Rising retail thefts are prompting stores to lock up essentials

Seeing rising retail and grocery thefts, stores have resorted to locking up even essentials like toothpaste, deodorants, detergents, cold and flu medications, beauty products and frozen food items.

Increased shoplifting activities have eaten into the earnings of major retailers, including Walgreens, Home Depot, CVS, Dick’s, Target, Dollar Tree and Ulta Beauty. 

Nordstrom is the latest victim, where a group of 30 masked people “flash robbed” $100,000 worth of merchandise in its Los Angeles store in August.

California reclassified a few lower-value felony theft offenses as misdemeanors recently. The move has been under scrutiny due to the rise in shoplifting.

Retail shrink on the rise
According to the National Retail Foundation (NRF), total retail shrink (refers to financial losses incurred due to staff theft, shoplifting, loss in transit, etc.) has increased over the past three years. It was $90.8 billion in 2020, which rose to $94.5 billion in 2021.

Target alone incurred a retail shrink of $763 million last fiscal year and is expected to surpass $1 billion in 2023. While theft alone isn’t responsible for shrink, the retailer suspects organized theft will contribute to $500 million in losses.

Organized retail crime is more prevalent in cities like Los Angeles, San Francisco, Washington, D.C. and New York.