Chains are using theft to mask other issues, report says

cnn.com ^ | October 27, 2023 | Nathaniel Meyersohn,

[ransomnote]

Retailers say theft is exploding, and some data from retailers along with numerous videos of violent store robberies and looting seem to support the claim.

But some retail analysts and researchers, bolstered by local crime statistics, say stores may be over-stating the extent and impact of theft. Why? It’s a useful deflection, camouflaging weak demand, mismanagement and other issues denting business right now. And it forces lawmakers to respond.

Across the country, the “actual increase in rates of theft” at stores does not “correspond to the increase in company commentary and actions” on theft, according to a new report by retail analysts at William Blair.

SNIP

But a host of other issues, from inflation to rising costs, are impacting retailers, too. Theft is just one of many structural issues chains are facing, most notably the shift to online shopping and over-expansion of brick-and-mortar retail.

“Companies are also likely using the opportunity to draw attention away” from lower profit margins due to higher promotions and poor inventory planning in recent quarters, William Blair retail analysts Dylan Carden and Phillip Blee said in a report this week. Many retailers misjudged how much merchandise they needed to carry and now have a glut.

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Alex Vitale, a professor of sociology at Brooklyn College who studies policing, said business leaders had turned retail theft into a “moral panic” to mobilize a stronger police and criminal justice response.

“It shows us the way certain crimes in certain moments get mobilized far beyond their impact to play into a set of political and social debates,” he said.

[Drago]

Probably because if an employee gets hurt stopping the shoplifter the employer gets hit with a big injury/liability lawsuit. Store insurance company says “let ‘em walk or we don’t renew your policy”.

Standard store policy around here nowadays...stores let them walk if they don’t stop after verbal commands and call the PD...fortunately our city PD has like a 5 minute or less response time and most get caught, but then the CA law cuts them loose with a “citation”/ticket for anything under $900.. Rinse & repeat over & over.