Retailers say thefts are at crisis level. The numbers say otherwise
latimes.com
latimes.com
I have a relative who worked at Walgreens in the bay area. Mind blowing daily theft. The walgreen shut down.
Local politicians say theft is falling. But at least this location did not report each theft - it wasn't worth it, they'd be busy filling out forms to report theft all day and even if caught nothing would happen.
The big risk was actually that a thief would be caught and get hurt and then sue. There was a much higher chance of consequences for that then the theft itself. This location at least went to extreme lengths to tell employees not to stop the thefts.
I live in dogpatch and like SF (the area I live is nice).
The shelves were 90% empty (likely because they were closing shortly), what remained on the shelves was entirely locked down. They had one security guard. Behind the counter in the pharmacy was a sign that said "we will get through this together" that looked like it had been put up by the employees (it wasn't some corporate poster, but something that looked printed). The lighting was harsh, the employees seemed stressed out.
The tiny room they took us into for the shot was dirty, and the entire place was in generally pretty poor shape. This was one of the ones that got hit a lot by people with garbage bags emptying shelves repeatedly.
Relatedly the raids in Union Square also looked pretty extreme and there are lots of pictures of boarded up retail to try and prevent future raids. There's also a ton of car smash and grabs and you see a lot of window glass on the street walking around. I think London Breed's response is the right one, hopefully she's able to do what she says.
This is controversial off topic politics for HN, but lots of police presence in the tenderloin, a strong crack down on dealers, and giving addicts on the street an option of treatment or prison seems like the way forward (in addition to building a lot more housing to increase supply/lower costs generally).
It's pretty depressing.
(Not that I'm blaming you personally in any way, I meant us citizens).
There are regional quirks though and problems with incentive structures that can lead to bad outcomes nobody wants. The politics in SF right now are pretty bad, but there are 2 recall elections coming up that are likely to pass. Hopefully things are starting to turn around.
The UK isn’t immune to these issues either I remember looting in 2011 or so? It’s hard to get the full picture from these kinds of snippets.
That's right we did. It was due to the killing of Mark Duggan by the police :
https://en.m.wikipedia.org/wiki/2011_England_riots
It only lasted a few days, as the police came down hard on the criminals. Think of it as a precursor to the BLM riots.
These are "shrink" numbers not police reports.
Source: former front end/grocery manager for a grocery store.
If this was possible, more and more businesses would do it, increasing the cost of insurance (for the insured and for everyone else in their business) until what you pay in insurance balances out what you scammed for.
Sure, maybe one store could do it and get a bit more money than competitors or maybe they just all claim a little bit, part of which is real shoplifting, part is wrong data (whether intentionally wrong or not). Considering insurances are still standing and making more money than ever, what you say can't be more than anecdotal.
It's mainly an accounting hack with little value to negative value for the company as a whole after your company reaches a certain size, I agree. There is the classic idea insurance idea that because retail runs on thin margins, keeping the money flowing is important so the whole house of cards doesn't fall down from a huge decrease at an inopportune time, but the relationship stays around way longer than is necessary because of the social organizational effects above, IMO.
At least locally, these stores would be uninsurable even if coverage was offered. Insurance companies are not idiots. "Insurance" is not intended for ongoing steady losses, but irregular hard to predict losses.
Are you sure this was insurance paying? Did you ever see a claim form?
Many businesses do have a shrink budget, and if corp doesn't want action taken (ie, no stops) a local store can claim back shrink to be fair to its local managers in terms of their numbers.
And like I've said below, insurance isn't an idiot here. They come out ahead on pretty much every situation, either as a wash for money but with way more data for their actuaries, or they increase premiums if larger robberies occur more frequently. 'Insurance always comes out ahead' is a great axiom to live by.
> If organized retail thieves steal $70 billion annually, and California accounts for 10% of the U.S., California’s losses add up to $7 billion, meaning the Bay Area “is likely in the billions itself.”
CA being 10% of the population does not mean you can take a national $ of retail theft and divide it by 10. Yet, the author tries to conflate this multiple times in the article and then comes up with a non-sensical conclusion in the last paragraph. There are so many leaps of logic that it made my head hurt.
