Los Angeles police this week uncovered a theft involving millions of dollars worth of sneakers.
Officials uncovered $7 million worth of Nike sneakers from a warehouse in Torrance, Calif., CBS news affiliate KCAL Los Angeles reported. The Los Angeles Police Department confirmed to FN that detectives were alerted to a theft of several cargo containers Near the Port of Los Angeles. From there, officials followed the goods to the Torrance warehouse, where they executed a search warrant.
The total amount of stolen merchandise ranges between $3 and $7 million, police said, confirming that the investigation is ongoing and arrests are likely in the near future.
FN has reached out to Nike for comment.
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The news comes shortly after Los Angeles law enforcement caught an organized retail crime ring accused of stealing thousands of dollars of merchandise from a single Nike store. Earlier this month, the L.A. Sheriff’s Department (LASD) Major Crimes Bureau Metro Detail Burglary-Robbery Taskforce (BRTF) worked with local police departments to conduct a surveillance operation at the Nike Community Store in East L.A., which has lost $750,000 in just the past year. Officials arrested 12 people who were part of the organized retail crime group.
The surge in retail crime, while particularly rampant in California, has plagued retail stores across the country. The National Retail Federation’s 2022 National Retail Security Survey found that retail shrink, when taken as a percentage of total sales in 2021, accounted for $94.5 billion in losses in 2021.
In their most recent earnings calls, CEOs from Target, Walmart and TJX Companies discussed how retail theft has hit their businesses in the last quarter and how the industry needs to come together to combat the growing problem.
In certain markets like Portland, Ore., and San Francisco, waves of crime have prompted some retailers to wind down their businesses there. Walmart said in March that it would close the last two of its stores in Portland by March 24, though didn’t confirm if the closures were due to crime. In May, Nordstrom said it would close two stores in downtown San Francisco, citing changing dynamics in the city’s market.
A Nike Community Store in Northeast Portland was also reportedly impacted by waves of crime in the region, which likely prompted the closure of the store for weeks, between October and November, KGW8 reported. FN reached out to Nike for a comment regarding the status of this store. (Its website currently leads to a dead end.)
