Organized retail crime has once again cast a shadow over retail earnings season, with companies such as Target Corp., Dick\u2019s Sporting Goods Inc. and Home Depot Inc. all highlighting the problem of retail theft.\u00a0<\/p>\n
Perhaps unwilling to draw attention to at-risk products, retailers have provided few details of items targeted during their recent earnings calls. However, Lowe\u2019s Cos. Carol Spieckerman, president of retail advisory firm Spieckerman Retail, described theft as a \u201cmulti-category headache\u201d for retailers, but told MarketWatch that some categories are particularly vulnerable. \u201cBeauty products are tempting targets due to their small form factor and premium prices,\u201d she explained, via email. \u201cIt\u2019s much easier to load up on these items and resell them in higher volumes. Unfortunately, beauty is also a high-margin category that many retailers are determined to expand.\u201d<\/p>\n Related: <\/strong>Dick\u2019s Sporting Goods CEO highlights impact of organized retail crime: \u2018It\u2019s quite alarming what\u2019s going on\u2019<\/p>\n Spieckerman noted that Target Apparel, footwear and accessories are often pursued by individuals and crime rings, according to the retail expert. \u201cHere again, these categories are retail profit-builders that are also fairly easy to grab and resell,\u201d she told MarketWatch. \u201cFor retailers like Dick\u2019s, Target and Nordstrom that specialize in these categories and count on them to drive profitability, retail crime is a shocking everyday reality.\u201d<\/p>\n Store associates can\u2019t be expected to police these situations and retailers don\u2019t want to encourage that, as some incidents turn violent, Spieckerman told MarketWatch. \u201cAdditionally, local police forces don\u2019t always have the bandwidth to take on retail crime, particularly in smaller communities,\u201d she added.<\/p>\n Related:<\/strong> Here\u2019s the technology Lowe\u2019s plans to deploy to combat power-tool theft<\/p>\n Last week, Ann-Marie Campbell, Home Depot\u2019s The INFORM Consumers Act, which came into effect June 27, is\u00a0designed\u00a0to add more transparency to online transactions and deter criminals from acquiring stolen, counterfeit or unsafe items and selling them through online marketplaces.\u00a0The Act\u00a0requires\u00a0e-commerce sites to verify and disclose information about their high-volume third-party sellers.<\/p>\n \u201cThe recently passed INFORM Consumers Act promises to unify and standardize the fragmented elements that make retail crime such a tough nut to crack,\u201d Spieckerman told MarketWatch. \u201cMost importantly, it targets the demand side of the equation rather than relying on reactive, post-incident strategies.\u201d<\/p>\n Related:<\/strong> Target facing \u2018unacceptable amount\u2019 of retail theft and organized retail crime, CEO says<\/p>\n \u201cTightening the reins on the online marketplaces where most stolen goods are fenced is the focus for the act, so it\u2019s not a quick fix,\u201d Spieckerman said, noting that it will take time for the act\u2019s impact to be realized. \u201cStill, it\u2019s a step in the right direction. Starting this holiday season and going into 2024, I expect retailers to make major investments in theft-thwarting technology as an augmentation strategy.\u201d<\/p>\n Speaking during a conference call to discuss the company\u2019s second-quarter results this week, Dick\u2019s Sporting Goods Earlier this month, Target CEO Brian Cornell said that the company is facing an \u201cunacceptable amount\u201d of retail theft and organized retail crime. \u201cTheft and organized retail crime are urgent issues that are increasingly\u00a0impacting the team and guests at Target and other retailers,\u201d a Target spokesperson told MarketWatch on Wednesday. \u201cThe problem affects all of us, limiting product availability, creating a less convenient shopping experience and putting our team and guests in harm\u2019s way.\u201d<\/p>\n Related:<\/strong> Walmart\u2019s \u2018shrink\u2019 challenges differ from those of other retail giants, CEO says<\/p>\n \u201cWe are working with legislators, law enforcement and retail industry partners to advocate for public policy solutions to combat theft and organized retail crime,\u201d\u00a0the spokesperson added.<\/p>\n A spokesperson for the Retail Industry Leaders Association told MarketWatch that organized retail crime is a massive problem and the industry is working on it at local, state and federal levels. \u201cRetailers are spending billions of dollars on theft deterrent technology, deploying more security guards, closing stores in high-crime areas and partnering with state AGs, Homeland Security and local prosecutors to address theft,\u201d they said. <\/p>\n Additionally, more than a dozen state attorneys general have launched organized retail-crime task forces to coordinate investigations between retailers and prosecutors. There are also more than 40 Organized Retailer Crime Associations across the U.S. These associations assist law enforcement, retail investigators and prosecutors with the identification, investigation and prosecution of those involved in organized retail crime.<\/p>\n
\n LOW,
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\n did discuss its use of technology to combat power-tool theft.<\/p>\n
\n TGT,
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\n has been quite candid about the impact crime is having on its bottom line, even as the retail giant touts its partnership with Ulta Beauty Inc.
\n ULTA,
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\n as a major growth vehicle.<\/p>\n
\n HD,
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\n executive vice president of U.S. stores and international operations,\u00a0said she is hopeful that the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act will aid efforts to tackle organized retail crime.<\/p>\n
\n DKS,
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\n CEO Lauren Hobart said that the retailer has deployed Lot Cop surveillance cameras in its fight against organized retail crime.<\/p>\n