PORTSMOUTH, Va. (WAVY) — We’re entering the busy holiday shopping season, but some crooks are finding other ways to fill their stockings. The number of thefts in stores is going up, and it’s costing you.
Phil Scotti has been in business since he was 20. He runs Philip Michael Fashion For Men, and it’s been his passion for over 50 years. But, that passion can be diminished when thieves target your store.
The National Retail Federation reports, nationally, the amount of merchandise lost to theft, fraud and damages went up from $93.9 billion in 2021 to $112 billion in 2022. Viral videos seen on the news and online show the worst of it.
“And immediately, within seconds, stealing $10-15,000 worth of merchandise in one fell swoop off of tables, off of racks and stuffing them into trash bags,” said Jenny Crittenden, President and CEO of Retail Alliance in Norfolk.
On the larger scale, it’s called Organized Retail Crime and it can have devastating consequences.
“You’re starting to see national brands that are closing stores in certain cities because it’s becoming more expensive for them to secure their stores than what they’re actually profiting on the back end,” says Crittenden.
Locally, the state of Virginia loses around $1.3 billion in merchandise a year through Organized Retail Crime. The good news is Virginia just passed a law making those large smash and grab robberies a Class 3 felony punishable by up 20 years in prison. The bad news is it only applies if the crooks get away with at least $5,000 worth of merchandise. And more bad news–those thieves will often set up shell companies on Amazon or eBay and sell those stolen items to unsuspecting consumers.
On a smaller level, it’s considered shoplifting. And combatting it is where Phil Scotti shines.
“And the way you prevent it is customer service. You look the customer in the eye and you’re with the customer, you talk to them, and they hate it; they’ll leave the store,” said Scotti.
He meets with his employees regularly, teaching them how to spot it.
“A shoplifter gets nervous when you’re looking at them. They don’t come in by themselves; they’ll come in with a group. So, you’ll watch their eyes, and they’ll signal to the other person what’s going on.”
And this is where it affects the law-abiding customer. Small business insurance doesn’t cover casual shoplifting. That lost revenue comes out of the owner’s pockets, which in turn hits your wallet.
They steal it, but you pay for it.
“If you have shoplifting, you’re going to have to absorb the cost somehow, so you’re going to raise your price,” said Scotti.
But then the issue really snowballs and can hurt residents city-wide, no matter where you shop.
“The shop owner’s a victim, local governments are the victim because they’re now not collecting sales tax revenue on the items that are stolen,” said Crittenden.
This revenue goes to pay for our local infrastructure, education, and upkeep of our parks and greenspaces. When these crooks steal from a small store, they steal from the whole community.
And even though being a retailer has gotten more difficult, Scotti would still encourage folks who are thinking about opening their own shop. “Why? Because if it’s someone’s dream and passion, don’t take that passion away just because of shoplifting.”
Many stores won’t even report shoplifting because the suspects are rarely caught.
Stores like Lowe’s are experimenting with programs like “Project Unlock” which targets thieves stealing power tools. The program centers around embedding a wireless RFID chip into a powered product. In order for the product to work, it must first be scanned at the check-out register. The hope is crooks won’t steal it if it won’t work and in turn can’t sell it for profit. Learn more about this program by clicking here.
