Title: Surge in Organized Retail Crime Sparks Concerns as Toys ‘R’ Us Prepares for Nationwide Reopening
Date: [Insert Date]
As the iconic children’s store Toys ‘R’ Us prepares for its long-awaited reopening across the United States, concerns are rising over the surge in organized retail crime in large cities. Gerald Storch, CEO of Storch Advisors and former CEO of Toys ‘R’ Us, recently shared his insights on the matter.
According to a recent national survey conducted by the National Retail Federation (NRF), organized retail crime is on the rise in major cities across the country. The NRF’s 2023 report revealed that participating retailers reported inventory losses, commonly referred to as “shrink,” exceeding $112 billion.
Organized retail crime typically involves coordinated robberies planned through social media, targeting various businesses. One common tactic employed by these criminals is the smash and grab, where thieves swiftly enter and leave a business with stolen merchandise.
The NRF’s report compiled data from 177 retail companies, representing a collective $1.6 trillion in retail sales for 2022 across 97,000 retail locations. Compared to 2021, the average shrink rate for the fiscal year 2022 increased to 1.6% from 1.4%.
During a press conference on Capitol Hill, NRF CEO Matt Shay emphasized that organized retail theft affects businesses of all sizes, including main street merchants in small towns. Shay also expressed concern about the tragic loss of life, violence, and aggression that often accompanies these incidents.
Large cities such as Los Angeles, Oakland, Houston, Seattle, New York, Denver, and a tie between Sacramento and Chicago are among the primary targets for organized retail theft, with Los Angeles topping the list for the fifth consecutive year.
Despite retailers’ efforts to enhance safety measures, secure their premises, and train staff to handle such situations, additional support is needed. Consequently, Shay joined Senators Chuck Grassley (R-Iowa) and Catherine Cortez Masto (D-Nev.) in advocating for the Combating Organized Retail Crime Act, which aims to combine law enforcement agencies to combat retail crime.
Senator Grassley highlighted that organized retail theft poses a $1 billion problem in Iowa alone, emphasizing the impact on employees, consumers, and individual retailers.
The NRF has been proactive in addressing the issue, having successfully advocated for the passage of the INFORM Consumers Act last year. This legislation, now law, mandates online marketplaces to verify the identities of high-volume third-party sellers.
As retailers brace themselves for the reopening of Toys ‘R’ Us, the overarching concern over organized retail crime underscores the need for comprehensive measures aimed at curbing these criminal activities. With the combined efforts of the government, law enforcement agencies, and retail associations, hopes are high for a safer and more secure retail environment in the future.
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[Insert Image Caption: Bystanders recorded video of a smash-and-grab incident. (@queen.v009 / LOCAL NEWS X /TMX)]
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