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NACS Online > News & Media Center > Fact Sheets > Industry Issues > Cigarette Theft
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Industry Resources
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Page Content Some retailers have reported an increase in cigarette theft. There are several factors that can contribute to why cigarettes might be a targeted item by thieves: they can carry a increasingly high price tag, can be easily resold, are easily transportable and are in constant demand.
- Robbery deterrence strategies that the convenience store industry has implemented, particularly cash control, have been proven deterrents recommended safety experts. These practices have helped the convenience store industry outpace other industries in reducing robberies, according to FBI statistics.
- Convenience store robbery is down 16 percent since 1996.
- When retailers have a sign that states that the cash register holds no more than $50, they mean it. Less than $50 was taken in almost half of the robberies in stores, according to NACS' most recent security study.
- The FBI estimates that organized retail theft, which includes stealing cigarettes, is $32 to $35 billion industry (Source: Washington Post).
- Cigarette theft is not theft for personal consumption. Cigarettes are lucrative commodities with an extraordinarily high resale value.
- In addition to cigarettes, organized theft rings steal other high-value, easily transportable, and high resale items like batteries, razors, electronics, CDs and even baby formula. Organized theft rings target products that have a high resale value and constant demand.
- The retail value of the product is higher as a result of the 1998 Master Settlement Agreement. Some of these price increases were aimed at reducing demand by making cigarettes more cost-prohibitive. However, it has also made cigarettes more attractive to steal and acquire more cheaply. Tobacco prices increased 31 percent in 1999, 11 percent in 2000, 8 percent in 2001 and 9 percent in 2002 and 1 percent in 2003.
- In addition, taxes on cigarettes have increased significantly, further increasing the price. The federal excise tax on cigarettes increased 7 cents in 2002. In addition, 21 states increased their excise tax on cigarettes in 2002, and another 16 increased them in 2003. These tax increases, a cumulative $9.03 in 2002 and $5.62 in 2003, added nearly 30 cents to the cost of a pack of cigarettes. New Jersey has the highest state excise tax -- $2.05 per pack -- and 15 states now have state excise taxes of $1.00 or more per pack. The combined city and state excise taxes in New York City are $3.00 per pack.
- So far, cigarette theft has been a localized problem -- based on, or most often connected to areas where organized theft groups have a foothold.
- Organized retail theft, including cigarette theft, is occurring in convenience stores, supermarkets and discount stores.
- Cigarettes are not just stolen at the retail level. Cigarettes can be a target from the time they get unloaded from the rail car from the manufacturer.
- Cigarette theft is also committed at warehouses, on trucks, etc. There have been numerous examples in pop culture citing cigarette theft from delivery trucks, whether a scene in Goodfellas or even an episode of The Simpsons.
- Retailers in markets with higher incidences of cigarette theft are putting in cameras.
- Retailers are better managing their inventory. They are securing extra inventory in a locked back office, and are putting away and securing inventory more quickly
- Retailers always look to partner with law enforcement to find and prosecute criminals.
- Of course, retailers are continuing to follow validated security practices -- such as maintaining clear and unobstructed views, and implementing employee training on following these practices.
- In many cases, cigarettes already are sold behind the counter. Thieves are, in some cases, committing armed robbery of cigarettes and taking them from behind the counter.
- Criminals won't just go away if you eliminate cigarettes. They will fence other high-value, high-demand products.
- The criminals reselling stolen cigarettes don't care who they resell it to -- it's more likely that a sale could be to an underage purchaser, since there is no retailer intervention. The convenience store industry spends hundreds of thousands of dollars on training to avoid sales to minors. This runs around our best efforts.
- Patronizing establishments that sell stolen merchandise just makes these crime rings stronger.
- All customers wind up paying higher prices as a result of theft.
- If someone's selling cigarettes out of the back of his car, you can be pretty sure they have been stolen.
- If something is priced too good to be true, it probably is. If cigarettes are sold at a price that are significantly below what costs are, you can certainly question the distribution process. There are unfair sales laws that impact cigarette prices in roughly half of the states in the U.S.
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