On December 12, ICSC Public Policy Vice President Abby Jagoda testified before the U.S. House of Representatives Committee On Homeland Security at a hearing titled, “From Festive Cheer to Retail Fear: Addressing Organized Retail Crime.”
During her testimony Jagoda urged Congress to pass the ICSC-supported “Combating Organized Retail Crime Act of 2023” (CORCA) and to provide federal law enforcement agencies with resources to investigate and prosecute retail theft. She also highlighted the impact of store closures on communities.
“Store closures should not be taken lightly: they result in a significant loss of jobs, diminished state and local sales tax, loss of property tax collected, and food and prescription drug deserts,” Jagoda said. “For instance, one grocery store typically creates $2.4 million in annual state and local sales tax and has an average of 133 jobs; a general merchandise store yields approximately $5.2 million and has an average of 188 jobs. Store closures impact the entire ecosystem of a retail center and the community that it serves.”
Summer Stephan, district attorney for San Diego County, California, testified that there are three key challenges facing law enforcement: 1.) The evolution of more sophisticated criminal networks; 2.) An inadequate legal framework that is not sufficient to deter or punish criminals; and 3.) A lack of coordination and information sharing among retailers, law enforcement agencies and other stakeholders.
“Organized retail theft is no longer just the work of isolated petty criminals,” Stephan said. “Instead, it has evolved into highly sophisticated operations, often conducted by well-organized networks and coordinated across multiple locations making identification and prosecution much more challenging.”
Additional hearing witnesses included:
- Michael Krol, Special Agent in Charge, Homeland Security Investigations, New England; U.S. Immigration and Customs Enforcement, Department of Homeland Security
- Jason Kane, Special Agent in Charge, Nashville Field Office, U.S. Secret Service, Department of Homeland Security
- Jose Perez, Deputy Assistant Director, Criminal Investigative Division, FBI, U.S. Department of Justice
- David Johnston, Vice President, Asset Protection and Retail Operations, National Retail Federation
- Scott Glenn, Vice President, Asset Protection, The Home Depot
The House Subcommittee on Counterterrorism, Law Enforcement, and Intelligence is chaired by Rep. August Pfluger (R-TX-11) and comprised of Ranking Member Seth Magaziner (D-RI-2) and Representatives Dan Bishop (R-NC-09), Lou Correa (D-CA-46), Eli Crane (R-AZ-02), Anthony D’Esposito (R-NY-04), Dan Goldman (D-NY-10), Tony Gonzales (R-TX-23) and Dina Titus (D-NV-01).
Click here to view written testimony from witnesses.
For more information contact ICSC at gpp@icsc.com.
ICSC Public Policy Vice President Abby Jagoda testifies before the U.S. House of Representatives Committee On Homeland Security.