Will Crime Closures Create Retail Deserts in Some Cities?
Target closed crime-prone stores and it appears to have paid off. Why that may result in future 'retail deserts.'
Target has seen its financial standing improve after shuttering 9 locations last year.
As theft continues to be an issue that plagues America's retailers, those who track the shopping landscape say it's inevitable more stores in crime-prone areas may be forced to close.
The cumulative effect? A potentially dramatic change in the landscape, with some locales turning into retail deserts - meaning they'll have no convenient options for consumers to purchase such necessities as food, clothes and prescription medications.
Such could be a takeaway from Target'srecent earnings report: The company saw its financials, including store traffic and revenue, improve considerably. Target COO Michael J. Fiddelke cited lower "inventory shrink" - an industry term that refers to goods that can't be accounted for due to a number of reasons, including shoplifting - as a key factor in the turnaround. In years past, Target said shrinkage resulted inas much as $700 million in annual losses, according to reports. (Target didn't respond to MarketWatch's request for comment.)
But Target didn't just get lucky this past quarter: The company said it was making "progress" addressing the issue. And it's no secret that one of the ways it tackled the problem was byclosing nine crime-prone stores throughout the country last year, in locations ranging from New York City to Seattle.
"[We] cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance," the company saidat the time. "We know that our stores serve an important role in their communities, but we can only be successful if the working and shopping environment is safe for all."
Now, retail experts
warn that Target's move may be replicated by others. "It could be a big harbinger," said Burt Flickinger III, managing director of Strategic Resource Group, a retail-consulting firm.marketwatch.com
Retailers Continue to Launch ORC Blitzes
Walgreens & big chains launch anti-theft 'blitzes' & share pics of thieves' haul with Lysol spray, Hershey bars & shrimp
The blitz comes after the state's retailers lost over $8 billion due to theft
A months-long police operation led to the arrest of over 60 individuals suspected of shoplifting at several big-name retailers. The San Francisco Police Department organized a scheme to crack down on retail theft, which lasted over two months.
Law enforcement agents planned a 'blitz,' which involved
coordinated efforts of uniformed and plainclothes officers who wait to arrest criminals inside a partner business, according to a statement put out by the police department.
The department stated the blitz was meant to "help reduce retail theft and hold people who commit these crimes accountable." Retail theft throughout the country has skyrocketed, with over $121 billion stolen from retailers in 2023, Capital One reported.
The blitz occurred on several blocks, which included Walgreens and Safeway. Law enforcement reportedly seized the stolen property from the alleged thieves and returned it to the stores.
"The SFPD will continue to conduct these operations throughout San Francisco to reduce thefts at local businesses," the statement said.
The department noted that any business that wants to participate in the blitz can email the retail theft squad for more information.the-sun.com
ORC Unit Disbanded in Portland
'Who's going to investigate that if there's no detectives to investigate it?'
Portland police disband property crimes unit, sparking alarm among grocers, retail crime investigators
Over the last month, Portland police leaders have moved to
disband a unit that investigated reports of burglaries, identity theft, embezzlement and organized retail crime.
Last month's move to reassign the unit's members has alarmed state associations that represent grocers and retailers and deal with issues related to organized retail crime. The team of three detectives were transferred to the special victims and sex crimes units. A sergeant assigned to property crimes will move to patrol.
The property crimes unit's dissolution comes a little over a year since elected and law enforcement leaders announced the creation of a retail theft task force. Portland police have also done several retail theft missions to target those stealing merchandise. Reports of property crimes fell by 16% from January to July this year compared to 2023 - after having fallen by 12% during the same period from 2022. Meanwhile, crimes against people have largely remained steady in that time.
Jeremy Girard, president of the Organized Retail Crime Association of Oregon, said Day's decision was shocking since trends were moving in the right direction. The association consists of retail partners, retail investigators, law enforcement officials, prosecutors and crime analysts.