"Asked how the organization arrived at that figure, a CRA staffer said that “there’s no way of knowing exactly” how much organized retail crime affects the bottom line of businesses. The staffer said the estimate was based on a back-of-the-napkin calculation: If organized retail thieves steal $70 billion annually, and California accounts for 10% of the U.S., California’s losses add up to $7 billion, meaning the Bay Area “is likely in the billions itself.”"
It was immediately followed by,
"Leaving aside some of those assumptions, how did they come up with that $70-billion number? The staffer pointed to a report from the Retail Industry Leaders Assn. published this year. But that report didn’t find that organized retail thieves stole $68.9 billion per year at all — it estimated that all retail crime combined, including employee theft, regular shoplifting and fraud, added up to that number."
In other words, a rebuttal of the quote.
The final paragraph is,
"On the other hand, stolen merchandise can sometimes be recovered. The CHP reported that it contributed to recovering $20 million in merchandise stolen by organized theft rings in 2020. If the national average of 0.07% losses holds for California — Mathews at the NRF said the group could not break out data by state — that’s more than 10% of losses to organized retail theft in the state, well above the national recovery rate for stolen items (excluding cars), which hovers below 4%, according to the FBI."
I had no problems making sense of that.
0.07% is the estimate for "organized retail theft" which does not include "employee theft, regular shoplifting and fraud". How often did gangs of thieves break into the Walgreens to steal all the cosmetics?
"The walgreen shut down."
There was a restaurant near me, a local landmark. It closed down when the original owner retired, but was reopened by one of his relatives several months later. It lasted about a couple of months, then closed abruptly with hilarious signs on the door about the government stealing all the money---apparently the new operator hadn't realized that employment taxes were a thing. Was it the evil government that killed the restaurant, or the new operator's incompetence?
In 2010 This would have been handled. Not sure what changed but these cities and their bureaucrats really don’t seem to care. People, however, do care about themselves, their families and their businesses. if this continues you can expect a major outflow of people, capital and talent.
It still made crime rates skyrocket in the area, people were advised not to walk in the area alone, etc. It didn't get "handled", it festered a long while before it was finally dismantled.
Just watching a thief pocket something and walk out the door without saying a word to them seems nuts. I still have difficulty believing this happens in most of the country, apart from urban areas. Certainly where I live there's lots of employes working in stores and no homeless around. meanwhile downtown the stores all seem to have minimal staff and incidents seem to be pretty common.
If this is a troll account, 10/10
Now if you want to grant that view for a second, I think its rational, what are we left with to say? Is it a symptom of the forces of evil that exist, and must be kept at bay? I dont like that view! At some level, I just don't understand precisely where this anger is directed at, its always like people have someone in mind..
I think I'm radical only in the idea that if society is going to manifest symptoms, so be it. We are all doing what we can. I maybe know some ideas of how to fix some things, but that doesn't even need to be the point!
I get that like everyone is angry at people who steal, I have been a victim of great theft in my life.. But I don't think its ultimately the evil of that person I am angry at, its the world where he is compelled to or not. And if he was just some low life scoundrel in an otherwise utopian society? Well I'd probably be angry for a bit, but it would be fine.
This has to be a troll, right? I like how you assumed the person was privileged, got corrected and then doubled down like this.
Clearly the folks doing the shop lifting are on the lower end of the economic spectrum. This does not give them the right to steal. Every society in history has had rules against theft. We want to live in a society where we don't have to bolt everything down to the ground and cover it in chains/fences.
Not every store is a faceless evil mega corp. The small timers are getting hurt by these flash mob robberies as well. Small stores in Oakland are getting hit multiple times.
I know somebody that sold shoes at a flea market. A very humble business. Somebody followed him home one night and stole his truck filled with $20k of shoes. This was a massive financial setback for him. Do you think the people that stole his truck has the right to take his livelihood away from him? Actually don't even bother answering....
I'll grant you I'm crazy for this, but I simply dont understand this implicit worldview that the primary problem in these matters is so many different bad actors; the moral conceit that some people are just "bad" and will steal, they were born and/or raised that way, and the most we can hope for is to keep them at bay.
