{"id":2016411,"date":"2023-08-30T06:19:02","date_gmt":"2023-08-30T10:19:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/retail-theft-delivers-an-economic-blow-for-companies-and-communities\/"},"modified":"2023-08-30T06:21:16","modified_gmt":"2023-08-30T10:21:16","slug":"retail-theft-delivers-an-economic-blow-for-companies-and-communities","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/retail-theft-delivers-an-economic-blow-for-companies-and-communities\/","title":{"rendered":"Retail theft hurts businesses and communities economically."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fretail-theft-delivers-an-economic-blow-for-companies-and-communities%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2016411&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Mayhem on Main Street: The Economic Impact of \u200bRetail Theft<\/h2>\n<p>A <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/small-businesses-helpless-over-spike-in-retail-thefts-say-they-feel-abandoned-by-lawmakers\/\" title=\"Small businesses feel abandoned by lawmakers amid surge in retail thefts.\">nationwide retail theft epidemic<\/a> has wreaked havoc on businesses across the United States, resulting in a staggering cost of \u200cnearly $100 billion in 2021. \u2063The consequences of this epidemic are far-reaching, with retailers being \u2063forced to raise \u200cprices or close their doors, \u2063insurers \u2063refusing\u2063 to provide assistance, and smaller\u200b mom \u2062and\u2062 pop stores being\u2063 left behind.\u200b In this series, the \u200cWashington Examiner\u200d delves into\u2063 the causes behind \u200cthe scourge of shoplifting,\u2064 the\u2062 involvement \u2063of cartels, the impact\u200c on stores big and small, \u2063and the complicity of lax prosecutors. In part three, we will focus on the economic implications of\u200c retail\u2063 theft. To\u2064 catch up on parts one and two, click here and here.<\/p>\n<h3>The Devastating Economic Consequences<\/h3>\n<p>Retail \u200dtheft has become\u2062 a pervasive issue that carries significant economic implications for\u2063 both retailers and \u2064the communities they serve.\u200c The\u2062 growing instances of theft\u2062 have resulted in nearly $100\u200c billion in losses for retailers in 2021 alone, highlighting the harsh reality of these crimes. Videos circulating on social media \u200cdepict \u2062brazen thieves, both individuals and organized\u200c groups, boldly entering stores, stealing merchandise, and making a \u200cswift getaway with little resistance. This phenomenon has\u200b intensified in recent \u200cyears, particularly \u2063following\u2062 the onset of the pandemic, causing significant harm to retailers and \u200cprompting urgent calls for\u2063 action from lawmakers \u2064and law enforcement.<\/p>\n<blockquote>\n<h3>Boosters, Fencers, and \u2063Cleaners: Inside \u200cCartels&#8217; Newest Criminal\u2062 Enterprise of Organized Retail \u200dTheft<\/h3>\n<\/blockquote>\n<p>The crime wave of retail\u200d theft has impacted retailers \u2064of all\u200c types, from everyday stores to luxury \u200cestablishments. While \u2062some \u2064may argue that individual thefts \u2062have\u200c minimal economic consequences, the cumulative numbers are staggering. The\u200c retail industry refers to\u2063 the loss of product inventory due to theft as &#8220;retail shrink.&#8221; According to a comprehensive study \u2063conducted by the National Retail \u2062Federation, the world&#8217;s largest retail\u200b trade association, retail shrink amounted to a staggering $94.5\u200d billion \u200cin \u2063losses \u200bin\u2064 2021.<\/p>\n<p>To put this into perspective, these losses are \u200dnearly \u200bequivalent\u2064 to\u200c the entire annual budget of the state\u2062 of Florida and \u200bsurpass the annual expenditures \u200dof some major countries. \u2063It is \u2063also comparable to the \u200btotal \u200drevenue generated by retail giant Target in 2022.<\/p>\n<p>Furthermore, the problem of retail theft has been on \u2062the rise in recent years. The nearly \u2064$100 billion in \u200dlosses suffered\u2062 by retailers in\u2062 2021 represents an\u2064 increase from an\u200d estimated\u200c $90.8 billion the previous year. Retailers surveyed as part of the study reported an average\u200d 26.5% increase in \u200dincidents of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cynthia-nixon-denounces-anti-shoplifting-laws-stealing-basic-necessities\/\" title=\"Cynthia Nixon Denounces Anti-Shoplifting Laws: \u2018Stealing Basic Necessities\u2019\">organized retail crime<\/a>\u200c in \u200b2021 compared \u2064to \u20642020.<\/p>\n<p>&#8220;It\u200c is growing. We&#8217;re witnessing\u200b numerous open and brazen acts\u200c of\u200c shoplifting. While shoplifting and\u2062 professional shoplifting are not new,\u200c in\u2063 the past, they \u200bwere often\u200d seen as invisible crimes,&#8221; said David\u2062 Johnston, the National \u200bRetail Federation&#8217;s vice president\u200d of asset protection and \u2063retail\u200c operations, in\u200d an interview \u2063with the Washington Examiner.<\/p>\n<p>Johnston emphasized \u200dthat retail theft occurs across the board, affecting products \u2064of all types and price points. The\u200b thefts range from opportunistic shoplifting \u2063to\u2064 smash-and-grab incidents to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/retail-theft-delivers-an-economic-blow-for-companies-and-communities\/\" title=\"Retail theft hurts businesses and communities economically.\">highly organized retail crime\u200b operations involving transnational gangs<\/a>.