Thefts by organised gangs on the rise: US retailers
New York
ORGANISED crime rings are increasingly targeting US retailers, leading to thefts of everything from gift cards and mobile phones to teeth-whitening strips.
In a survey released by the National Retail Federation on Tuesday, 97 per cent of retailers said they'd been the victim of organised crime in the past year, the highest since the survey began in 2004. About 85 per cent of those companies said the problem has gotten worse in the past year.
"Criminal enterprises have found this is a very profitable way to conduct business - if you take a high-end handbag, get your hands on dozens of those and sell them for US$500 on the Internet, that's instant cash," Bob Moraca, vice-president for loss prevention at the NRF, said in an interview. "These are professionals, they work through organisations or gangs, and they can steal thousands of dollars worth of merchandise in minutes."
Criminals also are returning stolen goods for store credit, which they sell for profit, according to 67 per cent of retailers surveyed. Most of the stolen credit is resold on websites and at pawn shops. For 38 per cent of retailers, the theft happens before products even reach stores, the NRF said. Last year, only 35 per cent of retailers polled had experienced cargo theft.
On average, retailers report losing US$453,940 per US$1 billion in annual sales over the past year, according to the survey. Los Angeles tops the list of cities with the most organised retail crime, followed by Miami and Chicago.
The study follows remarks last month by Wal-Mart Stores Inc, which said it was coping with mounting "shrinkage", an industry term for inventory lost from product theft and waste.
Wal-Mart chief financial officer Charles Holley said he expects the problem to persist, and the company is restarting a programme to teach employees how to spot thieves, whether they're customers or colleagues.
Meanwhile, Wal-Mart also is auditing its supply chain and adding staff to parts of stores from which items tend to vanish. Many stores now station an employee at the exit to check customers' receipts.
Wal-Mart isn't alone in trying to combat the issue. Overall, 47 per cent of retailers surveyed said they are allocating additional resources to loss prevention, with about 32 per cent of retailers adding staff, up from about 23 per cent last year, the Washington-based NRF said. Companies allocate an average of about US$434,032 to personnel to help them reduce organised retail crime.
The NRF is working with legislatures to bring attention to the issue and encourage law enforcement to help bust these organisations. So far, most security measures retailers have implemented have been ineffective without the support of law enforcement, Mr Moraca said.
"These are sophisticated criminals," he said. "We thought we had things going in the right direction, but every time we come out with a security measure, they come up with a way to beat it." BLOOMBERG
