Company News • 20.05.2014

Organized retail crime still major problem for retailers

Retailers allocating more resources to combat ORC, Federal legislation still needed

Organized retail crime still major problem for retailers...
Source: panthermedia.net/pnphoto

A decade has passed since NRF first surveyed its community of loss prevention and security executives about the impact organized retail crime has on their company, and with the release of the 2014 survey, it’s evident that the $30 billion a year problem still poses serious threats to retailers of all sizes throughout the country.

According to the National Retail Federation’s 10th annual Organized Retail Crime Survey, which polled 76 senior retail loss prevention executives, eight in 10 retailers report that they have been a victim of ORC in the past year, down slightly from 93.5 percent last year.

Although retail stores take most of the brunt of ORC activity, criminals are now finding ways to manipulate retailers’ online operations. For the first time, NRF asked about the impact organized retail crime has on their online operations: and nearly half say their online operations are affected.

“Few retail crimes reach the level of concern among retailers that organized retail crime does,” said Senior Advisor, Asset Protection Rich Mellor. “For the better part of 15 years, savvy criminals and the enterprises they’re a part of have forced retailers to change how they deal with fraud, including maximizing efforts to partner with and educate law enforcement. These partnerships have become a crucial part of the fight against retail crime gangs, and while those invested in tracking down retail criminal enterprises can point to some success, it’s evident there’s still a big fight ahead of us.”

Retailers investing more in combating organized retail crime

Thanks to increasing support from the C-suite and other senior executives at retail companies many loss prevention executives say they are allocating additional resources to combat ORC. Overall, three-quarters (74.7%) of those surveyed say they are allocating resources. Of that group, one in five (22.7%) are adding staff resources, 34.7 percent are adding technology resources and 17.3 percent are adding budget resources. Additionally, when it comes to personnel, a number of retailers report investing more than 1 million dollars annually on staffing ORC investigation teams.

When asked about their company’s overall ORC case value for the past 12 months, 13.2 percent of retailers estimate the value to be more than $5 million; the average case value for those who have lost money to organized retail crime is $2.8 million.

“Tighter budgets in retail have made it taxing on some retail companies to adequately prepare for and even prevent organized retail crime from happening in their stores, however, more and more retailers are seeing the value of investing in loss prevention to combat this multi-billion dollar problem that continues to evolve in terms of its scope and sophistication,” said Mellor.

State laws helping, but Federal legislation would go a long way in fight against organized retail crime

As of May 2014, 24 states have enacted laws against criminals who are found to be associated with an organized retail crime gang, a significant feat that states and retailers have worked diligently on for more than 10 years.

In an effort to gauge the level of impact these laws have had on retailers’ ability to prosecute criminals associated with ORC and the level of support they receive from law enforcement, NRF asked retailers this year if they felt state organized retail crime laws were having any impact on their efforts to curb ORC activity.

According to the survey, three in 10 of those polled said they have noticed a reduction in ORC activity in states where laws are present. Additionally, of those retailers who have a presence in states with existing ORC laws, more than half noticed a positive impact on their ability to prosecute ORC offenders more effectively; nine in 10 said they have noticed an increase in support from law enforcement agencies when actively investigating organized retail crime cases.

Specifically, 51.9 percent said they’ve noticed an increase in support from local/county law enforcement, 26.9 percent said state law enforcement and 9.6 percent said federal law enforcement. In states without ORC laws and where retailers have a presence, six in 10 say they haven’t noticed any changes in support from law enforcement.

Because organized retail crime gangs have the means to transport stolen products through multiple states and even overseas, the need for Federal legislation is greater than ever. According to the survey, one in five respondents say they know of instances where stolen products have been illegally exported outside the United States.

“We commend the retailers and states who have dedicated significant attention and resources to put retail crime laws in place, and we are hopeful that these state laws will lead to even greater success with prosecuting retail crime gangs in the future,” said NRF Vice President, Supply Chain and Customs Policy Jon Gold. “And while state laws are putting a dent in the level of ORC cases each year, we believe Federal ORC legislation is still needed to help support the effective efforts at the state level since the criminals tend to operate across multiple states.”

