Behind Inventory Shortfalls

9/26/2023

Retail Shrink Hits $112B in 2022, Driven by External Theft and Organized Crime

9/26/2023

Retail Theft Surges to $112B in 2022, Forcing Retailers to Increase Security and Remove Targeted Products

9/29/2023

Retail Theft Surges, Forcing Target and Other Major Retailers to Close Stores

10/26/2023

Retail Theft Surges to $112B in U.S., Hits Cities Like L.A. and S.F. Hardest: New Report

10/26/2023

Los Angeles Tops List for 5th Year as Organized Retail Theft Surges in California