National Retail Federation Plans ‘Fight Retail Crime Day’ in Washington, D.C.
As national chains and independent retailers continue to try to safeguard against retail theft, the National Retail Federation is ramping up efforts to combat the problem by declaring Oct. 26 “Fight Retail Crime Day.”
The organization’s president and chief executive officer Matthew Shay and some members will be rallying together with congressional leaders in Washington, D.C. Last year as a percentage of total retail sales, “retail shrink” accounted for $112.1 billion in losses, compared to $93.9 billion in 2021, according to the NRF’s National Retail Security Survey.
More from WWD
EXCLUSIVE: Sorel President Talks Expansion Plans, Williamsburg Pop-up and Chloe Bailey Collaboration
RELATED: Rising Retail Crime Is Not Just an American Problem: U.K. Businesses Lost $2.13B Last Year
Target recently announced the closures of nine stores in four states due to organized retail theft. Other major chains like Home Depot, CVS and Walmart have also flagged the problem. This month’s call to action in the Beltway is designed to encourage the passage of the Combating Organized Retail Crime Act, which would establish a national coordination center and would combine resources from federal, state and local law enforcement agencies with retail industry representatives to curb organized retail crime.
Select stores in Seattle, Los Angeles, New York, Philadelphia, San Francisco and other major cities have been dealing with the issue by hiring on-site security personnel, installing more surveillance cameras, locking up certain merchandise behind plexiglass and advising employees to take a hands-off approach to any shoplifting incidents.
RELATED: Rash of Smash-and-grab Robberies in Los Angeles Leave Retailers Unsettled and Angry
Consumers have also become more cognizant of the problem, according to the NRF’s recent survey. Fifty-three percent of respondents said they believe retail crimes like shoplifting have increased in their communities since the pandemic. In addition, 70 percent of retailers believe organized retail crime has become a more prevalent threat over the last five years.
Having just wrapped up its annual conference with 500 retailers on Thursday night, the Loss Prevention Research Council’s director Read Hayes said safeguarding vulnerable workers and shoppers is “job one” for retailers, who are probably being exposed to unprecedented levels of ongoing theft and aggression. He said communities with significant retail theft need to establish safer, more stable neighborhoods.
He referenced last month’s ransacking of multiple stores in Philadelphia (reportedly organized on social media and resulting in dozens facing criminal charges), and said that those kinds of incidents push shoppers away and can displace employees until repairs are made. “A store is a vital part of any healthy ecosystem. Retailers also pay for a lot of the taxes that support the services right there and employ a lot of people,” he said.
RELATED: California Governor Dispenses Millions of Dollars to Get Tough on Rampant Retail Crime
In some areas, local authorities and prosecutors have had to prioritize violent crimes, due in part to reduced staffing in some locations, Hayes said. “But so much of what is going on is paying for, and leading to, that violent crime that they are talking about.”
While the NRF is starting with legislators, another grassroots effort is underway. Hayes said the Retail Industry Leaders Association has initiated a program where they take prosecutors to spend a day in a store to hear first-hand accounts from store employees and watch surveillance videos of crimes to get a better sense of what’s going on. “Last night a big-box primarily outdoor retailer told me there was one location in Philadelphia where they lost about $200,000 to a dishonest employee who was colluding with outsiders. They have video and extensive evidence and the police detectives [allegedly] said, ‘Sorry, we can’t prioritize. That’s retail crime. We have to work on violent crime.’”
In addition to Philadelphia, the LPRC director, who also works as a University of Florida research scientist, cited “the destabilization and harm” that has occurred in Portland, Ore.; Seattle; Austin; Albuquerque, N.M.; Chicago; Milwaukee, and San Francisco that has prompted some retailers to exit.
Best of WWD
