The Rise of Organized Retail Crime: A Societal Crisis

Imagine entering your favorite retail store only to discover that its shelves are only half full, prices are skyrocketing, and there is an unsettling sense of insecurity in the air. Welcome to the new reality shaped by Organized Retail Crime (ORC)—both a covert and not so much covert operation that goes beyond simple shoplifting.

In a world already grappling with the record high inflation rates, ORC has emerged as a dark underbelly of the retail sector, exacerbating economic uncertainty. It is not just a matter of a few stolen items; it is a multi-billion-dollar racket that employs complex tactics and leaves retailers and consumers as the ultimate victims.

The situation's urgency is evident, as nine states have been compelled to enact new laws specifically targeting this menace. However, laws alone are not sufficient. This article delves deep into the intricate web of ORC, exploring its rapid rise, its extensive impact on everyone, from small business owners to the average consumer, and the innovative measures being implemented to combat this escalating threat.

So, join us as we navigate through this complex issue that is not limited to the retail industry but is a societal problem that affects us all in ways we may not even realize.

COVID Pandemic Catalyst

The COVID-19 pandemic has played a significant and undeniable role in the increase of Organized Retail Crime (ORC) across various communities. As per the insightful survey conducted by the esteemed National Retail Federation (NRF), it has been revealed that a staggering 53% of consumers firmly believe that retail crimes, including the notorious act of shoplifting, have observed a noticeable surge since the COVID-19 pandemic. These compelling findings find further validation in the comprehensive data provided by the NRF, which unequivocally demonstrates a staggering 60% increase in ORC incidents since the year 2015, thereby adversely affecting almost 70% of retailers.

Regardless of one’s belief regarding COVID, the pandemic has unleashed tremendous volatility in our society, leading to a surge in unemployment rates and financial instability. These tumultuous circumstances have undoubtedly contributed to the alarming rise in ORC incidents. It is a harsh reality that retailers are not only grappling with the loss of valuable merchandise but they are also forced to confront the broader economic ramifications, such as severe job losses and diminished access to essential goods and services.

It is abundantly clear that the pandemic has acted as a powerful catalyst, significantly exacerbating the already burgeoning issue of Organized Retail Crime. Consequently, it has presented formidable challenges for both the struggling retailers and diligent law enforcement agencies who strive to combat this rampant criminal activity.

Economic Impact

The economic impact of Organized Retail Crime (ORC) is incredibly significant, with estimated losses reaching a staggering $45 billion in 2022 alone. This alarming figure highlights the immense financial strain that major retailers such as Walmart and Target face. In order to alleviate this burden, these retailers are seriously considering implementing drastic measures like store closures.

However, the consequences of ORC are not limited to retailers alone. The ripple effects of this criminal activity can have far-reaching economic implications for entire neighborhoods. As a result, stores may be forced to adjust their operating hours, or in some cases, they may even be forced to shut down completely. This not only impacts local employment opportunities but also hinders the accessibility of goods for the community at large. ORC has evolved into a "multi-billion dollar problem" that significantly threatens the overall U.S. economy.

It is important to recognize that ORC is not just a concern for the retail industry. It represents a major economic challenge that affects communities and the broader economy as a whole. By addressing this issue head-on and implementing effective countermeasures, we can work towards safeguarding the financial stability of businesses, preserving employment opportunities, and ensuring the accessibility of goods for everyone.

Some of the cities and retailers that have been hit the hardest by retail crime are:

• New York City: over 63,925 shoplifting incidents were reported in 2022, with a 45% increase from 2021; most targeted retailers are CVS, Walgreens, Duane Reade, Macy’s, and Bloomingdale’s
• Los Angeles: 6,473 shoplifting incidents were reported in 2022, with a 44% increase from 2021; most targeted retailers are Target, Walmart, Home Depot, Rite Aid, and Walgreens
• San Francisco: about 2,900 shoplifting incidents were reported in 2022 despite a $950 misdemeanor threshold; most targeted retailers are Safeway, CVS, Walgreens, Target, and Whole Foods
• Chicago: about 2,500 shoplifting incidents were reported in 2022, with a 32% increase from 2021; most targeted retailers are Target, Walmart, Walgreens, Jewel-Osco, and CVS

Estimated Figures that demonstrate the increase in economic loss due to ORC

Criminal Tactics and Technology in Organized Retail Crime (ORC)

1. Pre-Operation Planning Criminal organizations involved in Organized Retail Crime (ORC) often start with meticulous planning. They meticulously identify target stores, which are usually big-box retailers, and focus on everyday consumer goods rather than luxury items. This careful planning allows them to maximize their chances of success and minimize the risk of detection.
2. Team Formation ORC groups typically involve a highly organized team of individuals known as "boosters." Each member of the team has a specialized role, such as a lookout, a driver, or a shoplifter. This division of labor ensures that each task is executed efficiently and effectively.
3. In-Store Tactics: Once inside the targeted store, these criminals employ a wide range of tactics to carry out their operations. These tactics include organized theft of merchandise, return fraud, and the fraudulent use of gift cards or loyalty programs. They are constantly refining their tactics to stay one step ahead of store security and loss prevention measures. An example being:

Rapid Execution: Smash and grab operations are characterized by their speed and force. Unlike other forms of ORC that involve meticulous planning, these are often quick and violent, designed to be over in a matter of minutes or even seconds.