"
Stores are certainly starting to see a decrease in some of the larger thefts," Girard said. "A year ago, it was pretty common for, on a daily basis, stores to just have people come in and just fill carts as high as they could and just walk out the doors with little to no repercussions."
Some well-known businesses closed stores in the city and cited issues of theft including Target and REI. Nike made a request to the city last year for police officers to provide security for its store in Northeast Portland. The request was denied and the company ultimately closed the store later that year.
Girard said his concerns aren't about shoplifters but with crime rings stealing to make large profits.
"When it comes to these larger organized retail crime groups or the large fences that I've mentioned, where those businesses are intentionally buying and selling stolen property,
who's going to investigate that if there's no detectives to investigate it?" he said.oregonlive.com
ORC Finally 'Being Met With Full Force' in California
LA DA's Office Charges 1,500+ in ORC Crackdown Since 2019
The landscape of organized retail crime in Los Angeles County has been marked by a surge of cases and a crackdown that has seen more than 1,500 charges filed since 2019, according to a recent announcement by District Attorney George Gascón. In a press release by the Los Angeles County District Attorney's Office, it was detailed that an aggressive campaign against these high-scale thefts has led to nearly 500 charges in 2024 alone, showcasing an 89% conviction rate, a striking rise from the 64% conviction rate of 2019.
As DA Gascón puts it, the financial vitality of our communities, and the safety of citizens, are under threat but through the concerted efforts of his office's Organized Crime Division those threats are being met with full force, the resources of the justice system being marshaled. "Prosecutors and law enforcement are working harder than ever to combat organized retail theft as this serious crime continues to threaten the economic vitality of our communities and the safety of our residents," stated Gascón. Such efforts are not waning, with Gascón affirming, "We will continue to vigorously prosecute those who participate in these criminal activities, using every tool at our disposal to bring them to justice."
Notable convictions include the sentencings of Andrew Munns and Desmond Singleton for robberies of Bevmo stores, and Terrence Perryman and Kolby Williams who targeted a Chanel boutique at Saks Fifth Avenue. These are among the myriad examples illustrating the DA's commitment to addressing this burgeoning problem that has seen a pantheon of retailers, including Nordstrom, CVS, and Macy's, being targeted by organized crime. Furthermore, DA Gascón's office has had a hand in legislative efforts to reinforce the legal framework around retail theft, with Governor Gavin Newsom's signing of Assembly Bill 1802,removing the sunset date on California's Organized Retail Theft statute, ensuring its continued application.
Among the recent legislative successes featured in the DA's office statement are
bills to establish a regional property crimes task force (AB 1972), strengthen penalties for theft from vehicles (SB 905), combat organized theft (SB 982), and regulate online marketplaces (SB 1144), these pieces of legislation together fortify the state's crime prevention grid and bolster security for businesses and the public.hoodline.com
Related Coverage of California's ORC Fight
• With support of retail industry, California enacts package of bills to fight retail crime
• California leaders praise new nation-leading laws to crack down on crime
• In Case You Missed It: California Gets Tough on Retail Crime
'Distraction Thefts' Plague Multiple States in the West
Unsuspecting shoppers in multiple states fall victim to 'distraction thefts'
Shoppers in Utah, Nevada and Idaho were targeted by an interstate crime gang who were eventually captured hundreds of miles away in Wisconsin
A quiet Utah town is the latest locality plagued by "distraction thefts" against unsuspecting shoppers
carried out by "interstate crime groups" - transient criminals who travel the country to steal before crossing state lines to strike elsewhere, often affiliated with Romanian and South American crime rings.
Over the past year, St. George has seen 37 such distraction thefts perpetrated at grocery stores, retailers and restaurants. Sgt. Zack Bahlmann told Fox News Digital that the St. George Police Department began encountering the new modus operandi about three years ago.
Earlier this month, Colombian nationals Jairo Gavida-Monroy, 37, Andres Fabian Villanueva-Rodriguez, 32, and a third man were finally arrested after a string of such crimes, thanks to a months-long investigation headed by a St. George detective working with state and federal agencies.