I simply do not subscribe to that belief about people, I am not saying these things are free from injustices large and small. I just dont think its fruitful to think about it how you seem to be. We should try and put it all in the context it is happening in, not within trans-historical "society".
I dont expect you to agree, or to make many friends, but at least I don't live in a world full of evil people without explanation, and the only thing to do is find them and punish them.
Its a trade off.
https://en.wikipedia.org/wiki/Crime_in_the_United_States#/me...
Or, if you'd rather, here's California's statistics:
I'm having trouble figuring out what to believe, whether this is a handful of brazen thefts amid normal theft rates, a small increase, a true theft epidemic, or maybe theft has decreased even.
I honestly don't know and don't know how I could gain that knowledge. Watching a few videos isn't going to do much for me though, evidence wise.
https://en.wikipedia.org/wiki/Crime_in_the_United_States#/me...
Which is probably pulling data from the same source as
https://bjs.ojp.gov/sites/g/files/xyckuh236/files/media/docu...
Violent crime is another matter, with differing statistics for 2020 and 2021. on the other hand, it has quite a bit to go before it gets from 2019's 379.4/100,000 to 1990's 731.8/ 100,000.
https://www.disastercenter.com/crime/uscrime.htm
Here's California, if you want to lay an eyeball on that:
https://www.disastercenter.com/crime/cacrime.htm
Here is a good discussion of the sources of the numbers and so on:
https://www.pewresearch.org/fact-tank/2020/11/20/facts-about...
"If Trump was talking about the federal income tax rate that individuals pay, Americans still do not face the highest tax rate in the world. Again according to the OECD, the country with the highest national income tax rate is the Netherlands at 52 percent, more than 12 percentage points higher than the U.S. top federal individual income rate of 39.6 percent." ("Is the U.S. the Highest Taxed Nation in the World?": https://www.crfb.org/blogs/us-highest-taxed-nation-world)
Note: "top federal individual income rate" is the tax bracket and your actual tax rate would only approach that as your income approaches infinity.
I can't speak to mental health epidemics (twitch, twitch), and while we seem to lead the world in school shootings, they are in practice rather rare. But we are pretty disorderly.
What is more puzzling is that the real estate prices show no correlation with any of this 3d-world stuff. The FAANGs don't show any sign of concern for losing engineers either. So apparently they don't expect much impact.
"At a local level, more up-to-date statistics sharpen the image of a waning problem. Property crime in Los Angeles is up 2.6% from last year, according to LAPD numbers published Nov. 27, but down 6.6% from 2019. The category that includes shoplifting — “personal/other theft” per LAPD — is down 32% from 2019. A San Francisco Chronicle analysis of that city’s shoplifting crime data showed that the number of monthly reports had changed little in the last three years, though it also raised some major questions about the accuracy of shoplifting reporting to law enforcement. Smash-and-grab thefts are classified differently because they involve violence, trespassing and high-value hauls, and suspects have been charged with robbery, burglary or grand theft after recent incidents in L.A. and San Francisco."
Anecdotes weren't data in 2010, either. Not that any body cares then or now. But that's pseudo-intellectual nonsense. How long do you expect it to be before SFPD has an officer in riot gear with military weapons in every Walgreens, convenience store, and bodega?
it wasnt handled in 1992 leading to public taking matters into their own hands
I know if I report a reimbursable event to my insurance company, my rates will go up until the reimbursement is more than paid back, then will fall back. So I consider whether it is worth it to clam it or not.
In the case listed above, they have reason to report in insurance claims, yet it isn't manifesting there either.
Which was, itself, a response to another crisis...
I personal theory is that there are two types of criminals - normal people who do the occasionally stupid thing (stealing a single item from retail or getting into a bar fight), and people who make crime their career path. The US model is to treat everybody as being in the latter group, while the Scandinavian model is to treat everybody as being in the first group. Instead we should treat people based on who they are, even if that means very different sentences for the same crime to different people.
Lucky for you, criminologists have crunched the numbers over and over again. Only 20% of prisoners are incarcerated for drug offenses—not just “low-level” ones. Furthermore, many of them are violent offenders who pleaded down to lesser offenses as part of a plea bargain.
