US retail stores' closure sparks debate

The closure of retail stores in some major US cities has sparked a political dispute about the reasons, with organized shoplifting rings and employee safety often cited.

Recently, the mayor of Portland, Oregon, Ted Wheeler, said the largest US retailer Walmart is leaving the Northwest city because of crime.

Texas Governor Greg Abbott tweeted a link on March 5 to an article about Walmart's decision to close its last two stores in Portland, which will affect 580 workers.

In December, Walmart CEO Doug McMillon said: "Theft is an issue. It's higher than what it has historically been."

Wheeler said on March 6 that "dozens of Walmart stores … have closed in Texas in recent years".

"The retail industry is changing and retail theft is a national issue," Wheeler said.

Footwear giant Nike, headquartered in Oregon, had offered to pay off-duty Portland police officers to provide security at one of its stores. Nike has said that the problem is nationwide, and some of its warehouses and even trains carrying its merchandise have been hit.

In a March 8 hearing on a bill in the Oregon Senate, law enforcement officers, grocery store representatives and lobbyists for the retail industry backed increasing jail time for those involved in organized retail theft.

Retailers say the main problem is organized rings that involve multiple suspects rushing through stores and stealing large quantities of goods.

In New York, there also have been problems with repeat individual offenders.

New York Mayor Eric Adams said a shoplifting surge is costing low-income retail workers their hourly wages.

Some New York lawmakers have linked the rise in shoplifting incidents to a 2019 bail reform measure approved by the state Legislature in Albany that encouraged judges to use the "least restrictive" means to compel people to return to court.

Adams has endorsed Governor Kathy Hochul's plan to allow judges more leeway in determining bail amounts for criminal defendants.

"People who say that we're criminalizing the poor — they're wrong," the mayor said on Feb 15. "Poor and low-income New Yorkers are being unemployed because we're losing those businesses in our city.

"So, what we can't do is allow repeat offenders to make a mockery of our criminal justice system — and repeatedly," said Adams, a former NYPD captain.

Last year, legislators in California, Florida, Louisiana and North Carolina increased penalties for stealing from stores.

Under an amended law in Louisiana, those caught stealing as part of a group could face up to seven years in prison.

'Persistent threat'

"Whenever there's a push toward greater criminalization, whenever there's a narrative of increased crime and things like that, it is always consumers of color that are going to be bearing the brunt," said Tiffany Gill, associate professor of history at Rutgers University.

"Organized retail crime remains a persistent threat to the retail industry, accounting for more than $94.5 billion in losses in 2021," the National Retail Federation, or NRF, said in a Feb 9 news release. "These sophisticated crimes permeate the entire retail ecosystem, impacting consumers, employees and communities nationwide.

"While retailers remain vigilant in the fight against ORC, federal support like the Combating Organized Retail Crime Act of 2023 is needed to level the playing field with additional resources and coordination among federal, state and local law enforcement agencies, the NRF said.

The NRF said that its latest security survey of roughly 60 retailers found that inventory loss — called shrink — averaged 1.4 percent last year.

The greatest part — 37 percent — came from external theft, including products taken during organized shoplifting incidents. It also noted that retailers on average saw a 26.5 percent increase in organized theft incidents last year.

Some business owners were forced to lock up products and double the number of security guards at some stores.

But locking up items also reduces sales by 15-25 percent, according to Joe Budano, CEO of Indyme, a technology company that sells security devices to retailers.

Massive online marketplaces such as Amazon and Facebook have been used by those looking to sell stolen goods. Criminal outfits recruit people to steal from stores in exchange for drugs or cash. Such "boosters" may lead to the stealing of items from multiple stores across state lines.

Retail industry executives in San Francisco blame a 2014 ballot measure that reclassified nonviolent thefts as misdemeanors for goods worth less than $950.

In November, California Governor Gavin Newsom announced efforts to curb rising retail crime.

"Organized retail theft costs businesses, retailers, and consumers — and puts the public at risk," California Attorney General Rob Bonta said in a statement.

Agencies contributed to this story.