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: Irma: flagship store in Copenhagen
30.10.2019   #electronic shelf labels (ESL) #price labelling

Irma: flagship store in Copenhagen

Denmark's oldest grocery chain opens a new store

At the same time Irma, a Danish grocery chain, could celebrate its 133rd birthday, the chain also opened a new flagship store at Østerport station in Copenhagen. Besides showing renewal and being able to ensure the customers updated prices ...

Thumbnail-Photo: Smart meters: Be proactive and reap the benefits...
12.08.2019   #energy optimization #electrical installation

Smart meters: Be proactive and reap the benefits

The Metering Point Operation Act calls for smart meter rollout

The black and analog electric meter box has become obsolete: The mandatory smart meter rollout will commence in a few months. What does the installation of digital, smart electric meters mean for retailers and chain stores? ...

Thumbnail-Photo: New year brings new regulations
13.09.2019   #data management #receipt printer

New year brings new regulations

What are the big changes for German point of sales systems come 2020?

Big changes are coming to Germany’s point of sale systems starting January 1, 2020. Two terms that are tossed around in this connection are "Belegausgabepflicht" (Receipt Provision Ordinance) and ...

Thumbnail-Photo: Making Deeper Connections at ISE 2020
21.11.2019   #digital signage #video

Making Deeper Connections at ISE 2020

Visitor registration opens; exciting new features; most conferences ever; opening address confirmed

Visitor registration opens today for ISE 2020, which is set to be the most compelling Integrated Systems Europe show ever. Taking place at the RAI Amsterdam on 11-14 February 2020, ISE is the world’s leading event for the professional systems ...

Thumbnail-Photo: Nominate your company for the E-commerce Germany Awards 2020!...
21.11.2019   #online trading #e-commerce

Nominate your company for the E-commerce Germany Awards 2020!

Award ceremony as part of E-Commerce Berlin Expo

The E-commerce Germany Awards are officially accepting submissions as of the 4th  November, 2019. Companies within the e-commerce sector are able to apply to one of the ten categories. The annual awards are given out for the third time in ...

Thumbnail-Photo: Mobile payments at the supermarket checkout
05.08.2019   #mobile payment #smartphone

Mobile payments at the supermarket checkout

An early adopter’s experience of mobile payments

Or: "What’s that you’re doing with your watch?“I still remember the first time I used mobile payment technology and paid for items with my smartphone at a supermarket checkout: It was October 17, 2018, exactly seven days after ...

Thumbnail-Photo: Retail analytics: Breaking down data silos and improving operational...
29.07.2019   #data management #data analysis

Retail analytics: Breaking down data silos and improving operational efficiency

How comprehensive data usage led to higher revenue at Heine

“As a business with heritage in mail order, we used to have access to detailed reports about product performance in our catalogues. Once our digital presence grew, we had very limited information available that combined the KPIs for both our ...

Thumbnail-Photo: Retail Asia Conference & Expo (RACE)
07.10.2019   #online trading #retail

Retail Asia Conference & Expo (RACE)

As the leading retail exhibition in Asia, RACE is taken place from 6 – 8 May 2020.

As the leading retail exhibition in Asia, RACE is recognised as the must-join event among the industry’s most influential retailers and customers. RACE features three focus areas: Retail technology, retail design & in-store marketing ...

Thumbnail-Photo: Pay cash? Via code!
26.08.2019   #mobile payment #app

Pay cash? Via code!

Shop online, pay the bill offline

Barzahlen.de relies on good old cash. The concept of the Berlin start-up: shop online, pay in cash at the store. Swimming against the trend of fast online shopping and mobile payment is paying off, says Weina Wang, Head of Retail. In an interview, ...

Thumbnail-Photo: Spar: opening in Copenhagen
30.10.2019   #electronic shelf labels (ESL) #price labelling

Spar: opening in Copenhagen

International Flagship-Store opens for business in Sydhavn, in the South of Copenhagen

On August 22nd, the grocery chain Spar opened its doors to a brand new store with international concepts in the South of Copenhagen area, Sydhavn. The new store offers a modern shopping experience where it should be easy, convenient and enjoyable to ...

Supplier

Permaplay Media Solutions GmbH
Permaplay Media Solutions GmbH
Aschmattstr. 8
76532 Baden-Baden
Superdata GmbH
Superdata GmbH
Ruhrstr. 90
22761 Hamburg
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn