Target and Walmart crack down as retail theft rises sharply

Retailers understand that a certain amount of theft can't be prevented.

Back in 2005, when I ran a large toy store, we had cameras all around the store, but a certain number of items went missing every week, and we could often not identify the culprit. Even when we did have someone on camera, it was a challenge to get the police to care about petty theft.

It was also challenging for young staff to police theft, as the cost of stolen items was not worth risking their well-being, particularly in a store without dedicated security or a safety officer.

Larger retailers face similar issues, perhaps even on a grander scale, because they don't have the personal connection to shoppers that an independent store might.

Retail theft and related violence have become one of the largest non-labor cost pressures for U.S. retailers, affecting profitability, pricing decisions, and staffing levels across the industry.

"Retailers reported a 93% increase in the average number of shoplifting incidents per year in 2023 versus 2019 and a 90% increase in dollar loss due to shoplifting over the same time period, according to a study released by the National Retail Federation. Conducted in partnership with the Loss Prevention Research Council and sponsored by Sensormatic Solutions, "The Impact of Retail Theft & Violence 2024."

The study shared a number of key statistics.

• Retailers surveyed experienced an average of 177 shoplifting incidents per day in 2023. However, that number can reach over 1,000, depending on the retail sector.
• Violence remains a major concern for the retail industry. About three-quarters (73%) of those surveyed say that shoplifters are exhibiting more violence and aggression than they were a year ago, and 91% say that shoplifters are exhibiting more violence and aggression compared with 2019.
• Compared with their last fiscal year, 71% of retailers have increased their budgets to support employee training related to workplace violence.

“Retailers and solution providers must work together to build and drive technology that goes beyond thwarting theft in the moment to predicting it, so we can proactively lower the chance of violence by mitigating crime,” Sensormatic Solutions President Tony D’Onofrio said. “Neither party can accomplish this feat alone.”

Now, a new partnership between Target, Walmart, and law enforcement, Operation Naughty List, has led to a meaningful crackdown on retail theft.

Target and Walmart work with local police

"Between November 28 and December 19, 2025, Street Crimes Unit officers, with assistance from Patrol units, conducted targeted operations at high-theft retail locations, including Target and Walmart stores across the city of Gastonia. During Operation Naughty List, officers made numerous arrests for misdemeanor and felony larceny, possession of controlled substances like cocaine, trespassing, and outstanding warrants," the Gastonia North Carolina Police Department shared on Facebook.

Operation Naughty List resulted 78 people being arrested and charged with 154 separate charges.

As part of this initiative, and as seen in the video, Street Crimes officers operated in an undercover capacity in plain clothes inside local retail stores, blending in with shoppers while working closely with store loss prevention professionals. This coordinated approach allowed officers to identify theft in real time, target habitual offenders, and intervene before stolen merchandise left the store.

"As a result of these efforts, officers recovered or prevented the theft of $4,342.85 in retail merchandise, including one felony larceny valued at $735.00 involving the deactivation of anti-theft devices," according to the Facebook post.

Officers also seized illegal narcotics, including fentanyl, methamphetamine, marijuana, cocaine, and drug paraphernalia, and identified several repeat offenders and individuals with outstanding warrants.

Operation Naughty List at a glance

• Dozens arrested in retail theft crackdown: In North Carolina, authorities arrested 78 people at Target and Walmart stores during “Operation Naughty List,” a multiple-week-long undercover operation targeting retail theft and other offenses at major retail locations.
• Multiple charges filed: Law enforcement issued a total of 154 charges related to the operation, including misdemeanor and felony larceny, possession of controlled substances, and trespassing, as investigators worked undercover to identify offenders in real time.
• Merchandise and drugs seized: Police reported preventing the theft or recovering over $4,300 in retail merchandise and also seized illegal drugs such as fentanyl, methamphetamine, marijuana, and other paraphernalia during the arrests.
  Source: WSFA

Retail theft has been a growing problem

Retail theft has been a growing problem since stores reopened after the worst of the Covid-era lockdowns.

“Retail theft is becoming a national crisis, hurting businesses in every state and the communities they serve,” Neil Bradley, the U.S. Chamber of Commerce’s chief policy officer, said in a press release. “We call on policymakers to tackle this problem head-on before it gets further out of control. No store should have to close because of theft.”

Former Target CEO shared alarming news on sales trends back in 2023 with Retail TouchPoints.

Target CEO Brian Cornell noted that the costs of theft go beyond financial losses. “During the first five months of this year, our stores saw a 120% increase in theft incidents involving violence or threats of violence,” he said during a recent earnings call. “As a result, we’re continuing to work tirelessly with retail industry groups and community partners to find solutions to promote safety for our store teams and guests.”

Chains, including Best Buy and CVS, have locked up some merchandise to prevent theft.

"Because they're mostly organized people that are doing it, and they're coming in, they're clearing shelves off, and then reselling them. What I'm most concerned about is the safety of our colleagues and the safety of our customers. So we've implemented new safety measures over the course of the last couple of years," former CVS CEO Karen Lynch told CBS's Norah O'Donnell on the CBS Evening News.

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She acknowledged that locking items up was not a great solution.

"Sometimes you have to put things under lock and key. I don't like it, and I know our customers don't like it," she added.

Organized retail crime (ORC) trends

Shoplifting is defined as theft by a single person.

"Organized Retail Theft (ORT), also known as Organized Retail Crime (ORC), is the large-scale theft of retail merchandise with the intent to resell the stolen items for financial gain. ORT may involve a criminal enterprise that employs a group of individuals to steal large quantities of merchandise from multiple stores," according to the FBI.

• ORC-related theft is increasing: More than 52% of retailers reported increases in shoplifting and merchandise theft tied to ORC groups in the past year.
• ORC is transnational:66% of retailers said organized retail crime now involves criminal groups operating across borders.
• ORC includes diverse theft types: Phone scams (70%), ecommerce fraud (55%), and cargo/supply chain thefts (50%) are all reported to be rising due to ORC.
  Source: National Retail Federation

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