As the new year begins, retailers are continuing their fight against elevated levels of theft, violence and organized retail crime. According to a new NRF study conducted in partnership with the Loss Prevention Research Council and sponsored by Sensormatic Solutions, retailers surveyed experienced a 26% increase in average shoplifting incidents from 2022 to 2023, while 42% of retailers reported an increase in shoplifting events that involved the threat or act of violence.
Explore how theft and violence have evolved since before COVID and how retailers are combating today's retail crime landscape.
“The Impact of Retail Theft & Violence 2024” also compared statistics from the years before and following the COVID pandemic. The study found retailers reported a 93% increase in average shoplifting incidents in 2023 versus 2019, and 91% of retailers stated shoplifters were exhibiting more violence and aggression during the same period.
A recent report from the Council of Criminal Justice supports the rise in shoplifting based on two key findings. First, the CCJ found that the FBI National Incident-Based Reporting System, which is the newer detailed format for nationwide law enforcement statistics, reported shoplifting increased 93% from 2019 to 2023.
The CCJ also reports that mid-year reporting for 2024 shoplifting rates are higher than the same period in 2023, and it is likely that full-year shoplifting rates for 2024 will be higher than 2023.
Although the retail industry still contends with high levels of theft and violence, progress has been made across several states and jurisdictions, specifically involving organized retail crime activity.
Quantifying organized retail crime in totality has many challenges. Many states realize that the volume of retail theft, cargo theft and online frauds are due to increased demand from ORC groups seeking to resell stolen products.
Today, 28 states have established criminal laws focusing on either those engaged in ORC or enhanced penalties for those who steal repeatedly for the purpose of reselling stolen goods. Several states and jurisdictions have established task forces comprised of law enforcement agencies and prosecutors, focusing on the investigation and prosecution of those involved in ORC activity.
Forty-eight U.S. states operate an Organized Retail Crime Association, bringing together law enforcement and retailers to share information and assist each other in complex investigative support.
Many of these initiatives have multiplied over the past few years, emphasizing the need for resources, partnerships and laws that can best counter the “orchestrators” of the daily thefts that occur across the retail ecosystem.
These efforts have borne some success in the detection, investigation and disruption of ORC groups ranging from smaller, local groups to transnational polycriminals. Engagement by federal agencies like HSI and FBI have shown the complexities of ORC activity with investigations involving cargo theft or financial schemes involving gift card tampering, with proceeds and product leaving U.S. borders.
Still, there is more to be done to support the retail industry and limit the prevalence of these crimes.
To curtail the current level of theft, retailers have been required to implement certain security measures, some causing disruption to the shopping experience and frustrating consumers. Recognizing the disruptions of certain security measures, many retailers continue to partner with industry solution providers to bring innovative solutions that not only protect people and goods but change the landscape of retail theft and violence.
Tony D’Onofrio, President of Sensormatic Solutions, stated it best in his opening perspective: “Retailers and solution providers must work together to build and drive technology that goes beyond thwarting theft in the moment to predicting it so we can proactively lower the chance of violence by mitigating crime. Neither party can achieve this feat alone.”
NRF continues to advocate for national legislation to bring federal resources and support to local, state and tribal efforts to curtail ORC.
Retailers must continue to work with law enforcement agencies to report and properly account for the level of crime occurring across communities. Law enforcement must continue building strong partnerships with retailers that can assist in efforts to investigate ORC groups. Prosecutors and judges need to treat criminals as such, using the laws to dismantle these criminal organizations. Finally, legislators in states with lagging laws must consider amending or creating new laws focusing on today’s criminal behavior.
NRF continues to advocate for national legislation to bring federal resources and support to local, state and tribal efforts to curtail ORC. Ninety-four percent of retailers in our latest report believe that federal legislation is needed to effectively combat organized retail crime.
We applaud the various state efforts that have shown through learnings the “tip of the iceberg.” What is needed now is for Congress to step forward in full support of the fight with a national combating organized retail crime law. Only then — together — can we create an impact against the full size and scope of this national issue.