Why Retailers Are Spending Billions On Anti-Theft Technology

According to the National Retail Federation, retail shrink reached $94.5 billion in 2021, as compared to $90.8 billion in 2020. Shrink refers to inventory losses due to theft, unknown loss and administrative error. Retailers have characterized retail crime as an "epidemic," and the issue has prompted some of the nation's biggest companies, like Target, Home Depot and CVS, to invest billions in loss prevention and asset protection, including corporate investigators and security professionals. On the other side of the table, criminologists and criminal justice advocates worry that the story is not as straightforward as retailers and their advocacy groups are suggesting. Looking deeper, critics point out that not only is shrink difficult to track accurately, the methodology used in data gathering as it relates to retail theft is inconsistent.

Chapters:
0:00 — Introduction
02:19 — Retail crime on the rise
07:02 — The data debate
15:28 — Legislation and law enforcement

Produced by: Jade Tungul
Senior Managing Producer: Tala Hadavi
Editorial Support by: Gabrielle Fonrouge
Graphics: Jason Reginato, Jade Tungul
Additional sources: Retail Industry Leaders of America, National Retail Federation, U.S. Department of Homeland Security, Home Depot, Lowe’s

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Why Retailers Are Spending Billions On Anti-Theft Technology

[InvestingBookSummaries]

So obnoxious to buy things that get locked. Then I have to find an employee to open it. That employee never has the key and needs to find the other employee that holds the keys.

[jewymchoser]

My heart goes out to all the mom and pop shops trying to make payroll

[Liz-wzdh]

I went to Walmart the other day and all the pregnancy tests and condoms were locked up. I was just amazed. The theft must be so bad for them to do that. But at the same time, those are exactly the items I doubt anyone wants to have to ask an employee to help them get so I bet more customers will be going online.

[ProgressiveSolutions]

One thing not discussed – or even mentioned – is the fact that large retailers generally have far fewer employees on the sales floor, leaving more opportunities for theft wide open.

[matayahill]

As someone who worked retail…this I also a problem they created. They never took it seriously when reported that people were stealing I was even told by a loss prevention individual that they looked at the employees more than they looked at the actual customers. Now all of a sudden they want to change behavior. You can’t change behavior after many years of never taking it seriously, of course people are going to get used to the fact that they can steal when they’ve done it in the past and they know that we as employees can’t do anything about it!

[tenshi.kurama]

I would not be surprised if stores started operating like vending machines, you can't even hold the product until you pay for it and then get issued the refund if you decide you don't want it

[bassplooker]

As someone who has worked for multiple retailers for the last 30 years I see things now that i couldn't have imagined happening when I started. The thieves know there will be no consequences for their actions. Staples and Lowes for example, will fire you for even appearing to do something as you could get hurt and sue. They tell us it's for our safety but they wont let you call the cops either as it would "look bad for customers" and they don't want the lawsuits. The retailers must bear some of the blame for where this is going.

[b]

I live in Seattle. I work in property maintenance. Seeing someone walk out of a big box store with as much laundry detergent or batteries as they can carry is a daily occurrence.

[Berkana]

The problem isn't just numerical losses; the problem is the atmosphere of lawlessness that retail theft creates when it goes unchecked. If you don't stop it, it grows and spreads as criminals feel rewarded for their efforts and become emboldened to steal more.

[masterpm]

Most shop owners won't (and sometimes can't) file a police report unless the offender steals a certain amount of merchandise. Therefore, most thefts don't get added to crime statistics

[cashflow]

I want to a store the other day where you had to get something out of a locked plexiglass. The clerk took it out about 5 items and handed to the customer and the guy ran out the door with it. What a great idea. No one in store will stop the thief because of liability issues.

[cameron]

The BIGGEST issue for me is when they lock up contraceptive items (e.g., condoms, lube, etc.). I do not want to bother the grossly UNDERPAID employees so that they can come and unlock said items. Meanwhile other customers are looking at me as a creep just standing next to the condoms while I wait for someone to find the other person who has the right key. Nope - I'll just go to another store to find said items. Lastly, on the topic of underpaid employees, it amazes me on how much these companies will invest millions into anti - theft technology, but paying your employees an extra dollar or two is "Doing too much"... oh ok

[locsoluv]

One thing that makes the locked up products even more frustrating is that retailors seem to keep their stores understaffed. So it takes longer for an employee to come unlock the box. And it's not like the existing underpaid employees are actually going to stop someone from walking out with the product.

[macmiller]

As someone who works in LP I do believe the numbers on theft increasing are accurate. It’s true that Shrink comes from more than just theft but we account for that also. When the woman asked if maybe employees dropped 10 more jars of pickles than they did last year, we have a damage and destroy log where things like that are logged and tracked. We track all kinds of shrink including theft.

[amharbinger]

As someone who worked in retail for about 7 years my issue is that they can afford all of these upgraded security measures and implement within the last year to all their stores but when employees ask for a living wage or health insurance they don't have the money?

[mlong]

The problem is they are just recording the theft not stopping it. Recording is going to do nothing unless you arrest those stealing your merchandise.

[royperry]

I work at a major auto parts store in California. Shoplifting of minor items is a perfect crime we can do is keep an eye on our customers at all times if they still we can't call the police because it's considered a minor crime up. It's just not worth chasing people out the door when they steal something from us. It's much easier for retailers to control internal shrink which is half of what the shriek of figures are.

[megaascension]

I had an experience where I had to spend nearly an hour at a large retailer to get ONE ITEM. Yes, one item. I needed a new computer charger because I went to my grandma's house for the weekend in college and accidentally left my computer charger there. I got to the store, couldn't find a charger, asked where they were, and was told that they were locked behind the counter. Only one employee had the key, and they had gone on a meal break five minutes earlier, and wouldn't be back for 25 minutes. So I waited for 25 minutes, and they got me the charger. I then went to check out, and there were no manned registers open, and both the self-checkout lines had fifteen people waiting. One line was from the food area to the makeup, and the other was from the makeup to the food area. I waited for nearly half an hour to check out.

I didn't go to that retailer for nearly a year afterwards.

[RICHMBV]

Retail theft is completely out of control. I once worked at a drugstore and we constantly would be stopping people who were "loading up". The sad thing is really nobody does hardly anything about this problem, and it's only going to get much worse.

[luciboras]

I work in retail stores. Corporations are using thefts as one of the excuse to raise prices causing inflation for more profits and ways to get consumers and government to pay for their cost. Corporations are wanting something from consumers and ways to invade consumers privacy. I worked at Jo-Ann, a white man walked up with Jo-Ann bag, packed the items and walked out the store, the managers, tell employees not to report to police. There are items misplaced in the stores, damages, and items not sold were donated. Some retailers, threw away some products. Corporate retails are to make profit, why some retail stores brand sell their product at 75% and 90% off? How are businesses able to stay in business when products at such low discount? What is it that they are not disclosing to consumers and government agencies? What are they hiding and what they are reporting to the news actually true? What gain benefits is the corporates men intending on and want from consumers and government ? Could it be another bailout, outsourcing, reducing employees pension benefits, ways for more profits, and ...