Organized retail crime isn’t a new phenomenon, but it’s one that’s been steadily growing since police first identified it as a specific type of crime in the 80s, and many retailers allege that it’s gotten exponentially worse in the years since the COVID-19 pandemic.
It seems that organized retail criminals are getting bolder, too. According to a survey on retail security conducted by the National Retail Federation, 8 out of 10 retailers experienced increased incidents of violence and aggression in 2022.
Understanding just how serious organized retail crime is and what its true impacts are is the first step toward taking a proactive approach to deterring and preventing it.
What Is Organized Retail Crime?
Organized retail crime is a term for various types of criminal activities related to the coordinated theft of large amounts of retail merchandise for the purpose of reselling those goods on black markets. This type of crime is also commonly referred to as organized retail theft.
In practice, organized retail theft can encompass a few different types of retail theft, including shoplifting, smash-and-grab theft, and burglary. The key is that, no matter what the tactics are, it’s done in a highly organized fashion and on a large scale.
As opposed to more opportunistic types of retail theft, such as spontaneous shoplifting by an individual, organized retail theft is highly premeditated and involves two main groups of individuals: those who plan thefts and resell the stolen merchandise (ringleaders), and those who carry out the thefts (boosters).
As you may have already guessed, this type of retail crime is often linked to larger organized crime groups, who use their illicit networks to resell stolen goods far and wide for major profits. Organized retail crime can also be carried out by smaller rings, which operate like other organized crime groups but are 100% dedicated to retail theft.
Examples of places where criminals commonly resell stolen retail merchandise include online auction sites, e-commerce sites, flea markets, local businesses, and third-party sellers. They can even send large quantities of merchandise across land borders or overseas to be sold in other countries, such as Mexico.
What Types of Retailers Does Organized Retail Crime Target?
Organized retail theft can affect retailers of all sizes and types, from small specialty stores to big box chains.
Because of the potential for larger profits, thieves often prefer luxury goods, especially jewelry and electronics. But the reality is that any type of merchandise that can be resold is fair game — you can find everything from deodorant and laundry soap to designer purses and jewelry being resold at black markets. There are also criminal groups dedicated to targeting pharmacies and dispensaries.
Criminals will even target a hardware or home improvement store just to steal certain tools that they can use to break into other stores in the surrounding area, then they can sell the stolen tools as well!
Here’s a list of some of the most common targets of organized retail theft:
- Apparel retailers
- Luxury retail stores
- Designer brand retailers
- Big box stores
- Specialty retailers
- Dollar stores
- Electronics/cell phone retailers
- Home improvement stores
- Jewelry shops
- Grocery/convenience stores
- Pharmacies
- Cannabis dispensaries
- Beauty product retailers
- Pawn shops
- Liquor stores
- Gas stations
How Much Does Organized Retail Crime Cost Retailers?
According to the Retail Industry Leaders Association, organized retail crime cost American retailers almost $70 billion in 2020 — and that was before the post-COVID uptick in retail theft that we’ve seen over the past few years.
Statistics from the U.S. Chamber of Commerce’s Retail Crime Data Center showed an increase of more than $21 billion in the cost of retail theft from 2020 to 2021 alone, due to an increase in the average cost of each theft case. While these stats encompass all types of retail theft, organized retail crime is certainly a large driver.
Although it’s hard to get specific data on organized retail crime, as it is not currently tracked by law enforcement agencies as a separate crime category, the National Retail Federation released a 2022 report stating that certain types of crime associated with organized retail theft have shown a year-over-year increase since 2019.
According to the same report, 70% of retailers felt that the threat of organized retail crime had increased over the past five years.
We can infer from all this data that retail crime as a whole is costing U.S. retailers over $100 billion a year by now, with increased organized retail theft being a major factor behind this rising cost.
What’s Behind the Post-Pandemic Rise in Organized Retail Theft?
There are many factors that have been contributing to increased rates of retail theft over the last few years.
For example, during the COVID-19 pandemic, many retail stores cut down on staff in order to be able to continue operating. This resulted in less efficient monitoring of stores, making it easier for criminals to get away with theft.
Organized retail thieves are also becoming more sophisticated, and they know what store policies and local laws they can exploit to increase their chances of getting away, or at least get off with a light punishment if they get caught.
For instance, many retail thieves target stores which they know have policies against preventing shoplifters or smash-and-grab thieves, meaning they can effectively go in, grab what they want — regardless of the presence of shoppers, employees, or even security guards — and make a quick getaway before law enforcement arrives.
Thieves will also commonly only steal up to a certain value in merchandise, which is low enough that their crime won’t be considered a felony theft if they do get caught. Rather than stealing tons of goods from a single store, they’ll hit many different stores while staying under this threshold at each one.
What Can Retailers Do To Combat Organized Retail Crime?
Deterring and preventing organized retail theft is a complex challenge that requires complex solutions, but one of the most effective strategies retailers can adopt is physically fortifying their stores.
Organized retail criminals typically work in larger crews when they break into retail stores, so physical security measures need to be strong enough to be able to repel large groups — QMi is poised to help retailers strengthen their defenses against these attacks through our industry-leading products.
By upgrading their physical security measures, retailers can make their stores less attractive targets for criminals and protect their most valuable merchandise from theft in the event that thieves still target them.
Installing Security Shutters
Security shutters offer a robust first line of defense against organized retail crime, creating physical barriers to forced entry when stores are closed and making it significantly harder for thieves to break in.
For example, rolling security shutters can cover entire storefronts, including display windows and entryway doors, protecting high-risk retailers from after-hours burglary and smash-and-grab thefts.
Using Security Cases for High-Value Items
For retailers that carry small, valuable merchandise that can be easily resold, such as jewelry and electronics, placing the most high-value items in security cases is essential. Those cases can be used on the retail merchandise floor or in backrooms (inventory rooms), minimizing stock rotation while ensuring security. Both of these applications are important for stopping organized retail crime. In backrooms, an inventory room door can also have a security shutter over it for an added layer of protection.
These security cases, made from durable steel and aluminum, keep expensive merchandise hidden from site, deterring would-be thieves, while allowing employees to conveniently access items when they need to show them to potential customers. They can also be fully customized, allowing for modular cases that fit any retailer's requirements.
Implementing Riot Glass for Window Protection
Riot Glass security glazing can be another critical component in securing retail storefronts against organized theft, working in tandem with security shutters to provide an extra layer of defense against forced entry, burglary, and smash-and-grab theft.
This type of security glazing is virtually invisible and nearly unbreakable, resisting impacts from sledgehammers and other tools or objects commonly used by criminals to break storefront windows and doors.
Riot Glass can even be used to reinforce display cases inside a store, allowing retailers to display high-value items while mitigating the risk of smash-and-grab theft.