Vera Institute of Justice’s Post

In July, the #NationalRetailFederation urged #Congress to pass the Combating #OrganizedRetailCrime Act Of 2023. The legislation would create an interagency ORC Center within #HomelandSecurity Investigations. It also would toughen the criminal code to better prosecute organized retail crime. The Organized Retail Crime Center would develop national-level intelligence via information sharing across federal, state and local agencies. It would support collaborative investigations and serve as a training hub. The criminal code would boost enforcement tools and emphasize organized retail crime. Congress is taking measures against resellers on e-commerce sites. Lawmakers passed the INFORM Consumers Act in 2022. That requires online marketplaces to verify high-volume sellers to curb flipping of stolen products. The law took effect in August .Organized retail crime will remain the top priority," the NRF wrote. "Expenditures against retail theft have factored into construction budgets, merchandising budgets, information technology, and staffing and training budgets. This is an enormously important and expensive effort for the retail industry. The continuing growth of organized retail crime and the damage it causes to communities dictate that something needs to be done." #LawEnforcement #RetailIndustry

In the already struggling retail sector, a sinister form of criminal activity is steadily on the rise, posing a significant threat to retailers and consumers alike. Organized Retail Crime (ORC) is not your everyday shoplifting; it's a large-scale theft operation carried out by coordinated criminal enterprises. The stolen merchandise often finds its way to various resale channels, including online auction sites, flea markets, or even other unsuspecting retailers. As a former ORC investigator, I've witnessed firsthand the sophisticated tactics employed by these criminal groups. Their operations are far-reaching, extending beyond store thefts to cargo theft and fraudulent activities like using stolen or cloned credit cards to obtain merchandise. The repercussions of ORC are multi-faceted, affecting not only the financial health of retailers but also the safety and well-being of retail employees and customers. According to the National Retail Federation (NRF), retail "shrink," which encompasses losses due to theft, shoplifting, and fraud, soared to a staggering $94.5 billion in 2021, up from $90.8 billion in the previous year. The report also noted an average 26.5% increase in ORC incidents over the last year, underscoring the escalating nature of this threat. The financial strain on retailers is palpable, but the human cost is even more concerning. ORC groups often resort to violence, posing a grave safety risk to retail workers and customers. Additionally, the resale of stolen items like non-prescription drugs or baby formula poses serious health risks. The NRF has been at the forefront, advocating for legislative measures to combat ORC. The passing of the INFORM Consumers Act is a step towards bringing transparency to online marketplaces, a common platform for the sale of stolen goods. The NRF also supports ORC alliances and regional task forces that unite law enforcement, prosecutors, and retail investigators in a collective effort to combat ORC. The cross-state nature of ORC incidents necessitates federal laws to effectively tackle this issue. The fight against ORC is a collective endeavor. It requires a concerted effort from lawmakers, law enforcement agencies, retail organizations, and the community at large. The advocacy by NRF and other organizations is instrumental in driving the necessary legislative changes and fostering a collaborative approach to mitigate the risks associated with ORC. As we struggle to keep up with rising costs and the challenging retail landscape, staying vigilant and informed about the threats of Organized Retail Crime is imperative. The collaborative efforts to curb ORC will go a long way in ensuring a safer and more secure retail environment for all. Reference: National Retail Federation. (n.d.). Organized Retail Crime. Retrieved 9/22/2023

Lawmakers have introduced a whopping 30 bills on retail theft, and Cal Cities is front and center on this issue, testifying in committee hearings on the spike in retail theft’s impact to cities. Read more for Cal Cities’ take on these important bills. https://lnkd.in/gMc5e6WK