In other words, the United States could release every single drug offender from prison and still have the highest incarceration rate in the world. Mass incarceration is overwhelmingly driven by violent offenders. America is simply a much more violent country than any European one.
https://www.sfexaminer.com/news/organized-crime-rings-are-dr...
https://www.sfchronicle.com/crime/article/Bay-Area-retail-th...
There are organized groups recruiting significant numbers of people to do retail theft, bike theft, and car break-ins. The police and legal system haven't been very effective at combating this, so over the past few years the theft has become very public and visible.
The experiment failed, and it's now time to clean up the mess and resume normal order.
https://www.sfweekly.com/news/is-san-francisco-re-funding-th...
I don't care if it's theft by individuals, shoplifting by employees, by customers or fraud. I don't care whether it's "organised or non". There is a 70bln figure of lost products to people who got something for free.
Theft is theft and it's happening because people know they won't be punished.
Same as the BLM riots, this is wrong, it's symptom of a society which doesn't function properly and it damages mostly honest low earners (with increased prices from businesses having to recoup losses, increasing risk of working in retail, etc) but criminals as well (because they learn crime works and don't join the productive side of society).
1) Retailers are lying (or, more likely, in the grip of a meme and convinced the numbers are spiking without any past objective data to back up the assertion)
2) Specific market sectors are being hit disproportionately hard, but it doesn't show up in the numbers because the market is growing or moving in a way that other sectors are utterly side-stepping this kind of theft.
If the latter, the next thing we can predict is the collapse of sectors (given the data sources, the predicted collapse would be most of the country would be fine but California towns would suddenly find mom-and-pops decide to do something else and major chains expect large conciliation from local governments to open a franchise location in their town).
1) considering that retailers aren't actually behind the moral panic, but rather politicians who run on law-and-order platforms and the funders that back them. Funders who couldn't care less about retail theft but have a vested interest in those politicians.
2) A gang of unarmed teens robbing a store at once is good footage for the news, and now that everyone has a cellphone it'll get filmed, and since the kids aren't armed, filmed with impunity.
A friend of mine was caught shoplifting before he left the PX (the general store on the base). The MPs put him in a room, and summoned his father, an officer. In the Air Force, officers are considered responsible for the behavior of their children (on and off the base). The AF considers an officer unfit for command if he cannot control his children.
The MP, with the permission of the father, gave my friend a good lecture about just what was going to happen to him if he did it again. Scared the crap out of him. Never did it again.
Stores can pursue _civil_ lawsuits and that's it.
Further the state source is 1 year old delayed. So not contemporary or current.
Then again, the LA Times is akin to CNN in being 100% leftist propaganda, all the time so they have no more credibility than the National Inquirer!
Also I wouldn't consider the NRF to be a state source; they are an industry retail group.
There are two main sources of crime information in the US: the FBI's reports of reported crimes, and the Bureau of Justice Statistics' surveys. (https://bjs.ojp.gov/content/pub/pdf/ntcm_2014.pdf) The latter do not depend on police reports.
"The numbers" would have to climb quite a bit to get close to peaks in 1990 or so.
Will this sort of breakdown prevent us from needing to present a biometric id to enter a shop in the future? (Frankly in the present too - eg Lithuania, China, France, etc.)
Unfortunately I don't think so, as the id is being marketed as a health security issue, rather than a anti-theft one. And mostly it seems we accept it on health marketing grounds.
I was surprised at the sheer brazenness of the theft - the jewelry store is basically smack dab in the middle of the mall, and the theft occurred during a crowded Sat evening, so it's not like the thieves were attempting to get out undetected.
What many people are reacting to is the clear belief by thieves that they won't be confronted or significantly prosecuted, and that breakdown in the social fabric is what many people are reacting to.
Having seen a bunch of HN articles about Walgreens closing stores in SF, is this a SF phenomenon? Or even a SF Walgreens phenomenon? It feels a little weird to see lots of people drawing national conclusions from a situation which doesn't feel national.
But, no. "Stealing from Corporations" is the headline crisis that exemplifies the shredding of our social fabric..
Sad to see the HN crowd adopt this attitude as if the presence of the other issues excuses theft because "corporations are the boogey man".
