Shoplifting rings and weak economy spur retail theft
Filed under: Economy
Amid all the cheer of the holiday season, retailers know they'll also be attracting some sticky-fingered shoppers. And this year's weak economy is making the fight against shoplifting only more difficult. Retailers lost $36.3 billion to theft in 2008, up from $34.8 billion in 2007. While no projections are available yet for 2009, signs are that the problem is getting worse, says Joseph LaRocca, senior adviser on asset protection of the National Retail Federation (NRF). Fewer people are being detained in stores for shoplifting, but when they are stopped, they're more likely to run and even attack store employees, says LaRocca.
"Shoplifters are getting more aggressive," he says. "They're fighting, they're abusive, they're running.... It's a very disturbing trend."
LaRocca attributes this escalation to the rise of shoplifting rings, gangs that steal large quantities of products for resale. These thieves are the reason you often find razor blades under lock and key in your local drugstore, says LaRocca, because small items that can be easily resold are a favorite target of pro shoplifters.
"They're very organized, and they're very skilled," says LaRocca. "They'll steal thousands of dollars in five minutes." They may even open entire stores stocked with stolen products, he says.
Retailers are troubled enough by this trend that they're pressing the U.S. Congress to enact laws to facilitate federal prosecution of shoplifting gangs. A House subcommittee is holding hearings Thursday on the role of federal law enforcement in fighting the retail crime rings.
"A Matter of Greed"
LaRocca disputes claims that economic desperation could be driving a rise in shoplifting. The data show that the type of merchandise popular with shoplifters during this recession is still very similar to what was stolen years ago, he says.
"It's not a matter of need. It's a matter of greed," he says. "You don't need a $1,900 handbag.... Do you need a video game?"
Internet sales have given rise to a phenomenon known as "e-fencing," where thieves will sell stolen goods online, says LaRocca. They can quickly unload stolen merchandise by selling it at 60 to 80 cents on the dollar and face a lower risk of capture, thanks to the web's anonymity. They may appear to be legitimate vendors, with good customer-satisfaction scores and feedback, but a price too good to be true would be a tip-off that you're dealing with stolen goods, says LaRocca.
Look the Other Way, at Your Own Risk
While the recession may not necessarily make shoplifting more likely, cash-strapped consumers may be more willing to turn a blind eye and buy goods off the back of the proverbial truck. If the reader comments on DailyFinance are any indication, there's little sympathy for retailers' losses.
"Consumers are going to these alternative places to save money, and the crooks know that," LaRocca says. "Unfortunately, some consumers look the other way."
But that can cost them, he warns, because you can't count on the quality of the product you're getting. Even if you get the real thing and not a counterfeit, the shoplifters may not be handling and storing merchandise properly to avoid spoilage, says LaRocca.
The NRF recently added several products, including Alli weight-loss pills, to its watch list of items consumers should avoid buying at auction websites. The NRF list includes a variety of items popular with thieves, including over-the-counter remedies, testing kits, razor blades, Dyson vacuum cleaners, high-end liquors and Red Bull energy drinks.
Crime-Fighting Technology Is Costly
Some technologies can help curb what stores diplomatically call "inventory shrinkage," but retailers don't necessarily want to spend on them while fighting for every cent of profit, says Dilip Sarangan, industry analyst for security at consulting firm Frost & Sullivan.
"A lot of retailers don't see the value...a lot of retailers don't think there's much they can do," to stop shoplifters, he says.
Sarangan mentioned digital video surveillance as one useful tool for both catching and prosecuting shoplifters. In fact, experts say a zero-tolerance policy on prosecuting shoplifters can be a good deterrent in the case of your average five-fingered-discount seeker, if not the professionals.
Security specialists also champion radio frequency identification (RFID) tags -- small chips that are attached to products and send out a radio signal -- as both a useful tool for inventory management and security, but cost has has been slowing RFID's adoption.
For now, stores continue to depend mainly on security guards and those big plastic inventory-control tags that have to be removed at checkout. The problem "can be fixed, but it's not something retailers seem to be willing to spend on," Sarangan says. "In an environment when it's all about cost-cutting, it's hard."
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Reader Comments (Page 1 of 3)
11-04-2009 @ 9:02AM
sgentilejr said...
The problem "can be fixed, but it's not something retailers seem to be willing to spend on," Sarangan says. "In an environment when it's all about cost-cutting, it's hard."_______________________________AS the article stated, the problem can be fixed if the stores spend more money on security. It appears the stores rather lose $35 billion worth of merchandise, than hire more people for security. The stores created this growing problem for themselves by not protecting their own stores and making themselves easy targets.
