Retail theft has surged to unprecedented levels in America, presenting a significant challenge to public safety and economic stability. As stores shutter and communities suffer, policymakers must urgently address the root causes fueling this troubling trend.
Understanding the causes of this crisis requires a closer examination of how certain legislative changes and prosecutorial philosophies have inadvertently fostered an environment conducive to criminal behavior. One notable cause behind escalating retail theft has been legislative decisions that unintentionally encourage criminal activity.
Since 2000, at least 39 states have increased the dollar threshold required to prosecute retail theft as a felony, significantly weakening deterrents. For example, California’s Proposition 47 raised the felony threshold from $450 to $950, emboldening shoplifters by dramatically reducing potential penalties. In Massachusetts, the felony threshold rose from $250 to $1,200. Similar policies in Illinois, where the felony threshold rose from $300 to $500, and Texas, where it increased from $1,500 to $2,500, have inadvertently created environments more favorable for theft.
Further complicating matters is the rise of organized retail crime (ORC), which involves sophisticated, coordinated groups that systematically steal large quantities of goods for resale through online marketplaces or illicit distribution channels. These operations are well-organized and difficult for local law enforcement agencies to disrupt, especially when hindered by limited resources and jurisdictional fragmentation.
Consequently, theft losses have soared, with ORC costing retailers more than $293 million in the first half of 2023.
Compounding this issue is the rise of progressive prosecutorial approaches in cities such as San Francisco, Chicago and New York. Prosecutors in these urban areas have often chosen to dismiss or downgrade theft charges, signaling to criminals that the justice system will not seriously challenge their illegal activities.
The policies of former prosecutors who openly advocated against prosecuting certain misdemeanors and supported eliminating cash bail exemplify a broader cultural shift that inadvertently fosters permissiveness toward retail theft.
Taking this into account and combining it with diminished law enforcement resources and restrictive policies that limit their effectiveness has created a landscape ripe for widespread theft. Stores are catching shoplifters only 2% of the time, and police make arrests in one out of 100 incidents. With limited deterrence, theft is increasingly normalized, leading to higher incidences of violence and intimidation faced by retail employees. Alarmingly, 50% of retail workers report having witnessed theft firsthand, while 33% have faced violence directly, and 40% now express concern for their daily safety.
The social and economic repercussions of this trend are profound, particularly affecting vulnerable communities. Across America, pharmacies and essential retailers are closing in record numbers due to theft-related losses, creating retail and pharmacy “deserts.”
These closures disproportionately affect low-income families, minorities and elderly populations who rely heavily on local stores for medications, groceries and everyday necessities. Public health experts further emphasize that closures exacerbate the healthcare disparities these communities often experience by limiting access to medications and essential health services for those most in need.
Policymakers have a chance to reconsider their stance on law enforcement and crime policy. During his previous tenure, President Trump championed a law-and-order approach, emphasizing support and resources for law enforcement agencies to curb criminal activities. Policymakers should leverage this national dialogue to institute the comprehensive reforms required to re-establish a balanced, firm approach to deterring retail crime.
Revisiting and repealing lenient crime laws, and reinstating meaningful penalties for retail theft to empower law enforcement to confront these criminals effectively will be a start. Taking action to target organized retail crime and enhance prosecutorial accountability must also be priorities. Additionally, encouraging coordinated efforts among law enforcement, retailers and policymakers to adopt targeted, data-driven approaches is essential. Such collaborative efforts will ensure resources are efficiently directed toward disrupting criminal networks effectively.
Addressing the causes of this crisis can make communities safer, businesses protected, and access to essential services preserved, especially for America’s most vulnerable populations. Ultimately, law and order are the foundations of a thriving society, and policymakers have a critical role in reversing the harmful trajectory of retail crime.
James Fotis is the president and founder of the National Center for Police Defense Inc./InsideSources