The Organized Retail Crime Report by the National Retail Federation (NRF) assesses the tactics and impacts of organized retail crime (ORC).
ORC is widespread, with 97% of retailers surveyed saying they fell victim within the last year. The associated losses average $703,320 per $1 billion in annual sales. Over 65% of those surveyed have seen an increase in ORC over the last 12 months, with 25% noting a significant increase. To combat this problem, 65% of respondents say they are prioritizing ORC more now than five years ago. Popular prevention methods include using additional technology resources, increasing the loss prevention budget, and changing policies that ORC gangs might exploit, like return and point-of-sale guidelines.
While 84% report being satisfied with local law enforcement and 75% say they’re satisfied with state law enforcement, just 64% are satisfied with federal law enforcement. Over 70% feel a federal ORC law is necessary.
Larger cities tend to be the biggest hubs of ORC activity, with Los Angeles, New York, and Houston topping the list. Rising felony thresholds may also correlate to increased ORC activity since gangs can steal more and face misdemeanor rather than felony convictions. Retailers in states that have raised threshold limits report increases in the average ORC case value. Respondents also believe ORC gangs are growing more violent, with 68% saying they are more aggressive than they were one year prior.
The Zellman Group actively participates in the NRF through its sponsorship and membership. As the largest retail trade association in the world, the NRF supports policies, ideas, and people that enhance the retail industry.
Click below to read the full Organized Retail Crime Report.