CHICAGO — Shoplifting rates in New York, Los Angeles, and Chicago have stayed elevated since the pandemic, as highlighted in a report by the Council on Criminal Justice. This surge in retail theft has sparked political debate over public safety. Many Americans, fueled by viral videos of thefts during the COVID-19 pandemic, believe crime is rampant, though perceptions have slightly improved. A majority still think crime rates are higher than past years.
“There is this sense of brazenness that people have — they can just walk in and steal stuff. … That hurts the consumer, and it hurts the company,” stated Alex Piquero, criminology professor and former federal Bureau of Justice Statistics director. He emphasized the need for legal compliance.
In 2024, at least eight states, including Arizona, California, and New York, enacted 14 laws to combat retail theft, as reported by the National Conference of State Legislatures. Measures include redefining retail crimes, modifying penalties, and enhancing worker protection. Retailers have reacted to increased theft by securing merchandise, upgrading security systems, and sometimes closing stores.
Chicago saw a 46% rise in shoplifting from January to October 2024 compared to the previous year, despite rates being below pre-pandemic levels in 2023. Los Angeles experienced an 87% increase in 2023 compared to 2019, though reports declined in 2024, possibly due to a new crime reporting system. In New York, shoplifting climbed 48% from 2021 to 2022, with a slight dip last year, but rates remain 55% higher than in 2019.
Shoplifting typically spikes during holiday shopping, with the Council on Criminal Justice noting higher rates in the first half of 2024 than 2023. Researchers suggest the rise might result from better reporting rather than increased incidents. “As retailers have been paying more attention to shoplifting, we would not expect the numbers to increase,” said Ernesto Lopez, the report’s author.
Impact on retailers, communities
In Chicago, shoplifting is mostly reported downtown and in areas like Old Town and River North, according to the Council on Criminal Justice. Cook County State’s Attorney Eileen O’Neill Burke recently reduced the threshold for felony retail theft charges to $300, aligning with state law. “It sends a signal that she’s taking it seriously,” said Rob Karr, Illinois Retail Merchants Association president. Nationally, organized theft concerns retailers, with the National Retail Federation noting 36% of $112.1 billion in lost 2022 merchandise attributed to external theft, including organized crime.
Organized retail crime, involving groups stealing to resell items, targets high-demand goods like baby formula and electronics. Retailers fear associated violence, with 41% reporting a hands-off approach in 2023, up from 38% in 2022. The federation retracted a claim that nearly half of 2021 lost merchandise was due to organized crime, admitting it was only about 5%.
Increased penalties
Shoplifting and organized theft harm industries, increase consumer costs, and reduce state sales tax revenue, prompting states to enhance penalties. California’s Gov. Gavin Newsom signed 10 bills to tackle retail theft, including making repeated theft a felony and enabling cross-county crime aggregation. A September bill imposes stricter penalties for large-scale theft. California voters also approved increased penalties for repeat offenders.
In New Jersey, a bipartisan bill proposes harsher sentences for leading shoplifting rings. “This bill is going after a formally organized band of criminals,” said Assemblymember Joseph Danielsen. The bill proposes extended sentences for repeat offenders and increased penalties for retail worker assaults.
Maryland considered a similar bill to classify organized retail theft as a felony, but it remains under discussion.
Retail theft data
Improved retailer reporting is crucial for understanding shoplifting trends, says Lopez. Crime measurement across jurisdictions is challenging, and organized theft is often not identified at arrest. The Council on Criminal Justice found conflicting FBI crime data, with the older Summary Reporting System showing stable shoplifting rates, while the National Incident-Based Reporting System indicates a 93% rise.
These discrepancies may be due to differences in law enforcement reporting systems. Accurate retailer reports could better allocate law enforcement resources, according to Lopez. “All law enforcement agencies have limited resources, and having the most accurate information allows for not just better policy, but also better implementation — better use of strategic resources,” he said.
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