Large Retailers Alarmed by Rise in Theft
Dick's Sporting Goods in Longmont, Colorado
Posted by: The Daily Outdoor Retailer / Aug 31, 2023
Photo Courtesy of The Daily
Major retailers, such as Dick's Sporting Goods and Nordstrom, are facing significant financial losses due to shoplifting and shrinkage. The issue has also affected other large companies, including Target, REI, and Cotopaxi, with stores in San Francisco and Portland experiencing increased crime and theft. Industry analyst Matt Powell provides insights into the problem.
Powell points out that while it appears that retail theft rates have risen, the pandemic's store closures in 2020 distort the comparisons. When comparing to 2019, the situation seems more typical. He also suggests that some news outlets may be exaggerating the issue, making it seem more widespread than it really is. However, organized retail theft appears to be increasing.
Notable incidents, such as a Nordstrom store robbery in California where masked shoplifters made off with over $300,000 in luxury goods, highlight the severity of the problem. Retail CEOs, like Erik Nordstrom and Brian Cornell, acknowledge that theft is affecting their earnings.
The attractiveness of outdoor apparel as a target for theft is growing as it becomes more mainstream, especially given the high price points associated with many items. High-value outerwear items are particularly appealing to thieves, who can resell them at a premium.
REI's decision to close a store in Portland and Cotopaxi's challenges in San Francisco are partly attributed to local crime and theft issues, but they also reflect broader challenges facing retail in those cities. Retailers are considering strategies like private security and uniformed guards to deter theft.
While guards can act as a deterrent, they may not completely solve the problem. Nonetheless, having a uniformed guard at the store's entrance, possibly off-duty police, can be an effective measure to reduce theft incidents.
REI in San Francisco, California
Photo courtesy of Getty