Shoplifting is a serious problem in the United States. The National Retail Foundation conducts an annual survey, and they estimate that “retail shrink,” which includes shoplifting, costed retailers $94.5 billion in 2022. So, what are retailers doing about shoplifting?
Lifestyle retailer Urban Outfitters is known to use magnetic clothing tags, spider wraps, RFID tags, cameras, and security guards to prevent shoplifting. They also had a recent controversy about their shoplifting policy and have since removed employee training that was considered to encourage racial profiling of Black shoppers.
Keep reading to learn more about shoplifting and Urban Outfitters’ approach to combating theft.
What Is Shoplifting?
Shoplifting is stealing items from a retail store during regular business hours. An individual pretends to be a customer but may conceal merchandise in their pockets or purse and then leave the store without paying.
Customers may also pay for some items, but not everything, which is still considered shoplifting. Theft outside of normal business hours is considered breaking and entering or burglary, not shoplifting.
Shoplifting can also include altering or attempting to alter the price of an item. For example, switching hang tags or placing clearance tags on regularly priced items. Another shoplifting tactic is switching clothes.
A shoplifter may go into a dressing room and switch the old clothes they wore into the store with the new clothes. Then they would wear the new clothes out of the store, leaving the old ones in the dressing room.
Retailers sometimes refer to “retail shrink” rather than shoplifting. Retail shrink refers to multiple sources of profit loss including customer shoplifting, employee theft, damage, and point of sales error.
The National Retail Foundation said that retail shrink is increasing and now costs retailers almost $100 billion per year.
However, this increase could be due to an increase in any or all of the issues that lead to retail shrinkage.
How Do Stores Prevent Shoplifting?
Many retail stores have teams dedicated to preventing retail shrink called loss prevention teams. Loss prevention teams work behind the scenes and on the sales floor to catch shoplifters.
For example, a loss prevention officer may be hired to review cameras and identify repeat offenders. This evidence can then be used to press criminal charges.
Another way that retailers prevent shoplifting is through security devices like magnetic clothing tags, spider wraps, and RFID tags. These items prevent customers from walking out of the store with any unpaid merchandise.
Magnetic clothing tags are typically attached to high-value or easy-to-steal clothing items. These tags are removed by the cashier when the customer pays for the item.
If the tag is not removed, then an alarm may go off at the door. These tags are also sometimes filled with ink that will ruin the garment if they are removed improperly.
Spider wraps are devices that wrap around boxes so that they cannot be opened. Spider wraps are typically used on high-value electronic devices to prevent a customer from removing the merchandise from the box.
They are removed by the cashier when the customer pays for the item. If the wrap is not removed, then an alarm will go off at the door.
Radio Frequency Identification tags, or RFID tags, are very small microchip stickers that can be stuck to merchandise. These stickers contain the SKU and price information for the item.
The sticker is automatically deactivated when it is scanned by the cashier. If someone leaves without paying for an item with an RFID tag, then the door alarm will go off.
Is Shoplifting A Crime?
Shoplifting is a crime. The type and severity of the charge will depend on your state law. Typically, information about shoplifting charges is in the theft or larceny section of state law.
Typically, the law will state a dollar amount threshold where the crime changes from a misdemeanor to a felony. As the value of the stolen merchandise increases, so too does the severity of the crime.
What Are The Punishments For Shoplifting?
If you get caught shoplifting, you may simply be asked to return or pay for the merchandise and leave the store. However, even if you return the merchandise, the store does have the right to press charges.
You could also be banned from the store. The retailer may have you sign something saying that you understand that you are banned from the store.
If the retailer has proof that you shoplifted and they want to pursue criminal charges, then they can call the police and file a report.
If you are convicted, your punishment could be anything from a small fine to both jail time and a fine depending on the charge and the state that you live in.
What Is The Urban Outfitters Shoplifting Policy?
Urban Outfitters does not have anything about their shoplifting policy on their website. The only information online about their policy comes from former employees.
Former employees have said that Urban Outfitters has a “no chase” policy, meaning that employees are forbidden from following a customer after they have left the store.
Former employees also shared information about a controversial shoplifting policy at Urban Outfitters that ultimately led to a change in company policy.
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Controversy
Urban Outfitters had a policy that involved profiling potential shoplifters. This policy has since been removed.
Former employees shared that they were instructed to use the code term “Nick” or “Nicky” when they saw a suspected shoplifter. The problem was that this term was almost exclusively used to refer to Black shoppers.
As more and more former employees confirmed this tactic, Black shoppers also started sharing stories of when they were racially profiled while shopping at Urban Outfitters and Anthropologie, which is owned by the same company. At the same time, Urban Outfitters was sued for employment discrimination.
Urban Outfitters executives responded to the public backlash by issuing a statement that the company had a “zero-tolerance” policy for discrimination.
They also changed the policy so that no codewords will be used.
What Will Happen If I Shoplift From Urban Outfitters?
If you are caught shoplifting from Urban Outfitters, you could be banned from the store or pressed with criminal charges.
One parent whose daughter was caught shoplifting from Urban Outfitters said that the daughter was banned from the store and had to pay a fine. However, Urban Outfitters did not press any criminal charges.
This does not mean that you can shoplift without fear of criminal charges. Shoplifting is a crime and retailers have the right to press criminal charges.
Any retailer, including Urban Outfitters, may opt to press criminal charges if they catch you stealing merchandise.
How Does The Urban Outfitters Shoplifting Policy Compare To Other Stores?
Compared to other retailers, Urban Outfitters seems to have a reputation for a fairly relaxed shoplifting policy.
Some other retailers have been known to track notorious shoplifters and purposefully wait to press charges until the value of stolen merchandise qualifies as a felony. There are no reports that Urban Outfitters does anything like this.
In fact, one former employee claimed that some Urban Outfitters stores do not have any cameras at all. They do use other common tactics such as RFID sticker tags and security devices to prevent shoplifting from happening.
Like many other retailers, Urban Outfitters does not allow their employees to chase shoplifters for liability reasons.
Conclusion
Overall, Urban Outfitters does what they can to prevent shoplifting; however, after a controversial shoplifting policy was leaked to the public, the retailer has stopped profiling potential shoplifters.
They do use common security devices and have been known to ban shoppers from the store for shoplifting.
Reference Source
https://www.cnn.com/2020/06/26/business/urban-outfitters-racial-profiling-trnd/index.html