CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Bold store heists put retailer profits under gun

By Susan Mate

18:03, 25 November 2021

BestBuy store in Georgia, USA
Best Buy store in Athens, Georgia - Photo: Shutterstock

A rash of brazen armed store heists in the US is putting corporate bottom lines under the gun, as police struggle to find culprits and merchants watch for signs of trouble during the start to the year’s busiest shopping season.

Black Friday and Cyber Monday shoppers are braced for possible repeats of the large-scale looting in the past week in areas including San Francisco Bay, Los Angeles and suburban Chicago. Police cruisers and armed foot patrols are being seen stationed outside shopping malls and other businesses.

‘Make an example’ of culprits

California governor Gavin Newsom called for tougher penalties for perpetrators, while nearly all Bay Area County district attorneys promised to deliver tougher treatment for retail thieves. “We need to make an example out of these folks,” Newsom said.

“They’re not just stealing people’s products and impacting their livelihoods. They’re stealing a sense of place and confidence, and that’s why you got to get serious about it.”

This week, Best Buy (NYSE: BBY) CEO Corie Barry pointed to mounting organised thefts, particularly in northern California, as having a detrimental impact on the company’s bottom line and that of other retailers.

‘It's traumatising’: Best Buy CEO

“We are seeing more and more particularly organised retail crime,” Barry said during a Q3 call with analysts. “You can see that pressure in our financials, and more importantly, frankly, you can see that pressure with our associates. It’s traumatising.”

The electronics retailer beat out financial expectations for Q3 profits and sales, though its gross margin measure of profitability took hits from Covid and supply chain fallout, Barry said. Shares of the company fell about 12% in trading after the company topped profit and revenue forecasts on Tuesday.

Oil - Crude

71.80 Price
-0.530% 1D Chg, %
Long position overnight fee -0.0227%
Short position overnight fee 0.0007%
Overnight fee time 22:00 (UTC)
Spread 0.030


15,920.40 Price
+0.350% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 1.8


0.63 Price
-0.110% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168


43,891.95 Price
-0.350% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

According to Newsom, California’s Organized Retail Crime Task Force, founded in 2019, has conducted 773 investigations leading to the arrest of 240 individuals and more than $18.9m (£14.18m) in stolen merchandise recovered.

Dozens of culprits fled to waiting vehicles

One of the most notorious recent robberies was in Walnut Creek near San Francisco, where police said about 80 people barged into the Nordstrom store Saturday about 9 pm and fled with armloads of unpaid merchandise. Three employees were injured in the melee as culprits fled to two dozen vehicles waiting outside.

Bystander videos on social media showed the chaos. Another crime video posted by police showed thieves smashing open a glass display case on 15 November at a jewellery store in Concord, California, and fleeing with thousands of dollars in goods.

Other US retail giants targetted last week include Bloomingdale’s, Hermes, Armani, Burberry and Yves Saint Laurent.

On Wednesday, nearly all Bay Area County district attorneys, including Santa Clara County District Attorney Jeff Rosen, announced they would work together to hand down harsher punishments against suspects who are caught robbing retail stores. He said two suspects are charged with grand theft and burglary in connection with perfume and cologne thefts from malls in South San Jose.

Read more: Redfin says US house prices have hit all-time high

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading