How organized retail crime became a $100 billion problem that is growing 'dramatically'
Retail crime continues to burden communities, consumers, and store employees across America
Solving organized retail crime requires a strong ‘coordinated effort’: Matt Shay
National Retail Federation President Matt Shay reacts to the report that organized retail crime was up by 26.5% annually in 2021 on ‘Varney & Co.’
President of the National Retail Federation Matt Shay detailed the proposed pieces of legislation that his association is supporting to put a stop to America's "extraordinarily challenging" organized retail crime problem.
"I would say right behind concerns about the economy, the strength of the consumer, monetary policy, the Federal Reserve, inflation, the number one issue is organized retail crime. It is hurting these cities. It is serving urban areas, employees, and team members. And we need a really coordinated effort," Shay told "Varney & Co." Thursday.
The National Retail Federation conducted a survey that revealed organized retail crime has spiked by 26.5% in 2021. As a response to these findings, the NRF is supporting two pieces of legislation that are currently pending in Congress, one being the "Inform Act," and the other the "Combatting Organized Retail Crime Act."
"'The Inform Act,' which would require online marketplaces to provide much more transparency about the source of the goods they're selling, so we can reduce the amount of counterfeit goods that are sold online marketplaces," Shay continued. "And the other is "The Combatting Organized Retail Crime Act," which would put law enforcement together at all levels - federal, state, local, Department of Homeland Security - and share resources."
SAN FRANCISCO, CA - NOVEMBER 30: A security guard who identified himself only as Mario keeps watch outside The Real Real store, which has had its windows boarded near Union Square on November 30, 2021 in San Francisco, California. (Photo by Ethan Swo ( Ethan Swope/Getty Images / Getty Images)
"The Inform Act" and "Combatting Organized Retail Crime Act," are intended to address organized retail crime, though disorganized shoplifting continues to be a "huge challenge" for local communities. State legislatures, municipalities, and prosecutors across the country have attempted to take a different approach to the so-called "victimless" crimes, however, it is evident that disorganized retail crime is a dangerous problem.
"We know they're not victimless. They hurt employees, associates, morale, and they hurt those communities," Shay argued.
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According to the National Retail Federation President, disorganized retail crime is a far more complex problem that will require a "national conversation" for any purposeful change.
"It is a national issue with local solutions. And part of it is continuing to have conversations like this one, highlight it, make sure people realize how terrible this challenge is and really put a lot of pressure on local officials to try to fix this," he continued.
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San Francisco Police officers stand guard outside of the Nike store while shoppers search for Black Friday deals at Union Square in San Francisco, Calif. Friday, Nov. 26, 2021. (Jessica Christian/The San Francisco Chronicle via Getty Images) (Jessica Christian/The San Francisco Chronicle via Getty Images / Getty Images)
"It's grown dramatically in the last three years. There are more than 85% of respondents to the survey work that we do that says this is a real problem. Not only for those communities and for those consumers, but those employees in those cities, in many urban areas, it's extraordinarily challenging," Shay added.
As organized retail crime remains a multi-billion dollar issue that continues to plague consumers and employees across the country, the National Retail Federation says it will continue to do whatever it can to protect the incredibly vulnerable industry, its frontline employees, and consumers.
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