Fear of crime has increased over the past few years. For jewelers (especially retailers), they generally feel like they are on the front lines.
“I’ve never seen jewelers as nervous about crime as they are right now,” says John Kennedy, president of the Jewelers Security Alliance (JSA) in New York City.
Kennedy added that this perception is borne out by the numbers. Historically, crime figures in the jewelry industry have remained steady from year to year, with the JSA recording annual totals of between 1,300 and 1,600 crimes. But last year there was a significant and alarming shift. “The number of crimes occurring in the U.S. industry increased by 27 percent from 2021 to 2022,” Kennedy said. “In 2022, a total of 2,141 incidents occurred. In the year prior to that, we never handled more than 1,600 incidents.”
John Fierst, vice president of global risk services and analytics at Jewelers Mutual Group in Neenah, Wisconsin, also reported a recent increase in criminal activity. “Burglaries are up 20 percent year-over-year in 2022 compared to 2021,” he said. “The number of robberies is up 76 percent year-over-year, which is a real concern.”
Robbery is especially worrisome because it can jeopardize workers and deter customers from shopping. “It’s a big problem,” Fierst said. “Is this going to have a negative perception of our industry? Is it safe for customers to go to the store?”
Tempting target for thieves
Independent jewelry stores and jewelry retailers located in shopping centers are vulnerable to burglaries, and criminals often have the technological ability to disable security system alarms and cameras, Kennedy said. “Now burglars will attack the store’s electrical junction boxes,” he said. “Sometimes it’s very sophisticated.”
But Kennedy added that the number of retail thefts from mall stores is “staggering.” These crimes are often grab-and-run or smash-and-grab robberies. “Jewelry crime is sometimes a crime of opportunity,” says Patricia Low, president and CEO of Mahwah, N.J.-based Coverage Solutions 1976, a Jewelers UnBLOCKed insurance provider. “If it’s a store with an open exterior door, it’s easy. Shopping centers are particularly problematic because there are fewer deterrents to entry.” What’s more, the crowds that used to inhibit flight disappeared during the outbreak, and many areas have yet to return to pre-epidemic levels.
For cost-conscious retailers, fewer mall shoppers could mean fewer employees – another temptation for thieves. “It helps to have more employees on site because it’s harder for the bad guys to act when there are more people,” said Gregory J. Smith, executive vice president of Berkley Asset Protection, a New York City-based insurer.
Many shopping centers hire security guards to patrol the hallways, but tenants may have limited options for providing their own professional security. Mall regulations typically prohibit stores from hiring private security guards or chasing down fleeing criminals, Smith said. “Mall security measures may not be as robust as they used to be,” he said. “Mall security may not stop anyone from leaving today because of the increased risk of being prosecuted.”
Retail jewelry stores aren’t the only potential victims of the current surge in crime. While COVID-19 temporarily banned criminal activity related to trade shows, industry events are once again becoming attractive targets for scammers, Kennedy said. “We’re seeing criminals returning to trade shows in large numbers,” he said. One modus operandi for thieves is to sneak in disguised as workers or maintenance crews before or during a show. “You must always control your product,” Kennedy said.
Higher Cost of Crime
Some experts say changes in community standards, law enforcement and prosecution are driving the rise in crime. “Criminals are no longer being prosecuted as much as they used to be,” Smith said. “There seems to be more organization in smash and grab burglaries, and due to the lack of prosecutions, unfortunately that will continue.”
Not only did the number of industry-related crimes jump last year, but the dollar value of those stolen goods jumped 70 percent, Kennedy said. That increase had a significant impact on insurance premiums.
“Insurance pricing is going up for all companies for a number of reasons,” says Filster. Inflation has pushed up the price of gold and other commodities, as well as the price of replacement materials needed to repair windows, display cases and electrical wiring damaged by burglars. The property casualty industry has had a couple of tough years, fueled by hurricanes and wildfires, pushing up reinsurance premiums.
But Pfister said an increase in the amount of criminal activity is to blame. “It’s just huge losses, and it doesn’t seem to be decreasing.”
Protecting your employees and inventory
The experts we spoke with suggest several steps you can take immediately to help keep your property and employees safe. First, Kennedy suggests you learn about local crime statistics, growth or the wave of retail theft in your area.
During business hours, it can help if you can control access or limit the number of customers at a time and make sure you can see the faces of everyone who enters, Pfister said. “I would encourage you to take off your hats, sunglasses and masks so you can get identification through a camera at eye level.” If someone wants to try on a particularly expensive piece of clothing, ask for a driver’s license or other ID. “Don’t show more than one item at a time and never let that item out of your sight,” advises Philster.
Be wary of large groups, Filster adds. “Legitimate customers rarely come in with more than two or three people with them,” he says. If a lot of people enter your store together, use codes or signals to get all employees, including backroom staff, to the showroom floor to act as lookouts.
Experts say it’s important to practice proper safety protocols when opening and closing your store, and train employees to do the same.
“What people need now is to store more merchandise,” says Gary Wasserman, vice president of Wexler Insurance, whose parent company is Jewelers Mutual Group. “Put your stuff away, lock it up at night and keep less.” It may take a few extra minutes, he says, but it’s much less time than you’d spend pursuing a theft claim.
“At this point you need to be very diligent that all doors are locked before your safe is opened,” Lowe said. “The challenge is to always be vigilant,” she adds, because it only takes a brief lapse to become a victim.