Former Toys 'R' Us CEO slams liberal cities for soft stance on thefts

The former CEO of Toys ‘R’ US has slammed liberal cities for their ‘no prosecution stance’ on shoplifters, warning that brazen thieves like the recent flash mob looters in Philadelphia should face consequences. Gerald Storch, 66, criticized Democrat leaders for sending the message that ‘crime is okay and we’re not going to arrest you’, adding that incidences of violent shoplifting across the nation are ‘accelerating’ at an alarming rate. Retailers lost almost $80 billion to shoplifters last year, an increase of nearly $13 billion compared with 2021 figures – prompting big brands to close thousands of stores across major cities.

The National Retail Federation said the sector is under an ‘unprecedented’ threat from crime and violence, with store owners fearing for their livelihoods as well as their safety. Storch said shoplifting is a particular problem in ‘liberal areas where prosecutors have not prosecuted these crimes, or they have lowered penalties or raised the limits on how much you can steal and still have misdemeanor’. ‘You’re not going to just solve it by just saying crime is okay and we’re not going to arrest you,’ Storch, who also previously served as Target vice chairman, told Fox News. ‘It has to be solved by dealing with the underlying causes, which is a lot more work… but that work has to be done or we’re going to continue to see an increase in crime… it’s terrible, frankly, and it’s accelerating.’

Read Related Also: Lawyer allegedly left small kids alone on beach where 3-year-old was pulled from ‘waist deep’ water by witness

His comments come after widespread looting broke out in central Philadelphia over several nights last week. Around 100 teenagers moved from store to store in the Pennsylvania city grabbing goods and attempting to evade cops, resulting in violent clashes between officers and thieves. Videos shared on social media show officers attempting to grab thieves, some of whom are wearing Halloween masks, as they ran riot through a Lululemon store. Nearby retailers including Foot Locker and Apple were also targeted. Speaking about the spate in Philadelphia, Storch said: ‘These are definitely cities that have a big problem with crime. ‘There has to be a link with the prosecutors taking a no prosecution stance in these cases.’ The National Retail Federation said the sector is under an ‘unprecedented’ threat from crime and violence, with store owners fearing for their livelihoods as well as their safety.

The annual trade survey collected data from 177 brands across the country, accounting for more than $1.6 trillion of annual sales. It found that shrink, the total losses incurred by retailers, rose by $20 billion in a year to an eye-watering $112.2 billion in 2022. And with up to 70 per cent of shrink accounted for by theft, it means retailers lost approximately $78.4 billion to shoplifters. The shocking figure has also jumped by almost a fifth from 2021, when it was around $65.7 billion. The rise has been attributed to the soaring number of violent thefts. Overall, 88 per cent of retailers said shoplifters became more aggressive in 2022. ‘Retail crime, violence and theft continue to impact the retail industry at unprecedented levels,’ the report stated. ‘The effects of these criminal acts are not isolated to large national brands or large metropolitan cities. Daily media reports show that no business is immune, and these issues touch retailers of all segments, sizes and locations across the United States.’

Violent shoplifting events have spiked by more than a third since 2021, according to respondents who track such incidents. Just yesterday 20 people were arrested during mass looting in Democratic-led Philadelphia including one woman who livestreamed the stealing. Footage showed the raiders brawling with police after storming Footlocker, Apple and Lululemon. The worrying rise in incidents has led to some retailers taking drastic action. Last week, Target announced it was closing nine stores across major cities amid soaring theft. Target branches due to close include locations in Democrat areas such as San Francisco, CA, Harlem NY and Portland, OR which have also been the center of shocking shoplifting incidents caught on film in recent months. The move came months after CEO Brian Cornell revealed shoplifters were costing the company up to $500 million a year. Meanwhile CVS will close 900 stores by the end of next year. The retailer is axing 10 per cent of its stores as it pivots to online strategy amid the rampant increase in thefts. According to the NRF, the top five locations worst affected by organized retail crime in 2022 were all Democrat areas.

Los Angeles, CA was the worst affected, followed by San Francisco and Oakland at number two, Houston, TX, New York City and Seattle, WA. The report added: ‘While theft has an undeniable impact on retailer margins and profitability, retailers are highly concerned about the heightened levels of violence and threat of violence associated with theft and crime.’ In addition to shoplifting, the NRF said retailers have also seen an uptick in e-commerce fraud and phone scams to elicit cash or gift cards. It also said ‘sizable minorities’ reported increases in ‘delivery fraud; stolen goods being sold on third-party sites; return fraud; and loyalty fraud and abuse’. The survey also found that 72 per cent of retailers reported an increase in the value of thefts in areas where the felony threshold has increased. Read the full story:

Want more stories like this from the Daily Mail? Visit our profile page here and hit the follow button above for more of the news you need.