1. Escalation in Violence: In recent years, criminals involved in ORC have become increasingly "brazen and violent" in their approach. Some of these criminals are willing to use force or weapons to ensure the success of their operations. This escalation in violence poses a significant threat to the safety of store employees and customers.
2. Technological Exploits: ORC groups are also leveraging technology to enhance their operations. They use encrypted communication apps to coordinate in real-time, allowing them to quickly adapt to any changes in store security or law enforcement tactics. This use of technology makes it even more challenging for authorities to track and apprehend these criminals.
3. Online Marketplaces: After successfully obtaining stolen goods, these groups exploit online marketplaces to resell the items. This not only allows them to reach a wider audience but also makes it more difficult for law enforcement agencies to trace the origin of the stolen goods. The online nature of these marketplaces further complicates efforts to combat ORC.
4. Money Laundering: To further obscure their illicit gains, ORC groups often engage in money laundering activities. The proceeds from their sales go through a series of transactions, making it extremely difficult for authorities to trace the money back to its illegal source. This money laundering process adds another layer of complexity to the efforts to dismantle these criminal networks.
5. Adaptation: One of the key strengths of ORC groups is their ability to adapt. They closely monitor law enforcement strategies and loss prevention measures, constantly tweaking their own methods to counteract any countermeasures. This adaptability makes it challenging for authorities to stay ahead of these criminal organizations.
6. Repeat: The cycle of ORC operations repeats itself, with these groups targeting the same retailers or diversifying their targets to evade capture. Their ability to repeat and continue their criminal activities further emphasizes the need for comprehensive and coordinated efforts to

Through the employment of these various tactics and leveraging technology, ORC groups are constantly evolving and posing multi-dimensional threats that are increasingly challenging to counteract. It is crucial for law enforcement agencies, retailers, and other stakeholders to collaborate and adopt proactive strategies to address this growing problem.

Who are ORC Perpetrators

Organized Retail Crime (ORC) involves sophisticated criminal networks that engage in various illegal activities targeting retail stores. These perpetrators operate in a highly organized manner, employing specialized roles and tactics to maximize their success while minimizing the risk of detection.

ORC perpetrators can include:

1. Professional Shoplifters: These individuals are skilled in stealing merchandise from retail stores. They often work in teams and use distraction techniques, tools, or other methods to evade store security measures.
2. Fence Operators: Fence operators are individuals or groups who act as intermediaries between thieves and the market for stolen goods. They buy stolen merchandise from the perpetrators at a fraction of its retail value and then resell it for profit.
3. Cargo Thieves: Cargo thieves target the transportation of goods, stealing valuable merchandise from trucks, warehouses, or distribution centers. They may be involved in hijacking trucks, breaking into storage facilities, or using inside information to carry out their operations.
4. Return Fraudsters: These individuals exploit return policies by fraudulently returning stolen merchandise in exchange for cash, store credit, or gift cards. They may use counterfeit receipts, manipulate identification, or exploit loopholes in the return process.
5. Organized Gangs: Some criminal organizations engage in ORC as part of their broader illegal activities. These gangs may specialize in various criminal enterprises, including drug trafficking, human trafficking, or organized violence.
6. Youth Smash and Grabbers In recent years, a concerning trend has emerged within the realm of Organized Retail Crime (ORC)—the involvement of youth in smash-and-grab operations. These young individuals, often part of loosely organized groups, engage in quick and forceful thefts from retail stores, mirroring the tactics employed by professional ORC perpetrators.

The allure of fast money and the thrill of crime have attracted some young individuals to participate in these activities. They may be enticed by the potential for easy cash or influenced by peer pressure within their social circles. The involvement of youth in smash-and-grab operations highlights the need for comprehensive approaches to address the root causes of such behavior and provide alternative opportunities for these individuals.

1. Employee Theft: Employees within retail stores can also be involved in ORC. They may steal merchandise directly or collude with external criminal networks to facilitate thefts.

It is important to note that ORC perpetrators operate across different regions and jurisdictions, making it challenging to track and apprehend them. Their activities extend beyond individual acts of shoplifting, posing significant threats to retailers, communities, and the economy as a whole.

