Government-Run Stores Face LP Challenges
Government-Run Grocery Stores Could Create New Challenges for Retail LP

As New York City moves toward publicly backed grocery stores, security and operational questions are emerging alongside affordability debates

By the D&D Daily staff

New York City’s plan to open government-supported grocery stores as part of Mayor Zohran Mamdani’s affordability agenda is drawing national attention — not only from economists and grocery operators, but also from retail loss prevention professionals watching closely for potential operational and security implications.

The proposal calls for five city-supported grocery stores, one in each borough, with the first planned for East Harlem. The initiative is designed to address food insecurity and rising grocery costs by using public funding and reduced operating expenses to lower prices on staple goods.

While much of the public debate has focused on economics and competition with private retailers, LP professionals may see the proposal through a different lens: shrink, theft prevention, staffing accountability and operational consistency.

Industry experts interviewed in recent reports have warned that publicly subsidized grocery operations could face elevated theft risks if strong loss prevention systems are not built into the model from the beginning. One economist pointed to the closure of a municipally backed grocery store in Kansas City that reportedly struggled with both inventory shortages and retail theft.

Unlike traditional retailers, government-backed stores may operate under different performance pressures and financial expectations. In the private sector, shrink directly impacts profit margins, influencing staffing levels, security investments, self-checkout controls and merchandise protection strategies. LP leaders may question whether a publicly funded model would maintain the same urgency around theft deterrence and operational discipline.

At the same time, some retail analysts argue that the impact on loss prevention could ultimately depend on how the stores are structured. Several reports suggest the city may rely on private operators to manage day-to-day operations under government guidelines rather than running stores entirely through municipal employees.

If that model moves forward, many standard LP practices — including CCTV monitoring, exception reporting, inventory audits, organized retail crime coordination and employee training — would likely remain essential.

The broader retail industry will be watching closely. Whether the experiment succeeds or struggles, New York’s public grocery initiative could become a case study in how loss prevention operates inside a government-supported retail environment.


Retailers Having Immigration Concerns
Retail/hospitality employers most concerned about immigration policy changes
Immigration enforcement remains a significant concern among employers — particularly those in the retail and hospitality industries.

The majority (70%) of employers in the retail/hospitality industries expect to be impacted by immigration policy changes over the next year, according to an annual survey from Litter, the world’s largest employment law firm. That compares to 49% of all respondents in the survey.

Employers in the retail and hospitality industries have also taken more steps than employers in other industries to address workforce staffing impacts of immigration policy and enforcement over the past year, revealed Litter’s 14th Annual Employer Survey. The survey draws on insights from more than 300 U.S.-based C-suite executives, in-house lawyers and human resources professionals, with the largest percentage of respondents (14%) in the retail and hospitality industries.

More than half of all employers (54%) and 69% of large employers have prepared for government audits, inspections or site visits over the past year, the leading answer choice by a substantial margin. For employers in the retail and hospitality industries, the percentage taking action in this area rose to 78%. This comes as recent immigration site visits (audits/raids) illustrate the scale of potential workforce disruption.

Roughly half of large employers say they conducted immigration compliance training (54%) and adjusted visa sponsorship strategies (48%). Among those in the hospitality/retail industries, 70% say their organizations have conducted immigration compliance training, compared with 49% of all respondents. chainstoreage.com


In-Store Traffic Down 5.5% YoY in April
April In-Store U.S. Traffic Trends
Sensormatic Solutions ShopperTrak Analytics indicates that U.S. in-store retail traffic was down 5.5% year-over-year (YoY) in April, an expected decrease with the shift of Easter from April 2025 to March 2026 (per the NRF calendar). Due to the shifting calendar, retailers often combine March and April to analyze YoY results. Combined, March and April in-store traffic declined 2.4%, which is on par with year-to-date shopper traffic trends.

Grant Gustafson, head of retail consulting and analytics at Sensormatic Solutions, noted, “With Easter shifting to NRF’s March calendar, April traffic declined, but this is not a negative signal for retailers. On the contrary, shopper behavior has held steady over the past year, proven by stable conversion rates and transaction sizes. Shoppers are continuing to emphasize value and the essentials.

Looking ahead, Mother’s Day and Memorial Day will shape May traffic as shoppers prepare for each holiday, purchasing gifts for the former and party/outdoor supplies for the latter.” sensormatic.com


Another Ruling Against Tariffs
Federal court overturns temporary 10% tariffs
President Donald Trump has once again had tariffs he imposed blocked by a legal decision.

In a split two-to-one decision, the U.S. Court of International Trade in New York has ruled that 10% tariffs Trump imposed on all global imports in February 2026 exceed the tariff authority he is granted as president.

According to the Associated Press, the decision only specifically covers legal challenges against the tariffs brought by state of Washington and two private businesses. Jeffrey Schwab, an attorney who represented the two businesses, told the Associated Press “it’s not clear’’ if this ruling also means other entities will have to keep paying those tariffs, which are scheduled to expire July 24, 2026. chainstoreage.com


Numerator: Consumer good prices stay volatile with April increase

Placer.ai: Open-air, indoor centers see visits rise in April


Last week's #1 article --

Store Workers Face Violence Surge
Illinois retail workers confront rising violence as organized crime surges

Top offenders responsible for most incidents; industry groups call for stronger coordination between law enforcement and retailers.

Illinois retail workers are facing increasing levels of in-store violence, driven in large part by repeat and organized offenders, according to new data from global retail crime intelligence company Auror.

The data shows that one in seven retail crime incidents in Illinois involve violence, weapons, or threatening behavior, while the top 10 percent of offenders accounted for more than 63 percent of reported incidents last year. Overall, violent events increased by seven percent compared with the previous year. Firearms were involved in nearly 40 percent of weapon-related incidents, followed by knives and other blades.

The findings, drawn from some of North America’s largest retailers using Auror’s crime reporting platform, highlight the growing risks despite investments in security and loss prevention. The platform allows retailers and law enforcement to identify repeat offenders and organized crime patterns across multiple jurisdictions, helping connect incidents that might otherwise appear isolated.

“Organized retail crime hurts Illinois communities on multiple levels,” said Anne Sagins, executive director of the Illinois Organized Retail Crime Association (ILORCA). “It puts workers in harm’s way and targets local businesses through coordinated operations by criminal groups. Addressing this threat requires strong coordination between retailers and law enforcement.”

“The violence and theft are completely unacceptable,” said Raul Aguilar, head of law enforcement for Auror in the Americas. “Consistent reporting and shared intelligence are helping identify repeat offenders who operate across state lines. These are not isolated incidents—they are organized, multi-state operations.”

ILORCA, the nation’s first statewide intelligence-sharing network for organized retail crime, continues to coordinate efforts across the supply chain, including railroads, trucking companies, and distributors, to combat organized crime comprehensively.  chambanatoday.com