These are the products being targeted by organized crime
A recent MarketWatch article highlights how organized retail crime continues to present a severe challenge across the retail industry, affecting profitability and safety in stores nationwide. High-profile retailers like Target, Dick’s Sporting Goods, and Home Depot have all voiced concerns about the growing trend of retail theft during their recent earnings calls. This crime wave is not only impacting bottom lines but is also reshaping security strategies within the sector.
Carol Spieckerman, a prominent retail analyst and president of Spieckerman Retail, provides key insights into the nature of these crimes. Spieckerman describes retail theft as a "multi-category headache" with certain products being more susceptible to theft due to their size and value. Beauty products, for instance, are attractive targets because they are easy to conceal and have high resale value. Apparel, footwear, and accessories are similarly targeted due to their profitability and ease of resale, significantly impacting the revenues of stores that specialize in these categories.
Spieckerman also discusses the broader implications of retail crime on store operations and customer experience. She notes that while store associates are not equipped to handle these situations, the introduction of technologies and legislative measures like the INFORM Consumers Act are steps toward mitigating these crimes. This act, effective from June 27, aims to enhance transparency in online marketplaces and reduce the sale of stolen goods by requiring detailed verification of high-volume sellers.
Amidst this backdrop, retailers are making substantial investments in anti-theft technologies and collaborating with law enforcement to tackle the issue more effectively. The deployment of Lot Cop surveillance cameras by Dick’s Sporting Goods and other similar initiatives are examples of how retailers are responding to this growing threat.
Spieckerman emphasizes the need for a unified approach to address the demand side of stolen goods, highlighting that efforts to curb retail crime must not only be reactive but also preventive, focusing on cutting off the avenues through which stolen goods are sold. She predicts that starting this holiday season and into 2024, retailers will increasingly invest in technology to thwart theft, demonstrating a proactive approach to safeguarding their assets and ensuring a safe shopping environment for consumers.
