Companies take extreme measures to guard against rampant shoplifting and organized crime theft

Retail theft It has swelled in the past few years, causing billions of dollars in trouble for retailers and forcing companies to take drastic measures to guard against lost profits.

Many pharmacies, grocery stores, and other retailers have shortened store hours or have been forced to close permanently as locked merchandise has become commonplace to protect against shoplifters and thieves.

“It has to do with all the shoplifting,” a Walgreens employee told Fox Business last month about why ice cream freezers are secured with chains and locks.

The National Retail Federation reported last month that crime has taken its toll on retailers across the country, costing businesses about $94.5 billion. It’s affected businesses large and small, with Target reporting a 50% increase in shoplifting incidents last year, which amounts to a whopping $400 million in losses.

NYC WALGREENS store keeps ice in chain freezer, locks up candy amid ongoing shopping frenzy

New report Released by DealAid, which was provided to Fox News Digital, found that more than 80% of retailers across the country had seen an increase in robbery-related violence last year. About 56% of small retail businesses were robbed in the past year, and 46% of small businesses had to increase prices due to theft losses, according to the report.

As Walmart CEO warns of crime wave’s impact on retail, reports show how thieves are robbing stores

In addition to installing more special security measures such as cameras, security guards, and dedicated retail loss prevention team members, some stores are taking more high-tech measures to protect their merchandise.

Home repair chain Lowe’s has announced a campaign against power tool thefts, with a new process that will leave items virtually unusable after they’re stolen. A new initiative called “Project Unlock” will use RFID chips and scanners to activate power tools when you purchase them.

If a power tool is stolen and it is not activated upon check out, it will not be turned on.

“Over the past few years, thefts — largely driven by organized groups — have skyrocketed across the entire retail industry,” Louise said in a December 2022 video announcing the initiative. “The end result has been faithful store experiences that punish customers.”

“We think there are better ways to reduce theft than closing products.”

Home Depot started a similar initiative last year to protect its power tools.

But for many other retailers, closing merchandise remains the main response to rising crime — especially in cities like Los Angeles, San Francisco and New York.

WALMART CEO Doug McMillon says theft is ‘higher than it has been historically’

“Everyone is shutting down everything. It’s a siege mentality,” Joe Budano, CEO of Indyme, told Forbes last year. Indyme is a San Diego-based company that sells security devices such as help buttons that customers hit when they need an employee to retrieve something from a locked safe, and according to Budano, the business boomed 40% last year.

Customers at some drugstores and supermarkets have seen everything from candy to mascara to nasal sprays go under lock and key in recent months, prompting frustration.

“I always had a hard time finding an employee to come open them,” Arizona native Roger Evans told Insider last month about why he stopped shopping at Walgreens and CVS for razors. “The drug stores were constantly understaffed.”

Although security helps prevent theft, it risks losing customers because of the extra waiting time for a store employee to come and open a locker or product, critics said. Bodano estimated that retailers typically see a 15% to 25% drop in sales on customers who refuse to buy a closed item, choosing to buy online or at a different store instead.

Some small shops which sells high-end items, such as jewelry, has moved to operate on an appointment-only basis.

In New York City earlier this month, a jewelry store was targeted by masked thieves who stole up to $2 million worth of gemstones in less than one minute.

The Brooklyn jewelry store will now operate on an appointment-only basis until it installs more security measures. The New York Post reported in April that it was a tactic that Madison Avenue stores on the Upper East Side used last year to combat daytime shoplifters.

San Francisco police are secretly rounding up retail stores and pharmacies

Small business owners without national chain money are getting more creative to protect their inventory.

A bar owner in Houston, Texas, told Fox News:Fox and friendsThis month he has been sleeping in his restaurant to protect against burglary.

“This is a major problem in our city right now,” said Raul Jacobo, owner of Cobo’s Barbecue. Co-host Carly Schmkus. “If I get frustrated… based on these robberies, I can imagine how families feel that they have already lost loved ones because some of the criminals are put back on the street.”

Theft is easy, says SF Shopping Compact, and Lax security puts where the store is cracking down

He added, “It’s just a very frustrating situation…all around…we have no choice but to sleep in our institutions just to protect what we have.”

In Philadelphia, a gas station owner has hired private security guards wearing Kevlar jackets and armed with AR-15 rifles or shotguns to protect the facility.

In the past year, San Francisco police have been monitoring popular retailers like Walgreens, Old Navy, Target, Whole Foods, CVS, and Macy’s to catch shoplifters and other retail thieves.

Shoplifting and organized retail theft are unlikely to disappear from stores this year, experts said.

Click here to read more from FOX BUSINESS

The study published by DealAid shows that organized retail crime increased 26.5% last year, but the vast majority of retailers, at about 68%, do not have departments dedicated to preventing organized retail crime, such as smash-and-grabs.