Americans can’t seem to catch a break. Despite an overall decline, crime in the United States is still much higher than in the pre-pandemic era.
Businesses know this first-hand. US retailers saw rising shrinkage even before the pandemic hit, and many continue to struggle–especially in major cities.
Is 2023 set to break the pattern of growing losses?
How Bad is Theft in the United States?
The latest studies on US crime in 2022 have come in, and the news isn’t good.
In its January 2023 report, the Council on Criminal Justice found that US robberies rose 5% year-over-year in 2022.
The stat gets even more sobering regarding a particular form of theft: The CCJ found that nonresidential burglaries soared by 11% from 2021 to 2022. It’s not a surprise given that some city authorities, including those in Los Angeles and San Francisco, have chosen to reduce penalties for or not prosecute thefts under certain thresholds.
This leaves the burden of enforcement on the retailers themselves. Fearful of violent confrontation, most staff often let thieves walk out with stolen products.
How Much Have US Retailers Lost to Shrinkage?
A lot.
The National Retail Federation’s latest survey found that retailers lost almost $95 billion, up by $4 billion over the previous year. The US Chamber of Commerce found a majority of small businesses reported crime has gotten worse in their stores.
Deloitte, a major tax service provider, reported in a recent study that US retailers suffered especially hard during the most recent holiday season. “Some retailers have noted [organized retail theft] has worsened during the 2022 holiday season and has gotten so dire that costs to cover lost products and security may require closing doors or raising prices.”
Crime Has Driven Out Some Retailers
This comes as major retailers have withdrawn from major cities. Walmart, the United States’ largest big box retailer, closed stores in Chicago and Portland this year–both cities noted for rising crime in the past several years.
Such a trend has long-term implications for customers. As Walmart CEO Doug McMillon said in a recent interview, “If that’s not corrected over time, prices will be higher, and/or stores will close.”
What’s in Store for 2023?
Unfortunately, this year looks challenging for US retailers as the economy slows and companies lay off employees.
With economic hurdles comes the increased likelihood of theft.
As Deloitte reported in its study:
“As many experts anticipate an economic slowdown in 2023, it would not be surprising to see an even further increase in organized theft. Citing the 2008–2009 downturn, experts noted that retail theft sees an uptick in times of economic stress.”
How Can Retailers Overcome the Challenges?
Many retailers have resorted to the unpleasant measure of locking merchandise behind glass enclosures. This measure preserves security, but at the expense of customer service. Customers often have difficulty finding an associate, made worse when trying to find the right associate with the right key.
As a result, many consumers have opted to ignore brick-and-mortar stores and buy merchandise online. In essence, traditional retailers lose either by theft or by lost customers.
Luckily, leaps in electronic access control have made cabinet- and display-level protection more seamless in store design while adding productivity. RFID systems like Senseon are concealed within fixtures, allowing staff to access secured merchandise with the tap of a card and managers to add/delete/modify an associate’s level of access on the fly.
Variants of these systems, such as Senseon Core, can even connect cabinet-level protection with a broader security network.
Retailers must find ways to enhance their security without compromising productivity and customer service. Given the trend of in-store crime, they may have no choice if they want to survive in an ever-challenging climate.
Are you a retail manager or business owner interested in learning more about access control? Speak with a Senseon expert and learn how to apply seamless protection to your store!
