The Bunker Blog

Seems like there is no shortage of stories about the rising rate of shoplifting and internal theft today.  Most of these news stories either directly or indirectly blame the rise on the recession.

There is also no shortage of new incidents like this one in Mississippi, where several employees at a local retailer were involved in a fraud scheme where the were paying either very little or nothing for merchandise from the store.

At the same time, retailers across the country are trimming down their loss prevention departments. Payroll budgets are getting slashed, and many jobs have been lost in efforts to cut costs and increase profitability.

With less bodies in the stores serving customers; less LP agents on the floor protecting the merchandise; and with retail crime already on the rise; things sure don’t look good for retailers’ shrink lines this year.

I still say this economic recession is an excuse when it comes to theft. However, employees whose schedules have been cut, who see that their company is cutting costs, starting with payroll; may be tempted to subsidize by stealing from their company.

Folks recently unemployed may take to stealing as a “means to survive”, at least  that is how they would justify it.

The fact is, this whole situation looks like the “perfect storm” when it comes to increased shrink. Sales are down, theft is up; there are less people protecting the stores, and more people stealing from them.

There are a lot of displaced LP agents out there who have recently been unemployed themselves. The jobs that do become available will be tough to get because there will be many more applicants than normal. This gives retailers the opportunity to stack the deck with their retail LP teams.

I have a feeling that some of us (retailers) are going to have that “punched in the gut” feeling when we see the numbers this year. It’s bad enough to see sales going down. Add increased shrink to that scenario, and well, you know what I mean.

We have to be prepared for, and expect the worst. At the same time, we have to continue to meet each new challenge with a renewed determination to hold the line. We may not make many huge gains in the war on shrink this year, but we can at least win a few battles, and make sure the enemy takes some casualties, as we hold the line on retail shrink for 09.

Good luck to us all. As always, feel free to comment. Discussion is welcome and encouraged.

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Fayetteville, NC has seen a significant increase in shoplifting incidents over last year, according to local police and the Fayetteville Observer.

According to data provided by police, there was a 46 percent increase in shoplifting at the city’s three Wal-Mart stores and a 74 percent increase at Cross Creek Mall. The data represent the number of shoplifting incidents reported Jan. 1 to Aug. 20 compared with the same period in 2007.

That is a huge jump. What is not clear from this story is the number of shoplifting incidents reported. For example, does that 46% represent 146 cases versus 100 last year? or does it represent something more like 4 more cases than last year? It must be pretty significant, though, because police case clearance rates on shoplifting incidents has slipped from 96% in 2007 to 85% this year. This is still not bad at all, but it does seem to indicate that the workload has increased significantly.

At any rate, Fayetteville is not alone, it would seem. Everyday I read more stories about increasing shoplifting incidents reported.  This so-called “victimless” crime is clogging up the courts, and costing retailers, and their customers, literally billions. And it’s getting worse…

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The stats are in, and crime is on the rise in Charlotte, NC. Specifically, shoplifting is up 21.4% over last year at this time. Interestingly enough, commercial burglaries are down 23.3% while residential burglaries are up 15.5%. You can download and view the latest report here

Is it the economy? Is it the rising price of Gas? Probably.  Still, in most cases, it’s not like people are stealing food to survive, or gas so they can travel to their jobs. No, they’re stealing non-essentials for the most part, at least that has been my recent experience.

I’m afraid that, if we blame the economy, we’re just giving the thieves the excuse they need to steal more. If we “feel sorry” for the thief who steals $150 shoes because times are tough, then we empower them to steal more because they feel entitled to our merchandise.

I only post these stats to state a point: Some people will steal no matter what, while others will steal if they are persuaded. Then there are those who steal because they get in a bind and, instead of taking the necessary steps to reduce their non-essential spending like the rest of us have had to do, they resort to theft to maintain their lifestyle.

In addition, there are Organized Shoplifting Rings out there who are taking advantage of the economic paranoia. They are stealing merchandise, essentially getting all their wares for free. Then, they sell it for aobut half the retail price at flea markets, on eBay, etc., thereby making a pretty good profit since they essentially have no overhead costs.

Theft is wrong, and unless you have starving children, and are physically unable to work and can’t get any public or charitable assistance, and you go out and steal a meal for you and your kids, you just can’t justify it. And we all know that there are far too many assistance programs available today for that to happen.

The simple fact is that theft stems from greed, not need. No matter what you try to blame for the increase in shoplifting, the fact remains that those who steal are to blame, and are responsible for their own actions.

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