New York City Mayor Eric Adams is urging retailers to require their customers to remove their face masks before entering stores in order to better identify potential shoplifters.
Adams made the statement on a local radio station Monday, noting that face masks can obstruct stores from identifying individuals who may have committed serious crimes. He added that shoppers can put their masks back on once inside the store.
The recommendation comes as retailers have sounded the alarm about above-average theft rates for months. Walmart CEO Doug McMillon said in December 2022 that stores would close and prices would rise if theft levels did not drop. Target CFO Michael Fiddelke said in November 2022 that missing inventory reduced their gross margin by more than $400 million in fall 2022, and expected that profit losses to grow to $600 million by the end of the fiscal year.
The National Retail Federation estimates that the retail industry is losing a staggering $94.5 billion dollars annually due to theft. Despite this, some retailers, such as Walgreens, are walking back their messaging around theft. Walgreens CFO James Kehoe said in January that the company “cried too much” about theft the year prior, claiming that the company hadn’t seen as much shrinkage in recent months.
Mayor Adams’ call to action is intended to help retailers protect their products and profits from theft and shoplifting. If implemented, it could potentially help to reduce the amount of money lost to theft each year, while also giving store owners a better chance at identifying criminals. Whether or not retailers take the Mayor’s advice remains to be seen.