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11-04-2009 @ 12:30PM
mickey said...
Screw the store. Shoplifters aren't doing anything different than the stores are. The stores steal from customers every day. They raise prices at will. Restaurant owners steal from customers by making us pay for the waitress/waiter's wage through tips. Stores won't protect their merchandise so they make honest customers pay for things that are lost through price increases. Screw all of you. I knew a Circuit City manager who stole 5 laptops but didn't get caught and then they fired a clerk for drinking a coke. Screw all of you idiots.
11-05-2009 @ 10:21AM
John said...
For some people desparation seems to override the difference between right and wrong and they wind up choosing "wrong". Why? Lack of faith in God? God promised to take care of our needs, provided that we follow His ways. Nothing wrong with that. We do what our employer tells us to in exchange for a paycheck otherwise we will get fired and then no more paycheck. So, why is it so hard for people to do what God wants us to do? Would you work on your car knowing nothing about them? No, you would take to someone you trust that knows how to. So why do we resist the One that can fix our lives and take care of our needs, give us total peace, joy and happiness and freedom from the bondages of our lives? - http://www.itrustgodonly.com
11-04-2009 @ 9:32AM
Lord Enki said...
What did you expect when people are desperate.
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11-04-2009 @ 9:48AM
KJW said...
There are a lot of problems with catching and detaining shoplifters. I've worked in retail management and unless you see, absolutely without a doubt, someone steal something, then follow them around to make sure they don't ditch it, you cannot approach them. You aren't supposed to touch them either. The legal liability to retailers is tremendous. If they approach the wrong person, that's a lawsuit. If they physically touch a shoplifter, that person might sue for assault. Or if the shoplifter fights back and hurts an employee, that's another lawsuit. Even the tagged merchandise isn't that effective... if someone "beeps" and keeps going, there are limits to what they can do to stop the person. So the trade is... pay more money when they are already scrambling to make a profit on measures of dubious value... or suck it up and try to offset losses with volume while trying to find low cost methods to deter theft. The potential losses for making mistakes are much greater. The base problem is the lack of honesty that pervades society and the self centered attitude of these thieves. They don't care who they hurt, whether it's the retailer or the employees or the customers who are charged higher prices to offset the losses. I can understand stealing to survive if needed... but I doubt that this is the case with the majority of these criminals.
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11-04-2009 @ 8:43PM
Jim WalkeMCI,PI said...
Dear KJW:
While your comment carries the exact professional agrument seen within the security and prevention departments; It's high time for a stronger pro active strategy on the part of a strong retail industry. All your points are true to the core: Observation, detection, apprehension, only when you've followed the shoplifter(s), can identifier the merchandise, in some cases a legal situation in court, the defense may ask a store employee how much the alleged stolen item cost, what color, manufactuer,price,etc. Lot's of things happen once you detain a suspected shoplifter. Even worst is the fact, is that, 80% of retail store security guard's aren't trained in observation,detection and apprehension of Shoplifter's, a hard egg to fry for the greater risk in persecuting shoplifting theft cases.
Jim Walker,MCI,PI
Richmond,VA
11-04-2009 @ 10:04AM
jj said...
And the ring goes around. It's not necessary to steal, if all those products were made in U.SA. But remember that we are consumers only in this country as almost all is made in China or other countries that exploit people pretending to be given jobs. How many people can we employ just with the junk that Target sells? Man needs jobs not hadouts.
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11-04-2009 @ 10:51AM
lpi2007 said...
BECAUSE OUR GOV. MAKING MONEY UNDER THE TABLE, THIS IS HOW SOME PEOPLE HAVE TO LIVE, THIMGS HAVE CHANGED FOR THE WORST, NO JOBS OTHER THAN SALES BUT PEOPLE DON'T HAVE MONEY, WHAT CAN A PERSON DO???????????
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11-04-2009 @ 10:52AM
Wolfhound said...
When I went to college I worked for a couple of the largest retailers in the country. After eight years, it was my observation that the biggest theives to ever hit those stores were all employees. Specifically, the upper level managers and the "loss control" people. They stole everything that wasn't nailed to the floor, including cash.
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11-04-2009 @ 10:59AM
mythoughts said...
I've worked retail for employers who try to get by on the cheap with only one employee. I know while I was busy either waiting on customers, going in the stockroom, or ringing & wrapping up sales shoplifters had a free for all. If the idoit had only hired another employee for minium wage this might have been prevented. I am sure professional thiefs know of type this situation , but the employer only see what they think they save in wages.
