High levels of theft push stores to remove items from shelves, add security and reroute layouts

Posted by Noelle Montes on Wednesday, July 24, 2024

Retailers across the country are continuing to deal with an increase in shoplifting that is hurting bottom lines and starting to lead some stores to lock merchandise up or pull items off the shelves entirely with little relief in sight.

Stores across the country have reported thousands to millions of dollars in losses over the last few years during a nationwide wave of increased property crime and theft that businesses from Target to family-owned shops have said is impacting their ability to turn a profit.

The problems are most prevalent in the nation’s largest cities, but has also impacted areas nearby and in smaller states. Retail groups and business owners have pushed for increased law enforcement and prosecution of offenders, an issue that comes with partisan disagreements in some parts of the country.

The National Retail Federation’s 2022 Retail Security Survey found retailers lost $94.5 billion to shoplifting in 2021, an increase from $90.8 billion the year before.

How companies, governments and business owners are dealing with the problem across the country:

PULLING NAME BRANDS OFF THE SHELVES

A Giant Food location in southeastern Washington, D.C. is pulling multiple brands off the shelves after lost $500,000 in theft at one store.

The store is removing national health and beauty brands like Colgate toothpaste, Tide laundry detergent and Advil and replacing them with private label items. Giant has installed cameras all over the store and hired armed security at both entrances but have been unable to slow the levels of theft.

“We need to be able to run our store safely and profitably, and we take these responsibilities seriously,” the company said in a statement to WJLA.

The decision to remove the items comes after the store tried closing off entry and exit points in the store in addition to bulking up security, which has not provided significant progress against the problem.

Giant stores in nearby northern Virginia have also reduced store hours and items that can be bought at self-checkout lanes trying to reduce theft.

LOCKING ITEMS

Multiple chains and retailers have started to put more items behind locked cases or counters to avoid people walking out without paying.

Drug store chain Rite Aid said in an earnings call at the beginning of the year the company is looking at "literally putting everything behind showcases to ensure the products are there for customers who want to buy it."

Other retail giants like Target, Walmart and Sephora have also added or expanded the amount of items that are locked in recent years.

A hardware store in Utah was forced to lock up expensive tools and closed a set of doors to limit customers coming and going from multiple areas.

ORGANIZED CRIME TASK FORCE

Several state police departments have created or are in the process of developing specialized units to deal with organized shoplifting rings.

In Washington, the state’s attorney general created a unit specifically to address organized crime rings that steal items from retailers and cause billions in losses every year in the state. The unit is trying to take down groups who take merchandise and then resell them online for profit.

Local departments in Utah are also partnering with stores for data and information on theft to try to crack down on theft and pick up on trends to help capture offenders.

The California Highway Patrol’s task force is expanding its operations to Los Angeles after a three-day stint in Fresno led to dozens of arrests and recovery of thousands in stolen goods.

PRIVATE-PUBLIC SECURITY PARTNERSHIPS

In Portland, Oregon, grocery chain Fred Meyer was prompted to ramp up its security and develop a partnership with the city due to an increase in theft and crime in the area. Stores remade the traffic flows inside the store, bulked up on security and started checking receipts as people left the store to deter more theft.

"We truly want to work together with the city and the police department to create solutions and prioritize safety. And lead the way for other retailers and businesses in our area. We want to continue to grow and make investments in this area" Fred Meyer president Todd Kammeyer told KATU during the unveiling in June.

State lawmakers have also passed measures in Oregon to take on the shoplifting problem, including more funding for state and local police departments dealing with organized retail theft rings.

Retail organizations have also blamed the rise in the lack of prosecution for many property crimes. Democratic Gov. Tina Kotek signed a bill earlier this year that increases penalties and facilitates the prosecutions of organized retail theft, allowing prosecutors to charge suspects across county lines with a maximum sentence of up to three years for repeat offenders.

CLOSING UP SHOPS

Big-name brands and locally owned shops have opted to just close locations due to the string of break-ins and theft that are costing thousands of dollars.

Portland's flagship REI store announced it will be permanently closing to due crime and concerns over employee and customer safety earlier this year after 20 years at the location.

"The safety of our employees, members, and customers is always our number one priority. Portland has been dealing with increased crime in our neighborhood and beyond," REI said in a statement.

Starbucks closed 16 stores across the country, citing issues with crime at locations that had repeated incidents of break-ins and other issues.

Multiple businesses have also closed in San Francisco due to problems with crime in shoplifting, including Whole Foods, Walgreens and Old Navy.

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