How Organized Retail Crime is Threatening the Retail Industry

Generally defined as "the coordinated theft of merchandise by two or more individuals for the purpose of reselling for financial gain," Organized Retail Crime (ORC) has consistently grown as a problem over the past decade and is projected to become even more of an issue in future years.

ORC costs retail businesses an average of $244,509 per case, the highest the case value has been in over 8 years. The same federation report cited that theft has continued to grow year by year since 2020, with a 3.7% increase from 2022 to 2023. In October 2023, Target announced it was closing 9 stores across 4 states due to organized retail crime. Walmart has closed over 24 stores in 14 different states throughout 2023 due to theft and underperformance.

The impact this crime is having on retailers everywhere means ORC isn’t something that can simply be ignored. Modern, tactical security solutions are needed to help retail businesses, both large and small, collaborate with law enforcement to stop organized retail crime, while still providing a safe and enjoyable shopping experience for customers. It’s not an easy problem to solve, but cloud video security systems may be the answer.

Understanding Organized Retail Crime

While Organized Retail Crime is presenting a notable problem for many retailers throughout the U.S., measuring the extent of the problem has provided some discussion-worthy challenges. ORC, while in previous years described as a clearly definable problem for retailers, has turned out to be far more conditional and nuanced. Definitions for ORC, while available, still lack consistency across state legislation. In certain cases, crimes categorized as ORC could be more accurately defined as cargo or employee theft.

Because of the nuanced nature of this type of theft, data surrounding ORC has shifted due to limited reporting and occasional erroneous claims made in the past. The National Retail Federation and major corporations have attempted to clarify discrepancies in reporting as the crime is more deeply studied. Due to the newness of studies surrounding ORC, it’s critical that retail businesses, both large and small, analyze the available facts and their conditions before determining the security solutions that may work best within the scale of their organization.

Finally, ORC is thought to have many of its incidents go unreported. This lack of reporting, as well as underground criminal networks concealing their activities that would otherwise be linked to ORC, add additional layers of difficulty when attempting to understand the full scope of the crime.

Read on to learn more about the impact ORC is having on today’s economic landscape, as well as how cloud video security can assist retailers’ loss prevention efforts and streamline investigations.
 

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Anti-Shoplifting Initiative Working in Boston
Boston officials say new police initiative curbing shoplifting, but more work needed

At a City Council hearing, business leaders and police said shoplifting remains a problem in key retail areas.

Shoplifting remains a persistent problem in Boston’s busiest retail districts, business leaders and police told the City Council during a hearing this week — but they say new initiatives are beginning to make a difference, even as more work remains.

The hearing, sponsored by Councilor Ed Flynn, comes as retailers across the city continue to sound the alarm about rising theft. “In my opinion, we have to have zero tolerance for stealing,” Flynn said at the hearing. “It hurts small businesses. It hurts the residents. It hurts the consumer. It hurts the City of Boston.”

To combat that, McLaughlin said the Boston Police Department launched the “Safe Shopping Initiative” in March 2024 with the Suffolk County District Attorney’s Office. The program uses shoplifting data and reports from businesses to identify trends, coordinate prevention strategies, and help reduce store closures.

Police said part of the recent rise in theft reports stems from better data sharing between businesses and law enforcement. That data has revealed that many of the thefts are happening in major retail centers in the Back Bay, South End, Downtown Crossing, and South Bay Center in Dorchester.

Retail theft overall jumped 55% in the first half of 2024 compared to the same period in 2019, according to the Council for Criminal Justice.

Boston police said more reporting has led to more arrests. Shoplifting-related arrests rose 60% in 2024 compared to 2023 — 72% above the five-year average — and were up 90% from January to August this year compared to the same period last year. boston.com


UK's Massive Shoplifting Crackdown
Met Police carries out UK's largest-ever crackdown on shoplifting gangs
More than 30 people have been arrested in the Metropolitan Police’s largest-ever crackdown on shoplifting gangs.

Officers carried out raids at 120 shops in the capital suspected of purchasing items stolen from major retailers and reselling them at discounted prices. Hundreds of thousands of pounds worth of items were seized, including electronic devices and make-up.

Scotland Yard said its actions, which also led to nine stores being served closure notices, sends a “clear message to anyone profiting from stolen goods”.

London mayor Sir Sadiq Khan said: “Shoplifting has a profound impact on business owners and communities, with organised gangs stealing to order.

“Record funding from City Hall is helping the Met build on significant reductions achieved in theft and robbery — both down since the start of the year — with 92 per cent more shoplifting cases solved.”

Home Secretary Shabana Mahmood added: “Shop theft is a scourge that tears at the fabric of communities.

Shop theft has hit a record high in England and Wales, with a 20 per cent surge last year due to rising costs, the growth of organised crime rings and a perception of reduced police presence. ca.news.yahoo.com

   RELATED: Review of 2025: crime against retail


UK Bill to Fight Retail Crime Moves Forward
Retail crime reform bill passes key milestone in House of Lords
The Crime and Policing Bill has completed its Second Reading in the House of Lords and will now proceed to the Committee Stage.

The milestone change in retail crime legislation comes amid mounting concern over theft and violence in the retail sector, and forms part of the UK government’s ongoing efforts to curb shoplifting and protect retail workers.

New measures target retail crime threshold and worker safety

Key changes embedded in the retail crime legislation include the removal of the £200 threshold for so-called “low-level” theft.

Under the existing framework, shoplifting of goods valued at £200 or less has typically been treated as a minor offence; the Bill proposes that all shop theft be treated as “general theft” with potentially more serious court procedures.

Another major provision introduces a standalone offence of assaulting a retail worker. The factsheet accompanying the Bill states that the offence will carry a maximum penalty of six months’ imprisonment and/or an unlimited fine.

These measures aim to send a clear signal that both theft and violence in stores are unacceptable and will no longer be regarded as lower-tier crimes. retail-insight-network.com


Theft & Other Crimes Falling Drastically in San Francisco
How Bad is San Francisco’s Crime Problem? Examining the Numbers
The San Francisco Police Department’s (SFPD) tally shows there have been 22 homicides so far this year, compared to 26 at the same time in 2024. According to the San Francisco Chronicle, those numbers indicate the city is on track to have the lowest number of homicides since 1954.

The SFPD data also shows that other violent crime is down this year. Rape is down 16.4 percent compared to the same time in 2024, while assault is down 22.8 percent. Burglaries are down 28.6 percent and motor vehicle theft is down 45.4 percent.

The data also shows that larceny theft (the unlawful taking of another person's personal property) is down by 23.3 percent. But while citywide incidents of larceny theft have fallen to 13,234, from 17,234 at the same time last year, such incidents have surged in one distinct region, the Southern District.

Larceny theft in the SFPD’s Southern District has gone up by 67.4 percent compared to last year, climbing from 1,330 incidents to 2,226. Those thefts increased the most at shopping malls and grocery stores in neighbourhoods in the district, The San Francisco Standard reported. newsweek.com


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