Inventory Shrinkage Continues To Grow

WSJ  | You may have heard that a mob of teenagers looted stores in downtown Philadelphia on Tuesday night, and Target said the same day it is closing nine stores in four states because of rampant crime. Rack up more victories for progressive prosecutors.

The mobs in Philly hit Apple, Lululemon and Foot Locker stores in Center City, which ought to be a safe space for civilized commerce. The Foot Locker store was “ransacked in a coordinated attack,” said police. Police have made more than 50 arrests and are investigating property damage and theft elsewhere in the city. Some 76 incidents have been reported.

Interim Police Commissioner John Stanford said police are looking into whether “there was possibly a caravan of a number of different vehicles that were going from location to location.” He added, “Everyone in the city should be angry.”

Anger is justified in particular toward District Attorney Larry Krasner, who waves away property crime. His office reports 424 retail theft charges so far in 2023—compared to more than 1,500 by the same date in 2017, the year before he took office. Reports of retail theft in Philly have increased by more than 30%—to 13,330—compared to a year ago, according to the city’s latest weekly crime report.

Retail theft is a nationwide epidemic, according to a National Retail Federation (NRF) survey released Tuesday. For the 2022 fiscal year, retailers reported a “shrink” rate of 1.6%, mostly from theft, which as a percentage of all retail sales would be a $112.1 billion loss for the industry, says NRF.

“We cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance,” Target said in explaining its decision to close two stores in Seattle, three in Portland, Ore., three in San Francisco and Oakland, and one in New York. Target said the closures are despite efforts to prevent theft by “adding more security team members, using third-party guard services, and implementing theft-deterrent tools across our business.” CEO Brian Cornell said in May that Target could lose $500 million from shrink.

More than a quarter of retailers in the NRF survey reported closing stores because of violence and crime, and 45% reduced operating hours. Of the cities in Target’s closure list, all but Portland make the NRF survey’s top-10 cities for organized retail crime in 2022.

George Soros and the progressive DAs he finances claim to be helping the poor and minorities, but those communities are the main victim of rampaging theft. The Target store shutting down in New York is in Harlem, which staged a renaissance during the Rudy Giuliani and Mike Bloomberg mayoralties. It is now sliding back into crime and disorder.