What is ‘organized retail crime,’ exactly?

Lack of clarity highlighted

April 05, 2024

Hey there, Retailist family! 🌟 The weekend is just around the corner, and the worlds of e-commerce, retail, and Direct-to-Consumer (DTC) are buzzing with excitement. This past week has been packed with all sorts of news, emerging trends, and cool new developments in our favorite sector. Ready to dive into the top stories with us? Let’s get started!


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In the news: Top headlines this week

What is ‘organized retail crime,’ exactly? Organized retail crime (ORC) is a term that lacks a consistent definition across stakeholders, leading to confusion among retailers, law enforcement, and industry experts. While retailers have reported increasing incidents of ORC contributing to higher levels of inventory loss or "shrink," the absence of a universal understanding of what constitutes ORC complicates efforts to gauge the extent of the issue. This lack of clarity was highlighted by researchers who, even after a year of study for the National Retail Federation, found it challenging to accurately assess the scale of ORC due to its imprecise definition. [Retail Dive]

Ulta Beauty slumps as CEO warns of lackluster first-quarter demand, drags peers. Ulta Beauty's stock plunged by up to 14.5% following warnings from CEO David Kimbell about a notable slowdown in demand across various product categories and intense competition in the first quarter, negatively impacting industry peers like elf Beauty, Coty, and Estee Lauder. This shift marks a departure from years of robust growth, with the company adjusting its expectations to a moderate mid-single-digit range increase. The downturn reflects challenges in maintaining market share in prestige makeup and haircare, despite previous boosts from resilient demand for luxury makeup brands and premium fragrances. [Reuters]

Macy’s hasn’t closed 150 stores yet. But Target, Kohl’s CEOs already smell opportunity. Macy's plan to close about 150 stores has opened the door for retail competitors like Target and Kohl’s to potentially increase their sales, with CEOs from both companies acknowledging the opportunity in recent CNBC interviews. Off-price chains such as T.J. Maxx and Ross, along with department store rivals like Nordstrom, are also positioned to benefit, drawing on their proximity to Macy's locations and shared customer base. This strategic shift by Macy's is part of a broader trend of retail downsizing, creating opportunities for other brands to fill the gap left by retailers like Bed Bath & Beyond and J.C. Penney, which have significantly reduced their store counts. [CNBC]

LeBron James’ The Shop launches men’s grooming line at Walmart. LeBron James' "The Shop" has expanded its brand into the retail space by launching a men's grooming line at Walmart, now available in 1,600 stores and online. This move signifies a significant evolution from the original concept of the show to offering physical grooming products, aiming to empower communities and leverage Walmart's vast retail network for broader accessibility. Originating in 2018 and now in its seventh season, "The Shop" features unfiltered conversations among artists, athletes, and entertainers, discussing a wide range of topics in various barber shops, underscoring the brand's roots in community and dialogue. [Retail Dive]

Levi Strauss raises profit forecast on cost saving initiatives, fewer discounts. Levi Strauss has increased its annual profit outlook, attributing the adjustment to effective cost-saving measures, including job reductions and minimizing discounts on its products. These strategic moves, along with exiting lower-margin ventures and consolidating operations, have propelled its stock upwards by approximately 13% this year, not counting an 8% surge in extended trading following the announcement. Despite a $116 million restructuring charge in the first quarter, the company has seen a rise in direct consumer sales through its website and stores, signaling a positive reception from a stabilizing U.S. consumer market. [Reuters]

Trader Joe's is accused of ripping off smaller food brands. Trader Joe's is facing accusations from some small food brands of replicating their products and bypassing them for deals, according to a report by Taste. This practice has raised concerns as Trader Joe's primarily stocks its shelves with private-label items, offering alternatives like "Joe-O's" instead of well-known brands like Cheerios, which contributes to its reputation for affordable and innovative products. [Business Insider]

New Taco Bell and Wildfang Collab Unveiled. Taco Bell and Wildfang have collaborated to create a unique coverall featuring 20 pockets, each inspired by Taco Bell menu items, aiming to make a statement in the fashion world. This limited-edition piece became available for early access to Taco Bell rewards members through the brand's app, and was subsequently released for the wider public to purchase on Wildfang.com, catering to a broad range of sizes from XS to 3X, including Tall options. [Retail Wire]

Target Lady of ‘SNL’ fame promotes retailer’s revamped loyalty offerings. Kristen Wiig has revived her iconic Target Lady character from "SNL" to promote Target's Circle Week, aligning with the retailer's updated loyalty program offerings. The campaign introduces Circle 360, a new $99-per-year subscription plan aimed at competing with services like Walmart+ and Amazon Prime, alongside other loyalty options. The promotional effort includes a series of 12 commercials, featuring the Target Lady engaging in various activities themed around Target's branding, with one spot even showcasing her receiving tips from a talking pigeon about the perks of Circle 360, such as unlimited free same-day delivery. These ads are set to Prince and the Revolution's “Baby I’m a Star,” connecting the campaign to Target's Minneapolis roots. [Retail Dive]

The great myth about dollar stores. Dollar General CEO Todd Vasos once boasted about the chain's resilience, claiming it thrived both in good and bad times, a statement supported by strong performance during the early stages of the pandemic. However, four years later, both Dollar General and its main competitor, Dollar Tree, are experiencing a slowdown, with Dollar General's same-store sales growth decelerating significantly to just 0.2% in 2023 from 4.3% in 2022. [Business Insider]

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