A nationwide retail theft epidemic cost the United States close to $100 billion in 2021. Stores are being forced to raise prices or shut up shop, insurers are refusing to help, and smaller mom and pop stores are being left behind. In this series, Mayhem on Main Street, the Washington Examiner will investigate the causes behind the scourge of shoplifting, the role of the cartels, the cost to stores big and small, and the complicity of lax prosecutors. Part 2 investigates the role of the cartels. To read Part 1, click here.
Mexican cartels are behind the spike in organized retail crime and are deeply entrenched in every level of the process, according to the federal government’s chief investigative agency.
Retailers nationwide sustained nearly $100 billion worth of losses in 2021, the highest year on record, according to the National Retail Federation report published in September 2022. The growing number of cartel-run theft rings around the country drove that figure up from $70 billion in 2019.
SMALL BUSINESSES HELPLESS OVER SPIKE IN RETAIL THEFTS, SAY THEY FEEL ABANDONED BY LAWMAKERS
“Organized retail crime is leading to more brazen and more violent attacks in retail stores throughout the country. Many of the criminal rings orchestrating these thefts are also involved in other serious criminal activity such as human trafficking, narcotics trafficking, weapon trafficking, and more,” said Steve Francis, acting executive associate director for Homeland Security Investigations, in a statement. HSI is part of the Department of Homeland Security’s Immigration and Customs Enforcement.
This retail theft mob happened at a Nordstrom in California today. Because of broken state laws, these crimes are considered “non-serious” and “non-violent” and nobody will go to state prison, even if caught and convicted. State laws need to be fixed and YES, many people need to… pic.twitter.com/nESaJSxj4p
— Jeff Reisig (@jeffreisig) August 13, 2023
The Retail Industry Leaders Association described the acceleration of organized retail crime in recent years as having “exploded.”
In fact, 80% of retailers polled nationwide reported an increase in merchandise stolen in 2022, according to the National Retail Federation.
No subindustry of retail is exempt. A spokeswoman for the home improvement corporation said Home Depot’s most targeted items have been wire and wiring devices, power tools, and home automation products. When stores lock up those items, it only prompts thieves to focus on stealing other high-ticket items.
“Organized retail crime is an ongoing issue, and it has been on the rise over the last several years for many retailers,” said Evelyn Fornes, Home Depot’s senior manager of public affairs.
Organized retail crime has taken a huge toll on federal and state governments, costing them $15 billion in lost tax revenue, not including lost sales taxes, according to HSI.
Additionally, the average family will fork up an extra $500 annually to cover rising costs of goods as companies increase their prices to make up for stolen goods.