The Growing Threat of Retail Theft: Cities and Companies at Risk
The rise in retail thefts, often by flash mobs, is posing a serious threat to the viability of brick-and-mortar stores. Retailers such as Target, Dick's Sporting Goods, Lowe's, and Macy's have reported reduced earnings due to increased crime, leading to store closures. In 2022, retail theft rose by 20%, resulting in $112.1 billion in losses. This trend is driving older Americans to shop online, with their online shopping rate doubling from 19% to 42% between 2022 and 2023. Retailers are turning to technology, such as AI-powered analytics and RFID inventory tracking, as well as autonomous robots and drones, to mitigate theft. However, these measures can negatively impact customer service and create an atmosphere of distrust, requiring a delicate balance to maintain sales and margins.