Are we living in a lawless state of chaos with our shopping experiences under siege from organized criminal networks?
At a Glance
- Shoplifting rose by 93% from 2019 to 2023, passing costs onto consumers.
- Organized retail crime leads to significant inventory losses for retailers.
- ORS compels retailers to increase security investments, impacting prices.
- Proposed legislation aims to enhance collaboration against ORC.
- The Combating Organized Retail Crime Act strengthens legal tools and establishes a new coordination center.
The Organized Retail Crime Surge
Shoplifting may sound like a petty crime from an era gone by, but today’s reality tells a vastly different story. From 2019 to 2023, shoplifting ballooned by an astonishing 93%, wreaking havoc on consumer wallets as stores pass increased security and loss prevention costs down the line. Organized retail crime (ORC) involves well-coordinated efforts by criminal networks, resulting in colossal inventory losses that leave retailers scrambling to protect their investments and maintain price stability.
In response, retailers have resorted to bolstering security measures with technology, personnel, and insurance, all of which add to consumer costs. However, no single solution seems capable of tackling the well-oiled machine of ORC syndicates. The impact is widespread, forcing an unimaginable 90% increase in dollar loss due to shoplifting and a disturbing rise in theft-associated violence.
Retailers and Platforms Join Forces
To combat this menace, a collaboration between retailers, law enforcement, and online giants like eBay has become paramount. Through initiatives such as PROACT, eBay partners with relevant stakeholders, reflecting efforts where, in 2023, loss prevention at CVS locations reached an astounding $50 million save. Innovative companies seek integration of e-commerce marketplaces into strategic counteractions against ORC, enhancing traceability and accountability of stolen goods sold on their platforms.
The absence of adequate collaboration risks more store closures, restrictive shopping experiences, and inflated prices as retailers grapple with security measures like plastic lockers and reduced inventory. Many stakeholders, like the Retail Industry Leaders Association (RILA), tout the necessity of cooperative efforts with law enforcement to dismantle organized criminal rings, ensuring safer, more affordable retail environments for consumers.
Legislative Solution: Combating Organized Retail Crime Act
Enter the legislative front: the Combating Organized Retail Crime Act (CORCA). This proposal aims to fortify legal tools, set up a critical coordination center within the Department of Homeland Security, and foster enhanced cooperation at federal, state, and private levels. Congressman Dave Joyce heralds the bipartisan support for CORCA, acknowledging its potential to mitigate theft, fraud, and broader ORC threats against the American retail supply chain.
The growing chorus of support spans a wide array of stakeholders, from the National Retail Federation (NRF) to the American Trucking Associations (ATA). Their backing underscores the pressing necessity of CORCA to shield the integrity of retail supply chains and protect consumer interests. As we stand on the edge of a retail apocalypse, tackling organized retail crime requires swift legislative action, compelling all involved parties to unite against this retail scourge.