Source: NRF

related articles:

popular articles:

Thumbnail-Photo: Fashion retail: mobile discovery, more convenient shopping...
04.07.2024   #online trading #brick and mortar retail

Fashion retail: mobile discovery, more convenient shopping

How Breuninger is breaking boundaries with omnichannel

Breuninger, with twelve stores in Germany and another in Luxembourg, provides a traditional shopping experience ...

Thumbnail-Photo: Transform Customer Interactions with apg® Customizable Kiosk Floor Stand...
06.08.2024   #customer experience #kiosk applications

Transform Customer Interactions with apg® Customizable Kiosk Floor Stand

The leading provider of point-of-sale cash management and retail solutions, proudly announces the launch of its new Kiosk Floor Stand.

This innovative stand is designed to revolutionize customer service in various business environments through its high adaptability and user-focused design.The apg® Kiosk Floor Stand is unique in its ability to meet the diverse needs of different ...

Thumbnail-Photo: Intelligent shopping assistant: how can it help in the store?...
26.06.2024   #brick and mortar retail #app

Intelligent shopping assistant: how can it help in the store?

Practical examples of use in DIY stores and fashion stores

Product search, navigation, shopping basket management and checkout: intelligent shopping assistants can now be integrated into ...

Thumbnail-Photo: How efficient is your workforce management?
24.04.2024   #workforce deployment #workforce management

How efficient is your workforce management?

Workforce management software in retail is successful when it optimizes processes, increases employee satisfaction, and improves ...

Thumbnail-Photo: New digital customer experience on the sales floor...
29.04.2024   #digital signage #data warehouse management

New digital customer experience on the sales floor

Connecting stationary retail through omnichannel digital signage

The dynamics of digital change and the fast pace of customer expectations are increasing ...

Thumbnail-Photo: Introducing the Design XS Keypad Wall Reader Series...
23.07.2024   #access control #authentication

Introducing the Design XS Keypad Wall Reader Series

A New Level of Security and Convenience for Access Control

Leading global access solutions provider Salto Systems, part of SALTO WECOSYSTEM, is thrilled ...

Thumbnail-Photo: Cash Management with the apg® Note Acceptor...
06.08.2024   #security #cashpoints

Cash Management with the apg® Note Acceptor

Stand-alone or as addition to the smarttill® Suite

Theft and counterfeit fraud are significant threats to retailers, underscoring the need for secure cash management solutions.For reliable bill validation and secure storage of high-volume bills, the apg® Note Acceptor is an essential tool. It ...

Thumbnail-Photo: Successful customer loyalty in times of change: how to win with...
31.07.2024   #brick and mortar retail #sustainability

Successful customer loyalty in times of change: how to win with omnichannel

Challenges and trends in a cross-channel strategy

How has customer loyalty changed? Why is a well thought-out omnichannel strategy crucial ...

Thumbnail-Photo: Introducing the Salto Glass XS Reader Series...
10.07.2024   #RFID (radio frequency identification) #access control systems

Introducing the Salto Glass XS Reader Series

Redefining Smart Access Control

Salto proudly unveils the Glass XS Reader Series, an innovative line of products ...

Thumbnail-Photo: Zebra: Using transparency to combat losses and shrinkage...
24.05.2024   #Tech in Retail #personnel management

Zebra: Using transparency to combat losses and shrinkage

Companies in the retail sector like Lowes Food, Belk’s and Vera Bradley are gearing themselves up for the future with cost optimisation strategies.

Loss prevention is playing an increasingly important role in reducing inventory discrepancies.Inventory is a major challenge for companies in the retail sector: 82% of retailers in Zebra's latest 16th Annual Global Shopper Study say that ...

Supplier

Zebra Technologies Germany GmbH
Zebra Technologies Germany GmbH
Ernst-Dietrich-Platz 2
40882 Ratingen
REMIRA Group GmbH
REMIRA Group GmbH
Phoenixplatz 2
44263 Dortmund
SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal
apg Solutions EMEA Ltd.
apg Solutions EMEA Ltd.
4 The Drove
BN9 0LA Newhaven