I don't disagree with you in theory, but in practice much of the "data" we get is also a manipulator. Lies, damned lies, and statistics and all that.
When you see someone steal something, it's like hearing a discordant note in a song. It makes you feel bad. I think that feeling is to some degree responsible for all social harmony and we really have no choice but to trust it.
-----
edit: All confidence games rely on people who put their guts first. Trust me.
No, don't, really. There are actual numbers you can consult, and the methods they used to compile those numbers are transparent and can be objected to.
This article comes off very cavalier. "Some times you need to break a few eggs to make an omelette."
Aka anarcho-tyranny.
So many people in this thread proudly explaining how they trust their guts over the statistics. That's how you end up in a police state.
I'm seeing an explosion of blatant moving vehicle violations - things that are hard to believe are "oopsie dasies". I drive _less_ now than I did ten or fifteen years ago, but I'm seeing double of careless red light running, stop sign running, excessive speeding, people spinning donuts in the middle of intersections, hit and runs. It's appalling.
On a similar token, I feel like I've never seen the level of clearly unregistered vehicles on the roads - expired temporary tags, expired tags, and often, no registration displayed at all. They seem to operate with virtual impunity.
Then you have people raising a fit about mask mandates, stealing in broad daylight, and the like. They know there's basically nothing going to be done about and it police departments all over are unlikely to respond. Petty theft of property (bikes, cars, etc) is through the roof and rarely is anyone implicated.
It's honestly depressing. I understand a lot of the factors are likely to be traced back to a diminishing economic prospects, but it's hard to see society coming apart at the seams like it is.
We all know the billions and billions of dollars they lost because of pirated movies.
Hell, I'd say comparing theft to gross sales is most fitting comparison, as it's the cost that the consumer actually sees. 50% of gross sales would mean for each 2 sales of an item, 1 gets stolen. Maybe it doesn't give a good view of how much it impacts a business with theft being priced in, but it sure does paint a good picture of how much theft happens.
Theft loss makes sense to present in relation to profits because the thieves in these cases resell the goods. The profits that the retailer would have made are literally transferred to the thief. The retailer still has its fixed expenses (rent, utilities, labor), so the theft basically comes directly out of the bottom line.
Article makes no mention of the policies that explicitly prevent authorities from apprehending shoplifters, from lowering requirements of arrest for less than ~$900 value, to defunding the police. There is no mention of any of this, yet it still tries to justify this by alluding to how little impact it causes on the large corporation. Not only is that besides the point, but think about the wellbeing of the store workers, and the customers witnesses, which will certainly change their behavior adding to the losses in the long run.
TL;DR: garbage
"Proposition 47 did not end prosecution of thefts under $950 in California"
There are multiple cases where people have argued they were justified in shooting a thief and won. I am only aware of people who owned the business themselves not employees, so there could be issues there.
In California you almost certainly won't win in a case like that. In Texas depending on the situation you very easily could.
It is of course not a guarantee and if the person is running away and you shoot them in the back you will probably lose.
This typifies why most of the fact checks from mainstream media organizations are worse than useless.. they're literally anti-informative. But left wingers get to keep feeling smug while they wonder why all the walgreens are leaving town...
It took years and the death of a homeless person by being burned alive for the 'compassionate' city council to do something about the problem. Their solution was to put up 2-hour parking signs—it was already illegal to park for more than 72 hours—and finally allow the police to do their job.
But if the retailers are closing up shop, it is not fine. They wouldn’t forego the profits this article assumes exist just to make a political point.
I don't believe the group's claims of damages. Could you visualize stealing 3.6 Billion dollars worth of retail items in just San Francisco and Oakland a year? Making up such a figure serves no one any good, especially not your own interests because it reduces your credibility.
It can still be an exaggerated number, but not only does the article offer no details as to how exactly this number was determined (which would have been interesting), it also fails to mention the potential intentions of why stores would report that... maybe it's the only way to get some attention to UNDO some of the legislation that has caused it.
I don't think that these smash-and-grab thieves will dare to upgrade themselves to armed robberies or hostage taking in this case, because that easily carries a death penalty which, given how many cameras are everywhere, will be nearly impossible to avoid.