Record $112.1B Lost: US Retailers Grapple with Soaring Theft Rates
US retailers are facing an alarming epidemic of theft, resulting in record losses of $112.1 billion in 2022, according to the National Retail Federation‘s annual Retail Security Survey. The survey revealed that external theft, along with theft by employees, were the primary factors contributing to this massive shrinkage, accounting for approximately two-thirds of the total losses.
The current situation is extremely concerning, with retailers struggling to keep their shelves stocked as stores are being emptied out faster than they can replenish them. Some establishments have even been forced to shut down permanently due to the persistent looting. These staggering figures have shattered the previous record set in 2021, which stood at $94 billion. Given the relentless news cycle regarding theft, it is highly likely that this record will be broken yet again.
The scale of theft is particularly pronounced in states and cities with lenient justice reform laws. One recent example of brazen looting occurred in Philadelphia, where looters wreaked havoc and made off with anything they could get their hands on. While Los Angeles has implemented a new retail theft task force in an attempt to curb this trend, it barely scratches the surface of the problem. Retail giant Target, for instance, has been compelled to shutter nine stores on the West Coast due to rampant theft.
Target’s plight is just one among many, which also include Walgreens, CVS, and numerous other retailers who find themselves trapped in an unsustainable situation. These businesses face no legal obligation to remain operational if they cannot maintain profitability. When they are repeatedly robbed, their profits vanish. Insurance companies respond by either refusing coverage or raising premiums to exorbitant levels. Ultimately, closure becomes the only viable option.
The consequences of retail closures extend beyond retailers themselves. Consumers will be forced to travel greater distances to access essential goods, placing an additional burden on their budget as gas prices surge once again. While relying on delivery services may be an option, the associated costs will inevitably rise as delivery personnel have to travel longer distances. Even with this alternative, there is the constant concern of falling victim to porch pirates.
These escalating theft rates did not occur by chance and are reversible if there is a collective will to address the problem. Since the Summer of Love in 2020, some municipal governments have sent a clear message to potential rioters: they can act with impunity if they identify as victims, as there would be no consequences for their actions. However, laws permitting such behavior should be repealed, and law enforcement reinstated to a point where they can indefinitely detain looters. This would signal that the era of consequence-free looting is over. If cities and states fail to summon the courage to take such action, they may face the stark reality of becoming ghost towns with nothing left to loot.
