Retailers will lose up to $80 billion to theft by 2022 – up from $13 billion in one year
- Research from the National Retail Forum shows that crime in the sector is ‘at unprecedented levels’
- According to respondents, violent shoplifting has increased by more than a third since 2021
- Data collected from 177 retail brands representing $1.6 trillion in annual sales
Retailers lost nearly $80 billion to shoplifters last year, up from nearly $13 billion, amid a frightening increase in violent thefts in Democratic-run cities.
The National Retail Federation said the sector is under threat from crime and violence, with shop owners fearing for their livelihoods and safety.
The annual trade survey collected data from 177 brands across the country, representing more than $1.6 trillion in annual sales.
The study found that shrink, the total losses incurred by retailers, increased by $20 billion in a year to an eye-watering $112.2 billion by 2022.
And with as much as 70 percent of shrinkage due to theft, that means retailers lost approximately $78.4 billion to shoplifters.
The NRF investigation found that thefts like the one pictured that occurred at a Nordstrom Rack store in Riverside, CA, cost the industry billions of dollars each year.
The shocking figure has also risen by almost a fifth from 2021, when it was around $65.7 billion.
The increase is attributed to the rising number of violent thefts. Overall, 88 percent of retailers say shoplifters will become more aggressive in 2022.
“Retail crime, violence and theft continue to impact the retail industry at unprecedented levels,” the report said.
‘The consequences of these criminal acts do not only apply to major national brands or major metropolises. Daily media reports show that no company is immune, and these issues impact retailers of all segments, sizes and locations in the United States.”
According to respondents who track such incidents, violent shoplifting has increased by more than a third since 2021.
Twenty people were arrested yesterday during mass looting in Democratic-led Philadelphia, including one woman who livestreamed the theft.
Footage showed the robbers arguing with police after storming Footlocker, Apple and Lululemon.
The NRF’s warning comes just a day after about two dozen people were arrested in Philadelphia following a night of widespread looting
The worrying increase in incidents has led some retailers to take drastic action. Last week, Target announced it would close nine stores in major cities due to rising theft.
Among the establishments that will close are locations in Democratic areas such as San Francisco, CA, Harlem NY, and Portland, OR, which have also been the center of shocking shoplifting incidents caught on film in recent months.
The move came months after CEO Brian Cornell revealed that shoplifters were costing the company up to $500 million a year.
Meanwhile, CVS will close 900 stores by the end of next year. The retailer is cutting 10 percent of its stores as it focuses on online strategy amid rampant rise in thefts.
According to the NRF, the top five locations most affected by organized retail crime in 2022 were all Democratic areas.
Los Angeles, CA was hit the hardest, followed by San Francisco and Oakland at number two, Houston, TX, New York City and Seattle, WA.
The report added: ‘While theft has an undeniable impact on retailers’ margins and profitability, retailers are very concerned about the increased levels of violence and the threat of violence associated with theft and crime.’
In addition to shoplifting, the NRF says retailers have also seen an increase in e-commerce fraud and phone scams to extract cash or gift cards.
It also said “significant minorities” reported an increase in “delivery fraud”; stolen goods sold on third party sites; return fraud; and loyalty fraud and abuse’.
The research also found that 72 percent of retailers reported an increase in the value of thefts in areas where the crime threshold has been raised.