The National Retail Federation announces increase in average shrink rate while retailers take needed steps; Coreland’s Vicky Hammond comments on prioritizing security.
By Richard Berger | September 28, 2023 | As published by GlobeSt.com
Target announced it is closing nine Target stores across four states, effective Oct. 21, after experiencing widespread theft at the locations.
These properties are in Seattle, Portland, New York City, and San Francisco. It will continue to operate its other 150 stores nationwide.
…The retailer said it had “invested heavily in strategies to prevent and stop theft and organized retail crime” in its stores, such as adding more security team members, using third-party guard services, and implementing theft-deterrent tools across our business.
…It is not alone. Organized theft has become a problem across the retail industry, with the National Retail Federation’s National Retail Security Survey reporting that the average shrink rate in FY 2022 increased to 1.6%, up from 1.4% in FY 2021 and in line with shrink rates seen in 2020 and 2019.
When taken as a percentage of total retail sales in 2022, that shrink represents $112.1 billion in losses, up from $93.9 billion in 2021.
…Many retailers have been forced to take more drastic action, including reducing operating hours in some locations (45%), reducing/altering the availability of products in stores (30%), or even closing some locations (28%).
Vicky Hammond, Managing Principal, Coreland Companies, tells GlobeSt.com that combating retail crime and ensuring property safety is a high priority for each of her clients.
Coreland is a leading leasing and property management company serving California shopping centers. It operates 130 properties.
“All properties are facing these rapidly growing trends, no matter the location of the property, density of the area, or tenant mix,” Hammond said.
“It is our responsibility to consistently evaluate the safety of the environment as real estate managers. Increasing security is an obvious first step, but issues cannot always be addressed with traditional tools.” Coreland Companies recently introduced off-site security and AI-powered security monitoring at select properties, in tandem with on-site personnel. At other properties, it has proactively engaged with law enforcement to meet with tenants regularly and provide security training.
“It is not a surprise that Target and other retailers have made such bold moves,” Hammond said.
“The losses and risks are dramatic. For the sake of our communities and our businesses, we must also advocate for legislative changes.”
As an example, ICSC is supporting efforts behind the “Combating Organized Retail Crime Act of 2023” to give judges, prosecutors, and law enforcement the tools needed.
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