NRF reports increase in organized retail crime

In its 12th annual study of organized retail crime (ORC) released Oct. 18, the National Retail Federation (NRF) noted that 100 percent of the 59 senior retail loss prevention executives it surveyed had experienced ORC in the past year –– up from 97 percent in 2015. In addition, 83 percent of the executives (representing grocery, discount, drugstore, mass market and other retailers) reported that ORC had grown. The average loss was $700,259 per $1 billion in sales –– a significant increase from $453,940 last year.

“Retailers continue to deal with the challenges that come with fighting organized retail crime,” said Bob Moraca, vice president of loss prevention for the NRF. “Every day, criminals are getting more creative in the ways they manipulate the retail supply chain.”

ORC gangs often use storefronts, pawn shops, flea markets and kiosks to fence stolen goods, and 63 percent of those surveyed said they had recovered merchandise from a physical location, NRF said. But many criminals turn to the Internet for the anonymity it offers –– 58 percent of retailers said they had identified stolen merchandise from an e-fencing operation.

Criminals are also finding ways to manipulate store return policies, NRF stated. According to the survey, 68 percent of respondents said they had experienced thieves returning stolen merchandise for store credit, which is often sold to secondary-market buyers.

“Organized retail crime continues to impact retailers at a larger scale now more than ever before,” said Jonathan Gold, NRF’s vice president for supply chain and custom policy. “ORC also poses a threat to unwitting consumers who may purchase stolen merchandise that is not stored properly or may have expired.”