Shoplifting on the Rise in Recession
A lot of people are looking forward to filling shopping bags with new merchandise this holiday season. Unfortunately for the stores, they’re not looking to pay for any of it.
This is according to Joseph LaRocca, senior adviser on asset protection of the National Retail Federation (NRF). Retailers lost $36.3 billion to theft in 2008, up from $34.8 billion in 2007. With so many more people out of work in 2009, signals point to many more sticky fingers pilfering goodies from shopping outlets nationwide.
LaRocca attributes much of the projected loss from theft to the rise in professional shoplifting gangs that steal high volumes of merchandise for resale through various channels. They are especially fond of smaller items with high resale values like disposable razor blades. “They’re very organized, and they’re very skilled,” says LaRocca. “They’ll steal thousands of dollars in five minutes.” They may even open entire stores stocked with stolen products”.
In additional to being more prevalent, shoplifters are getting bolder. Criminals are taking bigger risks to score, like the rocket scientist who tried to steal a pet ferrett by shoving it down his pants.
During the last recession (a la 1992) stores were able to keep the clamps on shoplifting by keeping staffing levels high and employing new store layouts and anti-theft measures. This time around, retail stores aren’t keeping as many watchful eyes on the showroom floors as retailers have been shedding jobs like most areas of the economy.
And since the last recession, the crooks have been able to devise anti-security countermeasures to keep their criminal funds flowing. Which led to the stores putting in their own newfangled innovations. The question is whether or not stores will continue to invest in this arms race when sales are slumping.
So whether it’s the threat from pros or ordinary Americans looking to make ends meet, stores are more vulnerable than ever.
In related news, more Americans are still finding themselves out of work every month, although the pace of job losses does seem to be slowing a bit. According to the ADP employment report, employer payrolls declined 203,000 last month compared to a decline of 227,000 in September. Hopefully most won’t turn to a life of (even petty) crime.
The Congress is working on an extension of unemployment benefits, but according to the Huffington Post’s Ryan Grim, Senate Republicans are gumming up the works despite having the House of Representatives move to prolong benefits in a landslide vote.