Countermeasures Against Organized Retail Crime (ORC)

1. AI-Driven Analytics: In order to effectively combat Organized Retail Crime (ORC), retailers are increasingly leveraging the power of artificial intelligence to analyze customer behavior, inventory levels, and other data points. By doing so, they are able to identify suspicious activities that may indicate ORC, allowing them to take proactive measures to prevent and mitigate losses.
2. Holistic Enterprise Security Programs: A comprehensive approach to security is crucial when it comes to tackling ORC. Retailers understand the importance of integrating various security measures to create a robust security program. This includes implementing surveillance systems, providing personnel training to enhance vigilance, and utilizing advanced technologies to enhance overall security capabilities.
3. Investment in Security: The significant investment being made by retailers in security measures is a testament to the seriousness of the ORC issue. In 2022 alone, retailers collectively spent a staggering $350 million on enhancing their security infrastructure. This investment reflects their commitment to safeguarding their assets and ensuring the safety of their customers and employees.
4. Collaboration with Law Enforcement: Recognizing the need for a collaborative approach, retailers are actively collaborating with law enforcement agencies to combat ORC. By sharing information and working together, they are able to develop effective strategies and solutions to address this growing problem. This partnership between retailers and law enforcement agencies plays a crucial role in deterring and apprehending ORC perpetrators.
5. Loss Prevention Strategies: Retailers are taking proactive measures to develop their own customized loss prevention strategies to combat ORC. Often, they collaborate with specialized ORC resources and groups to gain valuable insights and expertise. By leveraging these partnerships, retailers are able to stay one step ahead of ORC activities and effectively protect their merchandise and assets.
6. Online Monitoring: Recognizing the shift towards online platforms for selling stolen goods, retailers are actively monitoring various online marketplaces. By closely monitoring these platforms, retailers can identify and report any suspicious activities related to ORC. This proactive approach helps in creating a safer online environment and supports the efforts to combat ORC on multiple fronts.

A Wake-Up Call for a Society at Risk

As we stand on the precipice of a new era, one marked by technological advancements and unprecedented challenges, the shadow of Organized Retail Crime (ORC) looms larger than ever. It is not just a retail problem; it is a societal crisis that reverberates through the very fabric of our communities, affecting each and every one of us—whether we realize it or not.

The staggering numbers and the multi-faceted tactics employed by ORC groups are not just statistics on a page; they are a grim testament to the evolving nature of crime in the 21st century. The rapid escalation of ORC, exacerbated by the COVID-19 pandemic, is not merely an economic issue—it is a threat to our social stability, a challenge to our collective sense of security, and a dark mirror reflecting the vulnerabilities of our modern society.

As ORC continues to evolve, employing increasingly sophisticated methods and technologies, it becomes clear that this is not a battle that can be won by retailers or law enforcement agencies alone. It requires a unified front, a collective will, and a societal commitment to reclaiming the sanctity and security of our public spaces. It demands that we look beyond our individual experiences and recognize that the fight against ORC is a fight for the soul of our communities.

The $45 (Big +) billion economic toll is not just a loss for big-box retailers; it is a loss for all of us. Every store closure, every job lost, and every community impacted represents a step backward in our collective pursuit of prosperity and well-being. The ripple effects of ORC are not confined to the balance sheets of corporations; they infiltrate our homes, affecting our access to essential goods and services, and erode the trust that is the cornerstone of any thriving community.

The countermeasures being implemented, from AI-driven analytics to holistic security programs, are not just corporate strategies; they are societal safeguards, a line of defense against a growing menace that threatens to undermine the values and norms we hold dear. The investment in these countermeasures is not just a business expense; it is an investment in the future of our society.

In this complex and interconnected world, the issue of ORC serves as a stark reminder that our fates are intertwined, that the actions of a few can impact the lives of many. It challenges us to rise above our complacency, to question the status quo, and to confront the uncomfortable truths that we may have chosen to ignore.

As we navigate the murky waters of this modern dilemma, let us remember that the fight against Organized Retail Crime is not just a fight for the survival of retail stores; it is a fight for the survival of our communities, our values, and ultimately, our way of life.

So, as you walk through the aisles of your favorite store, feeling the weight of invisible eyes watching, calculating, and plotting, ask yourself: What kind of society do we want to live in? And what are we willing to do to protect it?

The time for action is now. The stakes have never been higher. And the choice is ours to make.

?

Citations

1. Security Magazine - Organized retail crime in focus
2. US Chamber - Tackling the Rise in Organized Retail Crime
3. NRF - The rising toll of organized retail crime
4. CNBC - Organized retail crime: Nine states pass laws to crack down on theft
5. Genetec - How can retailers combat organized retail crime?