More retailers hit by organized crime

By Phil Wahba Phil Wahba
NEW YORK (Reuters) – Sophisticated technology, less staff at stores and more gang activity are all contributing to more U.S. stores being hit by organized crime, according to a survey by an industry group.

Of 129 retailers, primarily national store chains, surveyed this spring by the National Retail Federation, 94.5 percent said they were victimized by organized criminals in the past year. And 84.8 percent said the problem has only worsened in the past three years.

The NRF said cutbacks of security employees, the desire for low prices by consumers and the ease of selling stolen goods online or at pawn shops all contributed to the problem. NRF members range from Macy's Inc to mom-and-pop shops.

"Shoppers are conditioned to look for a deal," a senior NRF advisor, Joe LaRocca, told Reuters.

LaRocca said consumers do not actively seek stolen goods, but the appetite for low prices has spurred demand.

"Thieves are looking for highly desirable, easily resold items," he said.

In contrast to shoplifting, organized crime involves people conspiring to steal merchandise, often between distribution centers and stores, and reselling rather than keeping items for their own use.

The survey found that targeted items range from jeans by Levi Strauss and Sony Play Station 3 Consoles to medication such as Advil and Benadryl.

Shoplifting and theft cost retailers 1.6 percent of sales, or $32 billion in 2009, the last year for which data is available, the NRF said.

That does not include the damage from hits on cargo, or merchandise that has not yet reached stores.

The NRF's annual survey included questions about cargo theft for the first time and found that just under half of retailers, 49.6 percent, had been struck by this kind of theft.

Criminals are also growing more violent when caught by store employees. Some 13 percent of in-store apprehensions lead to violence such as assault, the survey found.

The NRF's seventh annual survey was conducted between April 19 and May 10 and was answered by senior loss prevention executives.

With the struggling economy, LaRocca said demand for stolen goods could remain strong.

"The weak economy has pushed consumers to look for better prices. Organized retail crime groups capitalize on that desperation," he added.

How do Retailers Do it, anymore?

I remember, years ago, we did our shopping at Rikes and Elders in Dayton, and a few other stores. I think, all the Christmas gifts we bought were at the regular price. Everyone was excited, after Christmas, to shop the same stores and see what was on sale.

Today, everything is ON SALE before Christmas, just to get people in. It has to be a retailers headache.

Case in point. Kohls has a neck massager that I looked at. My neck and back felt better when I put my hand on the pillow and felt those finger-like undulations going round and round. I knew it would change my life, but I didn't even look at the price. Plug-in, variable controller, I knew it would be more than I wanted to spend.

I went on-line, found the company and the product, I was right, %65. I can rub my own neck for that.

I mentioned it to my wife, who does some "marketing" work at Kohls, she told me they had it ON SALE for $29. They had that entire line of products ON SALE, at what looked like about one-half off. Two weeks before Christmas.

What do they do after Christmas, go back to full price?

I remember the day when Christmas "made the year" for a store. If they had a good Christmas, they had a good year.

How can you have a good Christmas, if your leader items are half price or less.

I guess WalMart is right. Low prices all the time, some break-even prices, and sell it all, food, clothing, furniture, hardware, just sell it all. One stop shopping.

Southgate Men's Shop, as I recall, had one sale a year, and it was one heck of a sale, everyone knew when, and it was a gigantic success.

I remember too, I worked at Montgomery Wards, in Oregon. Everyone knew when, certain items would go on sale, and that's when they bought certain items. They knew that tires would go on sale at certain times, White Sale at a certain time, and that is when they bought those items.

Of course, there aren't many small retailers anymore, the big boys have seen to that. Even some of the big boys have gone out of business, at least those that offered "service."

WalMart should start building their new stores, multi floors, with condos on the upper floors. If you lived there, you would never have to leave. No car, no car insurance, just spend your retirement years at WalMart, we do that pretty much anyway.