Seemingly every retailer has talked about theft as a growing problem. You can blame some of the issue on lower staffing levels and automated check-out leading to an increase in both intentional and unintentional shoplifting.
Some retailers, including Walgreens, have tried stores where most items are behind security. That system can vary from the unwieldy locked shelves that you see in many big-city stores to more novel systems where customer essentially order from a kiosk and have their items brought to them.
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Walmart (WMT) -) recently took the extreme step of closing one Atlanta store with plans to reopen it with an on-site police station. That was a solution the retailer came to after talking with community leaders who did not want to see the city lose the retail giant, which has closed some locations in Chicago.
In theory, the mere presence of police officers should serve as a deterrent to criminals. That's a similar strategy to an idea CVS has been trying in New York. The company has not added a police station to any of its stores, but it has added a type of law enforcement.
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CVS adds security dogs
CVS executives have been talking about how online marketplaces increase in-store theft for the past few years. Essentially, they believe that digital retailers provide a market to sell stolen items.
The company's leaders have not commented on theft during their past two earnings calls, but the chain has faced the same issue as many of its rivals. That includes an uptick in shoplifting and organized retail crime. Those numbers have gone up across the industry, according to a National Retail Federation (NRF) report.
"This year’s study found that the average shrink rate in FY 2022 increased to 1.6%, up from 1.4% in FY 2021. When taken as a percentage of total retail sales in 2022, that shrink represents $112.1 billion in losses," the trade association shared.
To fight that, CVS, through a deal with The 34th Street Partnership, a New York City organization dedicated to promoting business, has added security dogs in front of one of its locations. The dogs aren't only protecting CVS, but also neighboring stores.
"Security guards with dogs are currently stationed outside the CVS on 34th and 8th, among other locations. While the dogs are obviously unable to detect shoplifting behavior, 34th Street Partnership Vice President Ken Ward said their presence outside stores intimidates would-be thieves," the Chelsea News reported.
The pilot program appears to be working as "known shoplifters" have walked by the CVS and not gone in, according to Ward.
Home Depot works with law enforcement
While some crime is what you would consider traditional shoplifting, many retailers have talked about an increase in "organized retail crime." ORC is the large-scale theft of retail merchandise with the intent to resell the items for financial gain," according to the NRF.
Home Depot (HD) -), worked with law enforcement in Florida to take down a crime ring that had targeted its stores. The criminals were arrested after an investigation by the Florida Organized Retail Crime Exchange taskforce, according to a press release from State Attorney General Ashley Moody.
"A Pinellas County pastor, Robert Dell, is facing charges for operating a multimillion-dollar theft ring stealing from The Home Depot. Authorities arrested Dell and four other associates for stealing merchandise worth more than $1.4 million from home improvement stores across multiple counties and then selling the items from an eBay account," her office shared.
Moody's office called the crimes a "years-long" effort that involved multiple Home Depot locations.
"This pastor clearly skipped over the commandment — thou shall not steal," she said. "We will not tolerate organized retail theft in Florida and my office will continue to combat these criminal organizations.'
Like Walmart and Home Depot, more retailers have been working directly with law enforcement to find local solutions to increased theft problems.