The Co-Op is right. Their own statistics alone are frightening. Its no exaggeration to say that this is a full blown crime wave striking at retailers all over the country - and the hard working teams in the stores are at the forefront of the abuse. In the Capital alone, nearly 56,000 shoplifting offences were reported last year, and when we know that a large number more go unreported, its true to say its out of control. I have seen some arguments saying we don't need these new industry specific laws. That we have laws in place for theft, assault and the like. But try telling that to a shop worker who has been verbally and/or physically attacked. Someone who has been scared in their own workplace. The current laws don't work. The Police are unable to enforce them (why? that's another issue). But store teams, serving tens of millions every week, need more protection, and they need it now. More on this can be found at the amazing Retail Trust website, and their poll on the impact of customer abuse makes a shocking read. https://lnkd.in/dMaYbNRj

Retail theft may be a national issue, but we're missing what's behind it. Scour through earnings reports from retailers, and retail crime is often cited as a reason for rising prices and declining revenue. And videos on the internet certainly bolster that argument. And regardless of whether you think sweeping new laws to crack down on organized retail crime will be effective, the reality is it's no longer business as usual. The bigger issue is whether we're addressing the problem or are simply putting a new coat of paint on it. Shrink...we're not talking about what happens when you throw rayon into the dryer. Most would agree that retail organized crime is a major problem, and the statistics bear that out. Organized retail crime has caused $125.7 billion in lost economic activity and a loss of 658,375 jobs. And while the impact of this may be primarily felt by retailers, it is having a ripple effect across the entire economy, and sectors beyond retail. Even without the numbers, the optics are are on full display each time we see videos of open shoplifting taking place. Much of this explains the retail industry's growing influence on public policy. Since 2021, laws have been put in place that would essentially make it more difficult to sell stolen goods in online marketplaces. And new laws working their way through various states would implement stiffer penalties for theft offenses and other changes that would elevate offenses to federal theft cases. The extent and negative impact of retail crime has plenty to do with public opinion. A store shutting down due to crime or customers now spending more to cover the costs of shoplifting directly impacts everyone. Look no further to places like San Francisco's downtown area to see the effects of crime, poor government policy, and ineffective leadership. In this case, implementing new laws affects us emotionally as much as it does our way of life. The looming question is whether these newer laws will actually deter criminals. Unfortunately, similar laws used in drug trafficking have done little to nothing to inhibit the trade. Even online marketplace laws have been less than effective in deterring the sale of stolen goods. Harsher laws and penalties are certainly required, but they're more effective when we're also addressing the root causes of an issue. So far, we don't have a policy for that https://cnb.cx/3ODSs4y #retail #crime #culture #society #morals #publicpolicy #government #law

A continuing trend. Retailers closing or moving their stores due to crime and violence. The National Retail Federation estimates over 112 billion in losses due to theft, fraud and other criminal activity in 2022. I suspect the price will be higher in 2023. #workplaceviolenceprevention #crimeprevention

It’s easy to think of crime in the retail sector as being largely related to small-scale shoplifting, either by individual criminals acting alone, those who are contacts of retail staff, or the staff themselves. However, the issue of organized retail crime (ORC) is growing and may well outstrip the impact of shoplifting alone with crime taking place throughout the entire retail supply chain. #LawEnforcement #OrganizedRetailTheft

Very interesting article regarding the reported numbers related to theft/shrinkage in retail. Turns out that published numbers on "Organized" retail crime were not as high as originally reported. No doubt a complex issue with variable data, but where, why and who is supplying the data matters.

Whether organized retail crime is actually rising is up for debate. Retailers including Target , Foot Locker , Walgreens and Ulta have said theft is a growing problem in recent years. But few have said how often it’s happening or how much money they’re losing from it, fueling accusations from some experts and analysts that they’re blaming crime in order to mask operational missteps. The National Retail Federation estimates that retailers lost $40.5 billion to external theft, including organized retail crime, in 2022. That represented about 36% of total inventory losses — slightly lower than the 37% in 2021.

Target is closing nine stores in major cities across four states, claiming theft and organized retail crime have made the environment unsafe for staff and customers – and unsustainable for business. https://lnkd.in/gC9dSyzM #retail #retailcrime #organizedretailcrime