In the USA, organized retail crime (ORC) is a serious problem that is stealing millions of dollars in merchandise from retailers nationwide. This kind of crime is a huge drain on businesses and governments. It causes increased prices for consumers and reduces sales tax revenue for states and localities.
Organized retail theft is a complex and coordinated criminal operation that can be carried out locally, regionally or nationally. These groups often steal from multiple locations and resell the merchandise through online marketplaces like eBay or flea markets.
According to the National Retail Federation, organized retail crime costs America’s stores tens of billions in losses each year. It’s also a serious threat to public health and safety, as products stolen from retailers are often tampered with or are not properly labeled.
The FBI and the other agencies involved in law enforcement are doing all they can to fight this crime, but it’s a difficult task. And they need help.
Several retail companies have issued warnings to their customers about the dangers of ORC, including Target and Walmart. They say the thefts have already cost them about $400 million this year and are likely to cause them to either raise prices or close some stores.
Meanwhile, the CEO of Best Buy recently warned that he was seeing more ORC in his stores than ever before. He said the problem had become “a real concern” and that it was affecting employee morale.
Attorney General Bob Ferguson recently called for the State Legislature to fund a dedicated retail theft unit in Washington, and he cited a statistic from the trade group RILA that claimed ORC rings represent a $70 billion problem nationwide. But some analysts in the industry, and a criminal justice professor I talked to, pointed out that the RILA figure is far from accurate.
In fact, the most recent NRF study puts the losses of ORC at roughly $700,000 per $1 billion in retail sales, which is a much smaller percentage than the RILA figure.
The issue of ORC is a big deal in the USA, and it’s a national emergency that needs to be addressed now. It’s hurting businesses and contributing to higher prices for shoppers, the US Chamber of Commerce claims.
Earlier this week, a Lynnwood police department operation netted three people wanted in a nationwide ORC ring for stealing from at least one Target store. They’re accused of stealing at least $300,000 from Target over the years.
They are members of a gang based in Michigan that is allegedly responsible for the bulk thefts at Target locations across the country, according to police.
It’s a serious problem that’s taking a toll on retailers and the economy, as it means higher prices for American consumers, less sales tax revenue for state and local governments, and a dwindling supply of the goods that American citizens want most. It’s also a huge threat to public health and safety, as tampered or contaminated products can make us sick.
