Hundreds of retailers are shutting down across the country in what some experts are dubbing the "retail apocalypse," and a large number of the closures are tied to an uptick in retail crime.
This month, Target announced it would be closing nine stores due to skyrocketing shoplifting levels. Walmart has also dealt with similar concerns at its locations, shuttering four in Chicago and warning that price increases could be on the way as inventory disappears.
Across the sector, retail crime is having a significant impact on companies' bottom lines. In 2022, inventory shrink contributed to $112.1 billion in losses, up from $93.9 billion in 2021, the latest National Retail Security Survey found.
"Retailers are seeing unprecedented levels of theft coupled with rampant crime in their stores, and the situation is only becoming more dire," National Retail Federation Vice President for Asset Protection and Retail Operations David Johnston said in a statement.
The problem is not actually American in nature, however. In a letter penned by the British Retail Consortium, company leaders from some of the nation's top 88 stores called on U.K. Home Secretary Suella Braverman to take action on the rising retail theft taking place across their country.
The company leaders said store employees face "unacceptable levels of violence and abuse," as many store visitors participate in organized crime or even violence toward the workers themselves. As part of the letter, leaders asked for a new statutory offense, making it a specific crime to assault, threaten or abuse a retail worker.
If enacted, company officials say it would send a "clear message" from Parliament that retail crime is not tolerated while boosting safety for their workers.
"This standalone offence would send an important signal that our colleagues will receive better protection in law and act as a deterrent to would-be offenders," the letter reads. "This action should be taken without delay."
The companies also asked for police to record every incident of retail crime and devote more resources to the growing crime problem.
"We are seeing organized gangs threatening staff with weapons and emptying stores," BRC chief executive Helen Dickinson said in a statement. "We are seeing a torrent of abuse aimed at hardworking shop staff. It's simply unacceptable – no one should have to go to work fearing for their safety."
Mirroring American levels of rising crime, rates of violence and abuse toward retail employees in the United Kingdom have nearly doubled pre-pandemic levels. In 2022, workers dealt with 867 incidents every day, according to the BRC 2023 Crime Survey.
In the United States, many retailers have pushed for legislation like the Combating Organized Retail Crime Act. The bill works to create an Organized Retail Crime Coordination Center which would support sharing retail crime information across states and to the federal government.
Target and Walmart Losing Stores
Due to the rise in crime, many big-name retailers have been forced to shut down key locations over concerns about employee safety and inventory losses.
Target will shutter its Harlem location in New York City at the end of this month, citing safety concerns.
"We cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance," Target said in a statement.
The Harlem neighborhood near the shopping center experienced a 40 percent increase in shoplifting complaints since 2020, according to police reports. Other affected shops include locations in Seattle, San Francisco and Portland.
Walmart, meanwhile, closed four stores in Chicago after its CEO said high crime ran the risk of shuttering stores due to inventory shrink.
"If that's not corrected over time, prices will be higher, and/or stores will close," Walmart CEO Doug McMillon said in a CNBC interview last year about the crime surge.
PYMNTS reported in May that Walmart had closed 21 stores across 12 states amid ongoing concerns over retail crime.
The pattern of retail theft is affecting stores in higher price ranges as well.
In August, a mob of at least 30 people grabbed scores of merchandise at a Yves Saint Laurent store in Glendale, California, before fleeing in the middle of the day. The stolen inventory was estimated to be worth $300,000.
As inflation remains high, many Americans have been unable to afford basic necessities, coinciding with the uptick in crime at grocery stores.
According to a recent Gallup poll, 61 percent of Americans surveyed suffered financial hardship due to price increases. Low-income households felt the greatest impacts compared to their wealthier peers.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Suzanne Blake is a Newsweek reporter based in New York. Her focus is reporting on consumer and social trends, spanning ... Read more
