Retail crime in US skyrockets, causing $112.1 bn loss in 2022: NRF

The average shrink rate in financial year 2022 (FY22) rose to 1.6 per cent, up from 1.4 per cent the previous year. These rates can vary significantly across retail sectors, but nearly two-thirds (65 per cent) of retail shrink is due to internal and external theft, as per the 2023 National Retail Security Survey.

Organised retail crime (ORC) continues to be a major concern, particularly because of increased levels of violence. The survey found that more than two-thirds (67 per cent) of retailers reported an escalation in violence and aggression from ORC perpetrators, compared to last year.

Retailers are taking multiple steps to curb these losses. While enhancing loss prevention and asset protection measures, some retailers have also resorted to closing specific store locations (28 per cent), reducing operating hours (45 per cent), or altering their in-store product selection (30 per cent).

Shoplifters are not only targeting high-value items but are also going after everyday products with quick resale capabilities. In addition to traditional targets, new categories like outerwear, batteries, energy drinks, designer footwear, and kitchen accessories are now on the radar.

The top five cities/metropolitan areas severely impacted by ORC are Los Angeles, San Francisco/Oakland, Houston, New York, and Seattle.

When it comes to resource allocation, 34 per cent of retailers have increased their internal payroll to support risks, and 46 per cent have ramped up the use of third-party security personnel. Moreover, over half (53 per cent) have boosted their technology and software solution budgets. Violence being a primary concern, 54 per cent of retailers are either increasing or planning to increase employee workplace violence training.

Policy reform remains a critical component in combatting ORC. Nearly three-quarters (72 per cent) of retailers have noticed an increase in the average value per theft incident where felony thresholds were raised. Another 67 per cent reported a rise in repeat offenders associated with initiatives to reduce or eliminate cash bail. An overwhelming majority (93 per cent) support federal ORC legislation.

Fibre2Fashion News Desk (DP)