Organised Crime to Blame for Theft Across Sneaker Supply Chain
The has published a new report stating that robberies across the sneaker supply chain have ramped up, with distribution facilities, trucks, trains and brick-and-mortar stores all at risk. Organised crime rings are targeting the big brands, especially fuelled by the secondary market and inflated resell values on internet platforms like
Stories of increased sneaker-related theft have been a common occurrence over the past few years. Back in June, the Los Angeles police seized $3-million worth of stolen Nike product, which followed a separate arrest weeks prior of individuals who allegedly stole $750,000 in product from a single Nike store. In September 2022, there was also the high profile robbery of Team Swoosh’s Memphis warehouse – the company's biggest distribution centre. Over 20 trailers were broken into, with thieves stealing $800,000 worth of products including the ‘Cherry’ Shortly after, that it will halt all orders for the AJ11 as it violated the platforms terms and conditions.
Brick-and-mortar locations have also felt the cruel sting of retail theft. Over the past year, Nike’s East Los Angeles store reported $750,000 worth of losses from stolen merchandise. And, according to Detective Nick Stewart of the LA County Sheriff’s department, one crime ring was responsible for most of it.
Nowhere in the supply chain is safe. According to data from CargoNet, a theft prevention and recovery network, instances of supply chain robberies have increased 63 per cent during the first half of this year when compared to 2022. Keith Lewis, VP of CargoNet, told the Wall Street Journal ’the supply chain is under attack right now’, going on to state that a pair of sneakers is at risk of being stolen at any stop during its long journey – from location of manufacture to its final destination.
The criminals carrying out large robberies on the sneaker supply chain are far from opportunistic smash-and-grabbers. Heists are carefully planned, with insiders helping to mastermind thefts of shipping containers, products held in warehouses and stock at retail locations. Lists are always made of high-value goods, and layouts are mapped to ensure the plan is a success.
Nike haven’t disclosed the amount that they've lost due to thefts, but the company are feeling the pressure. Back in February, Nike offered to pay for more police to help tackle safety and theft concerns at their Portland retail store; however, the local government denied their request. Team Swoosh didn’t supply a statement to the Wall Street Journal regarding the increase in supply chain theft.