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NRF Report Finds No Retailer Immune to Organized Retail Crime

Retailers are reporting organized retail crime (ORC) has become more troublesome than ever before. Of the 125 retail companies surveyed for the National Retail Federation’s (NRF’s) eighth annual ORC Survey, 96 percent say their company has been the victim of organized retail crime in the past year, up from 94.5 percent last year.

“What this tells us is that as retailers and law enforcement become more aware of and more proactive in pursuing organized retail crime gangs, criminals have become more desperate and brazen in their efforts, stopping at nothing to get their hands on large quantities of merchandise,” said NRF Vice President of Loss Prevention, Rich Mellor.

Cargo theft continues to grow at an alarming rate, posing huge problems for retailers and their distribution centers. On average, 52.1 percent of companies say they have been a victim of cargo theft in the past 12 months. A significantly higher percent of companies this year said cargo theft occurs mostly en route from the distribution center to the store (68.1 percent vs. 57.4 percent last year), while 43.5 percent say these incidents also occur en route from manufacturer to distribution center.

When asked what new trends exist in organized retail crime, retailers cited familiar issues involving the economy, returned stolen merchandise, gift card fraud, and increases in violent activity upon apprehension. However, new to the list of trends this year were specific references to digital receipt fraud, increased smash and grab incidents, and collusion with street gangs.

“Though retailers continue to make great strides in their fight against organized retail crime, sophisticated criminals with unending opportunities and anonymous outlets to sell their stolen merchandise are proving to be quite challenging for both retailers and law enforcement agencies working to combat this issue,” said NRF Senior Asset Protection Advisor Joe LaRocca “With the types of organized retail crimes changing in severity and scope every day, and cargo theft and violent instances becoming more troubling, retailers are constantly on high alert.”

Despite the increase in incidents, more companies this year believe law enforcement is aware of and understands the severity and complexity of the issue (40.0% vs. 32.3% in 2011). More than half say top management at their company is aware of the problems associated with organized retail crime. NRF strongly believes that organized retail crime must be addressed through Federal legislation by amending the Federal Criminal Code to effectively address the organized and serious nature of this issue, properly defining it as a federal crime with appropriate sentencing guidelines, and providing Federal law enforcement the resources needed to combat this crime.

This post was originally written by Leah Rocketto and published by ToyBook.com. For more news, visit www.toybook.com, follow The Toy Book on Twitter, and like The Toy Book on Facebook. The Toy Book is a bimonthly trade magazine covering the toy industry, published by Adventure Publishing Group.