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'The bane of retail.' To prevent theft, many big chains now lock up all kinds of merchandise

Marisa Gerber, Los Angeles Times on

Published in Business News

Retail theft has become a priority for California leaders in recent years.

In September, Gov. Gavin Newsom sent $267 million to cities and counties to increase arrests and prosecutions of organized retail crimes. A few weeks earlier, L.A. Mayor Karen Bass announced a task force focused on such crimes, following a string of robberies at high-end stores such as Gucci and Yves Saint Laurent that garnered a flurry of media attention and helped further cement a new phrase into the zeitgeist: A smash-and-grab.

In February, California Attorney General Rob Bonta filed criminal charges against a woman he called the ringleader of a retail theft group prosecutors say stole nearly $8 million in beauty products to resell on her Amazon storefront. And last week, the coalition behind a tough-on-crime ballot initiative that would roll back the landmark Proposition 47 by stiffening penalties for some retail thefts in California submitted enough signatures that it appears the measure will go before voters in November.

The initiative was bankrolled largely by big chains, including Walmart, Target and Home Depot.

While the companies work publicly to change California law, they are taciturn about discussing their efforts to stop shoplifters, making it hard to quantify how much more merchandise is now locked up and which stores have embraced the strategy.

Representatives for several of the region's largest retailers — Target, Vons, Rite Aid and CVS — either didn't respond to requests to discuss internal deliberations on stemming theft or sent brief statements about their anti-theft measures.

 

David Johnston, vice president of asset protection and retail operations at the National Retail Federation, said that locking up more merchandise is "an unfortunate necessity" to combat theft and what he characterized as a rise in organized retail crime and violent incidents in stores.

Retailers know that the additional supplies and labor needed to lock up more merchandise cut into their bottom line and frustrate customers, Johnston said, but some have decided it's a necessary trade-off to keep shelves stocked with often-stolen items such as baby formula and medications.

"Right now, the best approach in many instances is putting it behind lock and key," Johnston said. "These measures are last-ditch efforts."

Joe Budano, the chief executive of Indyme, a San Diego-based company that makes buttons to beckon sales associates to specific aisles, estimated that frustration over waiting for locked merchandise leads to a 10% to 25% reduction in sales, calling the cages "the bane of retail."

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