Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/753030
14 S C T / D E C E M B E R 2 0 1 6 R etailers are increasingly concerned about gangs of criminals preying on their supply chains and stores and eroding profits, according to a National Retail Federation survey of 59 retail- loss-prevention executives. This organized retail crime (ORC, in industry parlance) activity has increased in the past year, according to 83 percent of those responding. "Retailers continue to deal with the challenges that come with fighting organized retail crime," said Bob Moraca, NRF's vice president of loss prevention, in a press release. "Every day, criminals are getting more creative." All the survey respondents, without exception, said that their companies had experienced organized retail crime in the past year, up from 97 percent of the respondents to the 2015 survey. This is the first time in the survey's history that 100 percent of those responding reported victimization. The average loss was $700,259 per $1 billion in sales, according to the survey, up significantly from $453,940 last year. With the problem growing, 71 percent Los Angeles worst-hit market for organized retail crime ALERT SYSTEM Landlords want to be able to communicate quickly with shoppers and tenants in the event of emergencies such as harsh weather and power outages. More are relying on third- party technologies to stay connected. Dallas- based Pocketstop, which sends out mass notifications through a service called Redflag, said its business with shopping centers has grown by 33 percent in the past year. The company plans to launch a new mass- notification service next year that will use a shopping center's Wi-Fi network. NEW SHERIFF IN TOWN Mercer Mall, in Beckley, W.Va., recently hired Barbara Reichert to serve as security director and to build an internal security team as it transitions from using a third-party contracted security firm. Reichert, who has 31 yars of law-enforcement experience, including stints with the U.S. Air Force and at the Hillsborough (Fla.) County Sheriff's Office, is tasked with building an internal security team to guard the 660,000-square-foot property. "With all of the events occurring around our country and the world," Reichert said, "my goal is to create a worry-free environment for customers and merchants for their shopping experience." of these executives said their top managers understand the severity and complexity of these crimes, up from 63 percent who had said so last year. Organized gangs often use storefronts, pawnshops, flea markets and kiosks to fence stolen goods, and 63 percent of those surveyed said they had recovered merchandise from a physical location. But many criminals turn to the Internet for the anonymity it offers — 58 percent of the respondents said they had identified stolen merchandise from such an operation. Criminals are also finding ways to exploit stores' return policies. Some 68 percent of the respondents said thieves had returned stolen merchandise for store credit. Criminals also resell the merchandise to secondary-market buyers. Los Angeles remains the hardest-hit area for organized retail crime in the nation, as the city has been since 2012. Next are New York City, Chicago, Miami, Houston, San Francisco/Oakland, Arlington/Dallas/Fort Worth, Atlanta, Philadelphia and California's Orange County, in that order. n S E C U R I T Y T H E C O M M O N A R E A