<\/p>\n<p>However, beyond the sheer\u200c numbers, the\u200b nature of\u2062 these crimes has \u200dbecome \u2064increasingly\u2062 aggressive, posing a significant concern\u2064 for businesses \u200dstriving to ensure the\u2064 safety of their customers and\u200d employees.<\/p>\n<p>According\u200d to \u200ba survey of retailers, 80% \u200creported an increase in violence and aggression associated with\u200b organized retail crime in\u200b 2021 compared to the previous year.\u200d This finding is supported by viral videos capturing brazen and aggressive thefts in recent years.<\/p>\n<p>&#8220;Now we&#8217;re starting to see \u2062these large, open, brazen \u200bacts of shoplifting, \u2062which\u200c are causing more violence\u200b and threatening the safety and security of the consumer as well as the employee,&#8221; \u2063Johnston explained.<\/p>\n<blockquote>\n<h3>Small Businesses Helpless \u2064Over\u2062 Spike in Retail Thefts, Say They\u2062 Feel Abandoned \u200dby Lawmakers<\/h3>\n<\/blockquote>\n<p>Retail theft \u2062not\u200b only affects major retailers but also has ripple\u200c effects on local communities, particularly\u200b those grappling with poverty. Some stores that are severely impacted by retail \u200dtheft have been forced \u200bto shut \u2064down, \u200cwhich \u2062can have\u2062 detrimental\u200c consequences. For example,\u2064 if a grocery store closes, it can contribute to\u2063 food insecurity in impoverished communities.<\/p>\n<p>&#8220;It absolutely does impact everyone,&#8221; Johnston emphasized, countering the notion that retail\u200c theft is a victimless crime.<\/p>\n<p>Moreover, \u2064retail theft can have\u2064 economic repercussions for \u2063neighborhoods. Stores may choose to alter their hours or reduce inventory, leading businesses to relocate outside the community and causing residents to travel elsewhere for their shopping needs.<\/p>\n<p>These thefts can also affect community\u2063 services. If\u2062 stores close down, a city may experience a \u2063decrease\u200d in tax revenue, \u200cresulting in \u2063reduced funding for\u2064 community\u2062 programs and assistance.<\/p>\n<p>&#8220;When stores close down and\u200b merchandise isn&#8217;t available for sale, \u2064it\u200b has \u200ba significant impact on community services,&#8221; Johnston stated.<\/p>\n<p>Johnston noted that the trend of \u2062increasing retail theft was already underway\u2063 before the COVID-19 pandemic.\u200d However,\u2063 as consumers became\u2064 more accustomed to online shopping during the pandemic,\u200c it provided thieves with a\u200c convenient\u200d avenue to steal and anonymously sell merchandise.<\/p>\n<p>One driving factor behind the rise in retail theft could be individuals stealing out of financial necessity\u200d or to fund drug addiction. \u200cThis has also created an opportunity for organized retail crime\u200c groups to\u200d recruit those facing such challenges as &#8220;boosters&#8221; who steal from stores on their behalf.<\/p>\n<p>Another contributing factor to the surge in retail\u2064 theft is the prosecution of these crimes. In some areas, law enforcement has deprioritized the enforcement of certain offenses in order to focus on more serious crimes,\u2062 potentially resulting in fewer consequences for shoplifting.<\/p>\n<p>&#8220;So, it&#8217;s kind of a perfect\u2064 storm,&#8221; Johnston \u2063explained. &#8220;It&#8217;s not just one thing that has led us\u2064 to\u2064 where we\u2063 are \u200btoday. It&#8217;s \u200da \u200bcombination of factors.&#8221;<\/p>\n<p>Congress\u200c has taken steps to address retail \u200ctheft \u2064by passing the bipartisan INFORM \u200bConsumers\u2064 Act, which went into\u200b effect in June.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\">Click here \u200cto read more\u2063 from the Washington\u200d Examiner<\/a><\/p>\n<p>The INFORM Act mandates that online\u200c marketplaces, such as eBay or Facebook\u200b Marketplace, verify and validate \u2064seller information for sellers who\u2062 reach a certain \u2062income and sales threshold within a specific period. Failure to\u2062 comply with this requirement can result in significant fines for online marketplaces. The aim is \u200dto prevent the\u200c sale of stolen goods on these\u200d platforms\u200c by collecting identifying \u2062information.<\/p>\n<p>&#8220;The goal of the\u200d INFORM Consumers Act is\u2062 to add more \u200dtransparency to online\u2062 transactions and deter criminals from acquiring stolen, counterfeit, or unsafe items and selling them through \u2064those marketplaces,&#8221;\u200d stated the Federal Trade Commission.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US faced a $100 billion loss in 2021 due to a widespread retail theft crisis. Stores are increasing prices or closing down, insurers are uncooperative, and small businesses suffer the most. The Washington Examiner&#8217;s series, Mayhem on Main Street, delves into the root causes of this alarming issue.<\/p>\n","protected":false},"author":1,"featured_media":2016412,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2016411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2016411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2016411"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2016411\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2016412"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2016411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2016411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2016411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}