"We have really worked to build our investigative network because of the transient nature of these crimes," Bahlmann said. "They will commit a crime here and then cross state lines. We can track these groups as they're moving and ID people from other agencies."foxnews.com
More Cops Needed to Fight Surge of C-Store Robberies
L.A. councilmember calls for more police after latest robberies at 7-Eleven stores
A Los Angeles city councilmember is calling for more police officers and resources following the latest in a string of robberies and ransacking at 7-Eleven convenience stores. Councilman Tim McOsker, whose district includes San Pedro, said in a statement that the incident is a "continuation of a pattern" happening across the city.
"This isn't just about property damage or items stolen - it is also about a victim, an employee, fearing for their safety, and a neighborhood that is both in fear and now without a convenience store on the corner," McOsker said. "It's deeply disturbing to me that
incidents like these are becoming more common."
It's seemingly the third weekend in a row that a 7-Eleven store in the Los Angeles area has been hit. Earlier this month, in the Pico-Robertson area, a group of young people ransacked a 7-Eleven store and left on bicycles, Fox 11-TV reported.
McOsker said more resources in 911 operations are needed, as well as increased LAPD staffing. "We could have stopped this at the street takeover before it escalated," he said. "That's why we need to expedite hiring in the LAPD. Our officers must be able to respond quickly to prevent these incidents from happening."latimes.com
Each Political Party Presents Two Arguments on Crime
Trump campaign hits back after Harris blames him for 'violent crime wave'
Opinion: Trump's claims about violent crime increasingly diverge from reality
4,666 Retail Closures So Far in 2024
State of retail: More store closings than openings this year as industry adjusts
Amid a string of retail bankruptcies, retail store closures have outpaced openings so far this year - the first time that has occurred in two years, a new report by analytics firm Coresight Research found.
The data marks a potential adjustment in the number of retail venues open across the nation, said John Harmon, an analyst at Coresight.
"It's not a retail apocalypse, but the U.S. has too much retail space," he said. "That needs to correct itself."
According to the Coresight report, there were
4,666 retail closures so far in 2024, compared to 4,528 store openings, meaning there were 138 more closures than openings.
Big Lots is closing one store in New Jersey, in Woodbridge. Up to 600 Family Dollar stores across the U.S closed in 2024, according to an announcement earlier this year. Stop & Shop is closing 10 stores in New Jersey.
Pharmacy chain Rite Aid has closed more than 40 stores in New Jersey since filing for bankruptcy last fall. Bob's Stores closed its one New Jersey location, in Freehold.
"We are currently in a phase where a lot of retailers are rationalizing their store networks," said Neil Saunders, a retail analyst and managing director of retail at GlobalData. "There have also been a number of retail bankruptcies. Both things are pushing up store closures."
Investment firm UBS estimated in April that 45,000 retail stores could close over the next five years.northjersey.com
CVS Overtakes Walgreens As Most Popular Drugstore Retailer
Who is Winning the Retail Pharmacy Consumer Battle?
CVS Health overtook Walgreens as the most popular drugstore retailer, a new report found. However, there is no saying for sure if CVS will keep this lead.
CVS Health has recently overtaken Walgreens as the most popular drugstore retailer among drugstore/pharmacy shoppers. Over the last several quarters, the companies have been flip-flopping between first and second place. It's not clear whether CVS will be able to sustain this lead given the similar profiles it has with Walgreens.
But one thing is clear: Both have a hefty lead over the other retail pharmacies -
including Walmart Pharmacy, Rite Aid and Kroger - mentioned in the quarterly survey from Coresight Research.medcitynews.com
Mastercard to cut 1,000 employees in restructuring
FDA OK's new COVID vaccine shots for fall 2024 from Pfizer and Moderna
Last week's #1 article --
Amid retail theft crackdown, Oakland Grand Lake merchants say more help is needed
