Organized retail crime hits a new high according to NRF study

By

Gabriella Lacombe

Published
Nov 20, 2018

The rate of organized retail crime (ORC) has hit a record high according to a new National Retail Federation (NRF) study, with losses averaging $777,877 per $1 billion in sales and nearly three-quarters of retailers surveyed reporting an increase in the past year.

In their 14th annual ORC study, the NRF found that 92 percent of companies surveyed had been a victim of ORC in the past year, while 71 percent said ORC incidents were on the rise. This year's total sales loss per $1 billion marks a seven percent increase from last year's record high of $726,351.

The report showed that most theft occurs online and in physical stores, while 29 percent of ORC occurs in the form of cargo theft. Additionally, eight percent out of an estimated 11 percent total item returns are expected to be fraudulent. 

According to retailers, this new peak has been caused by the ease of committing theft online, from selling stolen goods to gift card fraud, in addition to brick-and-mortar staff shortages. Meanwhile, several state laws increasing the monetary threshold for felony theft charges have seemingly encouraged more theft, as larger quantities can be stolen while only risking a misdemeanor.  

The NRF reported that ORC typically targets items that can be easily stolen and resold, like razors, deodorant and infant formula. However, high-end goods like designer clothing, handbags, top-shelf liquor and cellphones also made the top of the list. 

While 34 states have ORC laws, there is currently no federal protection to facilitate convicting retail criminals who operate across state lines. 

According to the NRF, the top five cities for ORC are New York City, Los Angeles and Miami, while Chicago and Houston tie for fourth place, followed by San Francisco/Oakland.