In the midst of holiday shopping chaos, undercover officers in plain clothes were already inside Gastonia’s Target and Walmart stores, silently watching thieves in action. As criminals made their moves, officers, working side-by-side with loss-prevention teams, swooped in.
In just 22 days, 78 individuals were arrested, and $4,342 worth of stolen goods were recovered, including a $735 theft attempt involving tampered anti-theft devices. The operation revealed shocking insights into how far thieves are willing to go—and how fast law enforcement is catching them. What did they uncover next, and how does it connect to a national crime wave?
The Holiday Theft Surge: Why Retailers Are Vulnerable
The holiday shopping season sees a spike in retail theft, with high-demand items like electronics and toys targeted. Operation Naughty List specifically went after repeat offenders, addressing thefts, drug possession, and outstanding warrants.
The operation prevented $4,342.85 in stolen merchandise, including a significant $735 theft attempt using deactivated anti-theft devices.
Rising Retail Costs: Theft Drives Up Consumer Prices
Retail theft adds significant pressure on prices for consumers, as businesses pass theft losses through “shrinkage” fees. Gastonia’s Operation Naughty List, which resulted in 154 charges, highlights a disturbing national trend.
In 2022 alone, shrinkage caused $112.1 billion in losses, an average of 1.6% of total sales, which ultimately drives up everyday prices for consumers.
Target and Walmart Join Forces with Police to Combat Theft
Undercover officers were embedded in both Target and Walmart stores in Gastonia, partnering closely with loss-prevention staff. This collaborative model is spreading nationwide as retailers are increasingly facing violence from aggressive shoplifters.
In 2024, 73% of retailers reported higher aggression, leading to increased use of security measures like locked cases and heightened store security.
Smaller Retailers Struggle with Rising Theft Costs
While big-box stores like Target and Walmart tighten security, smaller retailers are feeling the pinch. In 2024, North Carolina saw a 7% rise in statewide shoplifting.
Independent shops, particularly dollar stores, face growing challenges balancing security costs with the customer shopping experience, leaving them vulnerable to theft.
Organized Retail Crime: A National Crisis
Though Operation Naughty List focused on local offenders, organized retail crime (ORC) remains a pressing national concern. The operation’s drug busts revealed the intersection between retail theft and drug activities, including fentanyl and cocaine.
Retail theft is increasingly tied to larger criminal enterprises, with 66% of retailers reporting ORC involvement across multiple states.
Loss-Prevention Workers Face Escalating Violence
Retail loss-prevention staff, who worked side by side with undercover officers, are facing growing risks. Nationally, 91% of retailers have reported increased aggression from shoplifters, a trend worsened by the pandemic.
Acts of violence against employees rose 17% between 2023 and 2024, underscoring the dangers that retail workers now face on the job.
Law Enforcement Steps Up to Address Statewide Shoplifting Crisis
With 40,344 shoplifting cases reported across North Carolina in 2024, Gastonia’s operation is part of a state-wide initiative to tackle retail theft.
Authorities are stepping up efforts with proactive enforcement, and Gastonia plans to continue surveillance beyond the holiday season to combat rising theft rates.
Theft Prevention Adds to Retailers’ Bottom Line Losses
Gastonia’s operation prevented over $4,300 in theft, a small fraction of the national $112.1 billion annual loss to retail theft.
With an average of 3.5 arrests made daily during the 22-day operation, the scope of the issue becomes apparent. Retailers are under significant financial pressure due to these ongoing theft-related losses.
AI and High-Tech Security Measures Becoming Standard
Target and Walmart are leveraging cutting-edge security technologies, such as AI-enabled cameras and automated tracking systems, to combat theft.
These technologies, though effective at reducing shrinkage, come at a cost to customer experience, with longer checkout times and locked merchandise cases slowing down shopping.
Retail Crime Spillover Affects Local Businesses
High-theft areas don’t just harm big-box stores. Gastonia’s operation highlighted how retail crime affects surrounding businesses.
The rise in theft in North Carolina has spilled into local neighborhoods, as evidenced by trespassing charges filed during the operation. Small businesses, too, are dealing with the ripple effect of retail theft.
The Connection Between Retail Theft and Drug Activity
Alongside shoplifting charges, the police seized fentanyl, cocaine, methamphetamine, and marijuana.
This reflects a broader trend in which organized retail crime is intertwined with drug trafficking and other illicit activities, making enforcement even more challenging.
National Chains Tackle Coordinated Theft Across Markets
Major retailers like Target and Walmart are facing a surge in organized theft, with national operations like “Operation Naughty List” providing localized solutions.
52% of retailers reported increases in organized shoplifting, which directly impacts inventory management, pricing, and security strategies across the board.
Security Measures Impact the Consumer Experience
While necessary to fight rising theft rates, heightened security measures are not without their drawbacks. Customers now experience longer waits due to locked cases and additional screening.
Retailers are caught in a balancing act between protecting merchandise and maintaining a seamless shopping experience for their customers.
Debating Retail Crime Enforcement Versus Social Services
Gastonia’s aggressive approach to theft highlights the ongoing debate about enforcement methods.
Critics argue for a more balanced approach, focusing on addressing the root causes of retail crime such as poverty and substance abuse. Lawmakers, retailers, and law enforcement are continuing discussions on the best way forward.
Security Industry Responds to Growing Retail Theft
As theft rates soar, the security industry is responding with increased demand for surveillance and loss-prevention services.
In the past five years, security companies have seen a 93% increase in demand for retail-focused solutions, as businesses seek to address the escalating shoplifting crisis.
Retailers Double Down on Security Investments
With retail theft at record levels, stores like Target and Walmart are allocating more resources to security, including investing in AI technology and increasing loss-prevention staffing.
These rising investments reflect the need to adapt to the ongoing threat of retail crime and the increased costs associated with it.
Shoppers Must Stay Vigilant and Report Suspicious Activity
In high-theft environments, shoppers are urged to remain vigilant. Simple actions, like keeping an eye on personal belongings and reporting suspicious activity, can make a big difference.
Retailers and law enforcement encourage consumers to participate in reducing theft by using retailer apps and local tip lines.
Continued Focus on Retail Crime in 2026
Gastonia’s Operation Naughty List may have ended, but the issue of retail crime is far from over. With shoplifting continuing to rise, authorities plan to ramp up enforcement efforts in the coming years.
Retailers are likely to keep adopting security technologies and working closely with law enforcement to fight the battle against organized crime.
Operation Naughty List: A Snapshot of Persistent Retail Theft Challenges
The 78 arrests and 154 charges in Operation Naughty List highlight the ongoing challenges posed by retail crime.
Nationally, retail theft remains a persistent issue, prompting enhanced security measures and coordinated law enforcement efforts. This operation serves as a powerful reminder of the need for continued vigilance and collaboration between retailers and police.
Sources:
“Undercover ‘Operation Naughty List’ Leads to 78 Arrests in North Carolina.” People Magazine, 1 Jan 2026.
“The Impact of Retail Theft & Violence 2024.” National Retail Federation, 16 Dec 2024.
“National Retail Security Survey 2023.” National Retail Federation, Sept 2023.
“The Impact of Retail Theft & Violence 2025.” National Retail Federation, Oct 2025.