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11-04-2009 @ 11:04AM
ROLLIN said...
We have a legal system that coddles the criminal and persecutes the victim, so what can we expect? More of the same coming our way from America's left. How far will the pendulum swing before it heads back towards sanity? And perhaps beyond......
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11-04-2009 @ 11:09AM
charly said...
How about Walmart- we entered store , alarm went off, we stopped nobody approached us. We left store after an hour, alarm went off. Greeting came screaming after us. My 95 Mom in a wheel chair on oxygeon and I went back in store, greeter again screamed at us to come to center front of store. 2 clerks quickly came over with their arms crossed and surrounded us.. They detained us, searched our packages, poking all around Mom in her wheel chair, took her purse away and ran it through a scanner. Then she said did you hear that, something set the alarm off. they never told us what it was. She just sneared and said , sorry I know this was embrassing. Yes I called the manager after I got my Mom safely home. He was a belligerent jerk who told me to never come in the store again and then hung up on me. .
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11-04-2009 @ 6:47PM
Rob said...
This was obviously a violation of Wal Mart Corp policy by employees and a managment team that either wasn't trained properly or disreguarded their training. I have worked in the Loss Prevention field and also work for a security company that has Loss Prevention contracts with Wal Mart. Wal Mart's policies as well as most retailers are pretty clear on EAS tag activation. If the sensor goes off all they are allowed to do is request the bag that you have your purchase in and attempt to match the items with your recipt, then check to see if any EAS tags failed to be deactivated. This is for at least two reasons 1) retailers often forget to deactivate EAS tages because most cashiers do not know where they are located 2) the retail employee cannot be sure that you did not already purchase the item somewhere else and that the place you purchased it failed to deactivate it. I would call the District Loss Prevention Manager or Regional Loss Prevention Manager not the store managment.
11-04-2009 @ 11:31AM
Ernest said...
They worry about caching a shop lifters who is stealing food clothes or maybe and an Xbox 360. They should be going after the real shop lifters; Wall Street, The US government, The IRS, Banks, the Federal Reserve and Insurance companies.
I am getting rob every time I use a credit card, pay taxes or pay for insurance and health care. I am even getting rob when I pay my utilities and buy fuel to fill my car up.
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11-04-2009 @ 1:15PM
Not Buying It said...
State your case in the election booth, not a website. If you put as much effort into changing your government and less feeling sorry for yourself, then MAYBE you coul be a happier person.
FYI... Stop using a credit card, if you don't like to be screwed.
11-05-2009 @ 10:05AM
encyclopedia said...
I agree with Ernest, "They worry about caching a shop lifters who is stealing food clothes or maybe and an Xbox 360. They should be going after the real shop lifters; Wall Street, The US government, The IRS, Banks, the Federal Reserve and Insurance companies.
I am getting rob every time I use a credit card, pay taxes or pay for insurance and health care. I am even getting rob when I pay my utilities and buy fuel to fill my car up."
As far as I'm concerned why should I play fair when all is not fair at the World's Fair.
11-04-2009 @ 11:31AM
dajt57 said...
get used to it folks. we are bringing back the republican party that just gave everything it had for 8 years to make sure your top wage is $10 an hour and you have ZERO benefits. be joyful for that.
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11-04-2009 @ 11:37AM
Glenn said...
This situation is a perfect example of what happens when the income disparity between rich and poor is at an alltime high! I'm not condoning theft but when the minimum wage is as low as it is today in comparison to that of the average wage earner makes and there are no jobs even if one wanted to work..................what do you think people will resort to in order to pay their bills ?!?!? When people see executives take home 400 million per year or athletes garnering 40 million per annum for playing a game; why would anyone feel that working for minimum wage and no benefits is a fair
payment for their labor ?
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11-04-2009 @ 12:30PM
wes said...
it's what happens when only the wealthy have spending money
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11-04-2009 @ 12:50PM
sunny valentino said...
Maybe if the rich wasn't stealing from the poor, and the rich only getting richer, we wont have these kind of problems, stealing is not a problem, its actually a trend from human existance, but the rise of it, is , just b/c of our great rich american enterpernuers that make a killing in the resale profits, just way too expensive, and with minimum wages theyre only hurting the economy even more, not giving back to its own, look at small towns with rich people like PERRY and PERRY in Kinston NC they wont allow franchise stores and big companies to settle in, bc they want to rent out and own these small business for there own good, they run the city with old money and spend it outside of the city so it wont allow money to rotate in it, thanks for reading just another middle class citizen stating the facts
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