Institutional Investor Urges Retailers to Stop Appeasing Criminal Activity

WASHINGTON, DC / ACCESSWIRE / September 6, 2023 / The American Conservative Values ETF (ACVF) implores US retailers to stop appeasing criminals and take immediate, aggressive action to combat organized theft.

As institutional investors, we believe the lack of aggressive response is hurting shareholder value. In our opinion investing in better security promises both long-term benefits for investors and, of greater significance, an improvement in the safety of customers and employees.

Recent corporate communications and financial reports from leading US retailers persist in spotlighting a troubling trend, commonly referred to as 'shrinkage.' Historically, loss prevention has posed a challenge primarily attributed to employees and individual shoplifters. However, the landscape has shifted, with organized out-the-door theft emerging as the predominant source of losses.

Retail management's reaction has been surprisingly passive, and the results are predictable. "Appeasing the criminals and not actively addressing the issue has created a self-reinforcing cycle, which inadvertently encourages theft," said ACVF's CEO and co-founder William Flaig, adding, "When criminals perceive that a store's policies are lax or that they can get away without repercussions, they are more inclined to steal. The negative results from appeasement are all too familiar to parents and students of history."

What was once individual "shoplifting" has become an organized criminal enterprise. Organized to such a degree that a thriving illegal market now exists for consumer staples. (FYI: knowingly purchasing stolen merchandise is also a crime.)

Retailers have justified their non-response with the rationale of prioritizing employee and customer safety and cost-benefit analysis.

"Debate surrounds whether their response has genuinely improved customer and employee safety. As one might expect from appeasement, the criminals have grown more audacious and violent," said ACVF's President and co-founder, Tom Carter. He added, "Management has created a demoralizing workplace environment in which employees fear both criminals and their superiors. Some employees have been terminated for instinctively reacting to thieves, in violation of the 'do not engage' policy established by management."