Organized Retail Crimes Increase

On November 30, 2016 By admin

The National Retail Federation came up with the 12th Organized Retail Crime survey this year, and results show that there is an increase in organized retail crime. 59 senior retail loss executives were surveyed this year, representing groceries, drugstores, mass markets, discount stores, and other retailers.

The entire group of respondents believe that they have been victimized by organized retail crime. This is an increase from last year’s 97 percent.

Eighty-three percent further believe that there has been an increase in organized retail crime these past 12 months. Last year, there was an average loss of $453, 940 per $1-billion sales. But this year, there is an increase in losses, averaging at $700,259 per $1-billion sales.

How Organized Retail Crimes are done by ORC Gangs

Sixty-three percent of the loss prevention executives surveyed said that they were able to recover merchandise from physical locations. It is noted that organized retail crime gangs often make use of storefronts, pawnshops, flea markets, and kiosks in fencing stolen merchandise.

On the other hand, 58 percent of the respondents said that they were able to trace stolen goods done on e-fencing operations. ORC gangs are using the anonymity that the Internet offers in an attempt to make covet misconducts.

Manipulation of store return policies are also being done by organized retail criminals. 68 percent of the loss prevention managers said that they have experience criminals returning stolen merchandise in exchange of store credits.

A big chunk of organized retail crimes is cargo theft, marked by 44 percent in the survey – higher than the 38 percent last year. Cargo theft is said to be most prevalent when the merchandise is in transit from manufacturer to retailer, or warehouse to store. On-site theft at the warehouse is also quite prevalent.

ORC is most prevalent in Los Angeles this year. This has been the case since 2012. Los Angeles is followed in order by New York City, Chicago, Miami, Houston, San Francisco/Oakland, Arlington/Dallas/Fort Worth in Texas, Atlanta, Philadelphia, and Orange County, California.

How ORC is being dealt with

Seventy-one percent of the respondents now believe that their companies’ top management now understands the severity and complexity of organized retail crimes, higher than the 63 percent in 2015.

Last year, 30 states have already enacted ORC laws. This year, four new states are added to the list: New Mexico, Oregon, New York, and Vermont. However, 56 percent of the respondents report that they see no increase in support from law enforcement agencies – this being the highest score in the 12 years of the ORC survey.

The senior loss prevention executives that have been surveyed are in hopes for a federal organized retail crime law, as marked by the 79.7 percent who answered.

About NRF

The National Retail Federation world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private sector employer, supporting one in four U.S. jobs – 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF’s This is Retail campaign highlights the industry’s opportunities for life-long careers, how retailers strengthen communities, and the critical role that retail plays in driving innovation.

NRF seeks to advance the interests of the retail industry through advocacy, communication, and education.

Related article: Why is a Surveillance System a must-have for any Retail Store?




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