Organized Shoplifting: When Criminals Pillage the People

Organized retail crime causes harm to businesses, affects customers, and negatively impacts local communities.

“We cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance,” said Target, the 7th largest US retailer, in a statement, announcing the reason for closing nine stores in communities susceptible to high rate of organized retail crime (ORC).

I occasionally patronize Target due to its affordable pricing, wide variety, and convenient location. While the closure doesn’t impact my local store, it’s concerning that in some communities where Target may be the only major retailer, the lives of residents could be disrupted due to organized shoplifting. For example, the closure of the first Target store in Manhattan, which opened in 2010, has left residents disheartened.

Target isn’t the only store impacted by this wave of criminal activity. In recent times, ORC has had a significant impact on a multitude of stores, including but not limited to Apple, Lululemon, and Walgreens. Retailers such as Walgreens, Walmart, Whole Foods, Nordstrom, among others, have been compelled to shut down their outlets in areas that are prone to recurrent organized shoplifting.

These operations are complex and large-scale, causing significant harm to businesses and communities in ways that are unparalleled. ORC groups that target stores undertake detailed surveillance and planning, which includes studying store layouts, camera positions, anti-theft devices, and acquainting themselves with store policies regarding suspected shoplifters. According to the US National Retail Federation, retailers lost over $112 billion in 2022 to ORC. 

The British Retail Consortium (BRC) reported a 26% increase in retail thefts across England and Wales in 2022. In March alone, nearly 33,000 shoplifting incidents were recorded by the police. Over the past year, the police reported approximately 339,206 cases of shoplifting. However, experts estimate the actual figure to be around eight million incidents, resulting in nearly £1 billion in losses for stores.

Organized shoplifters predominantly focus on items like apparel, beauty products, electronics, alcoholic beverages, and food. These items are not just easy to conceal and transport, but they also possess a substantial resale value in the underground market, ecommerce platforms, or even reintroduced into the legitimate supply chain.

ORC not only presents a financial threat but also a security and safety risk for both retailers and customers. These shoplifters use strategies such as aggression, coercion, and distraction to carry out their thefts. 80% of retailers surveyed indicated that incidents of violence and aggression had escalated over the previous year.

Major retailers like Target have had to shut down stores in several cities because of the unsafe environment created by these thefts. Thefts and organized retail crime were identified by Target’s CEO as a major driver for more than $500 million loss in profit compared to the previous year. 

In the UK, a 53-year-old woman made £500,000 through large-scale shoplifting and fraudulent refunds from high-end stores. She tricked these stores into refunding her for goods she had stolen. Her crimes were uncovered when police found a history of refund payments in her bank and credit cards.

However, the damage isn’t limited to these retailers. When stores close, it affects individuals - employees lose their livelihoods, customers lose access to goods and services. Consumers not only face higher prices but also experience scarcity of certain products. Other businesses that depend on the services they provide large retail stores or benefit from shopper traffic are also impacted. 

The community suffers due to the loss of a crucial part of their local economy and social fabric. Target played a key role in boosting real estate value in East Harlem. Realtors included the store in their promotional strategy to attract buyers, thereby increasing property value. With Target closing in the neighborhood, a domino effect is anticipated. 

Solving the ORC pandemic shouldn’t be left to retailers and law enforcement. It’s a crisis that affects everyone. Hence, the solution must involve a collective effort from all stakeholders. 

Promoting public awareness about the crisis is the first step. Many of these offenders reside in the same communities and often boast about their deeds on social media. Making residents understand the impacts of these crimes on their communities might encourage them to report ORC activities. Furthermore, it’s crucial to enlighten people about the detrimental effects of purchasing illicit goods from organized shoplifting rings.

A common element contributing to the rise in ORC is the lenient laws that penalize culprits. Most organized shoplifters are habitual offenders. It’s essential to strengthen the legal structure and penalties for organized retail crime both locally and nationally if we are to tackle this crisis effectively. Already, thirteen US states have implemented new laws to combat organized retail theft, and federal measures are under consideration. 

Businesses can invest in advanced security systems, hire security staff, and train employees to spot and respond to suspicious activities. This includes the investment in innovative technology and security mechanisms like RFID tags, trackers, CCTV cameras, facial recognition systems, and data analytics tools.

Retailers, law enforcement, and communities must collaborate to tackle this problem. The exchange of information and resources can significantly improve the situation. This includes sharing information and insights among retailers and law enforcement agencies about the tactics, strategies, and networks of organized shoplifters.

ORC is an existential threat that requires urgent solutions. Some people contend that the rise in ORC is due to inflation, while others propose it’s a rebellion against capitalism. Nonetheless, there’s no excuse for shoplifting and putting the lives and livelihoods of others at risk. 

If such lawlessness is not contained and curtailed, it could potentially lead to anarchy. We must deter this deterioration and work together to prevent another business from shutting down due to organized shoplifting.