Everyday products like toothpaste, chocolate, washing powder, and deodorant are increasingly being placed under lock and key in US stores due to a rise in petty theft and organized shoplifting. Retail giants such as Walmart, Target, CVS, Walgreens, Home Depot, and Foot Locker have expressed concerns about theft-related issues impacting their businesses."Organized retail crime, and theft in general, is an increasingly serious issue impacting many retailers," said Lauren Hobart, CEO of Dick's Sporting Goods. The impact of theft on their inventory has been significant, affecting their financial results and outlook for the year.Target's CEO, Brian Cornell, noted a 120 percent increase in theft incidents involving violence or threats of violence during the first five months of the year. This situation is characterized by an "unacceptable amount of retail theft and organized retail crime."These challenges come at a time when interest rates have risen, impacting consumers' ability to make purchases and businesses' expansion plans. The National Retail Federation's 2022 retail security survey estimated that retailers lost $94.5 billion nationwide due to "shrink" in 2021, which includes factors like staff theft, shoplifting, and administrative errors.To combat theft, stores have implemented security measures such as transparent walls with locked shelves, padlocked chains on refrigerators, and call buttons in aisles for staff. Some locations have also reduced inventory on unprotected shelves to limit shoplifting.However, these measures are not always effective. In some cases, thieves have resorted to extreme tactics, such as using blowtorches to melt locked display cases, as seen in a Walgreens outlet in Queens, New York.Residents in Queens have expressed concerns about safety in certain CVS outlets, and retailers are sometimes advising staff not to intervene in thefts or contact the police for their safety. Some stores are even considering closure due to the significant impact of theft and violence on their operations.The rise in theft has the potential to increase prices for consumers, and there are reports of "flash rob" incidents where groups rush into stores, seize items, and flee. This challenging situation presents ongoing concerns for retailers and shoppers alike.
